In an Objectivist society, the government under normal circumstances would neither print nor borrow money. My question is: In today’s deficit-ridden economy, is it less destructive for the government to finance that deficit by issuing unbacked currency directly or to continue its existing policy of issuing bonds? Two advantages I can see in favor of money printing are that it would not involve debt (thus no interest payments), and would not require the participation (or even the existence) of a central bank.

Milton Friedman appears to have preferred direct money creation over debt financing.
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Thoughts?