Yes, issuers of debt have to know who owes them money and where the borrowed money is spent.

If you borrow money, those who lend to you literally own you.

Money is created by lending it. You have to pay it back with interest, but the interest is never created. The interest does not exist. Diabolical indeed.

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And don't forget that debt money, at a government level, requires heavy taxation and all the surveillance and enforcement that entails