Money is created by government spending.  It doesn’t come from anywhere, nor does it cost anything to produce it -- which means the government cannot run out of money.

Money is also created when a person takes out a loan at a bank. But that money has to be paid back eventually (as it's a loan), and once a loan is repaid, the money is actually deleted from existence.

Finally, when the government taxes back money, it's actually deleted from existence, just like bank loans are deleted when paid off.

The value of money is based on the total number of employable people within an economy and the value of all of the goods and services that can be created within that economy.

Its value does not come from gold (in fact, gold got its value FROM money.)

Since money is "pegged" to employment, then this can happen.

Simple. We move a few numbers over from one bank account to the other. The government isn't going to run out of money to spend. Nor is going to go bankrupt.

Listen below to the former Chairman of the Fed - Alan Greenspan as he "schools" Paul Ryan in the fact that there is no issue with government ever being able to pay for something:

short answer: Some countries have experienced higher inflation with steady growth.

So “need” is the wrong question. More like “want” or ideological bias.

Low inflation favors creditors over debtors. Most people and businesses in market economies are debtors, to varying degrees.

Low inflation comes at a cost — larger employment gaps, when mass unemployment is used as the tool to prevent inflation - NAIRU.

Warren Mosler mentioned Turkey as an example of a country that experienced higher inflation with a good economy. When wages and prices both rise in tandem, it’s not a problem.

When overall prices continue to rise (not merely a sudden Supply shock like 1973 long lines for gasoline, rationing, outages, and with prices quadrupling in a short time frame) and yet overall wages stay flat, which obviously can be an engineered outcome, then the population sees more financial poverty, and less wealth, in general.

This shows that basically dollar for dollar, government deficits EQUAL the amount of money the private sector (that's you and us) end up with. If you make the government deficits smaller, guess who's pocket it comes out of? OURS!

This applies to Government Debt as well. Government debt equals private sector (that's you and our's) savings!

From Stephanie Kelton Tweet:

https://twitter.com/StephanieKelton/status/243859548694257665

and..

https://twitter.com/StephanieKelton/status/824292169628389381

Increased government spending will cause inflation. But once again, it won't leave us bankrupt. There is no limit to how much we spend because creating money is a matter of moving numbers up and down in the Federal Reserve Bank.

Read Gary Goodman's answer to If the debt ceiling is not raised, why can't the treasury simply print the money it needs to pay back the Federal reserve? on Quora

Read Gary Goodman's answer to If all countries have their own money printing machines, why is there still national debt? on Quora

Taxes are used to regulate total spending -- we can't have more money in the economy than we have goods being sold. In that case, we would have to increase prices and this would lead to inflation. The government does not need our tax money to pay for expenses. According to Economist Warren Mosler, "the people at the U.S. Treasury who actually spend the money (by changing numbers on bank accounts up) don’t even have the telephone numbers of - nor are they in contact with - the people at the IRS who collect taxes (they change the numbers on bank accounts down), or the other people at the U.S. ”

In reality, we need the government to spend money in order for us to pay our taxes. Not the other way around.

A US Treasury security is a fancy term for the government's savings account.

Also a fancy term for the Fed's checking account.

To quote Warren Mosler once more, “Paying off the entire U.S. national debt is but a matter of subtracting the value of the maturing securities from one account at the Fed, and adding that value to another account at the Fed.”

Essentially, all we would have to do to move some numbers around in our accounts, and the debt is paid off. There aren't piles of cash sitting around in the Federal Reserve, waiting to be spent. Money is created by adjusting numbers on a computer, and there is no limit as to how much we can add or subtract these numbers.

Nothing

Actually, a lot of GOOD will continue to happen IF we DON'T pay off the debt. Meaning, old people will continue to be able to invest their life's savings in risk free bonds and earn interest, that interest income will continue to help the economy grow, etc.