But the diagram shows no Dollars ever flowing into the FG pot. How can that be? We already know the answer: A Dollar that flows into the FG pot can serve no logical purpose. The Federal Government doesn’t need that Dollar in order to have a Dollar to spend. For the sovereign to collect I.O.U.s to itself makes no sense. What we have been calling the FG “pot”, then, is not really a “pot” at all in the sense that something can be added to it—and we should modify our diagram slightly to avoid this potential confusion:
