Here's what I don't understand.

All new money = debt. All debt comes with interest. Therefore there is not enough money to pay back the debt.

Money supply must be constantly increased to pay back old debt. Money supply can only be increased by going further into debt.

Governments therefore MUST run deficits to keep the money supply expanding so there is enough money to pay back old debts.

So what we are seeing MUST have happened at some point- constant deficits are the only way to keep the system working.

I remember reading somewhere that during Bill Clinton's terms, while there was a government surplus, the Fed were concerned about the effect this was having on the money supply. Government deficits are REQUIRED.

This seems clear as day to me yet it is not widely acknowledged to be so. Am I wrong? Or is everyone else wrong?