Government Bonds

Better to just print the money directly (or issue the equivalent
electronic credits).

As long as this is done in proportion to the growth of the economy,
there will be no inflation. This is the single best source of government
investment funds.

Before the American Revolution, colonies did this -- mostly
successfully. It was the ending of this practice about a decade before
the American Revolution at the request of the Bank of England (a mostly
private corporation) that led to the American revolution.
http://www.xat.org/xat/moneyhistory.html
How much has been forgotten by our society. :-( See also:
http://www.siue.edu/~rblain/usdebt.htm
http://www.prosperityuk.com/prosperity/prosperity.html

--Paul Fernhout