| There is a huge confusion in the public between the Fed and the Treasury,
The Fed uses Bonds to create money through the multiplier effect, nothing else. The Treasury is the financing arm of the government, which has nothing to do with the Fed.
The Fed is a super bank that control the flow of money or "create" money using financial "mechanics", while the Treasury is the borrowing arm of the government (Bonds) to finance government projects (annual deficit, wars etc...)
A cooperation of the Fed and Treasury to "monetize debt" has been a possible nightmare scenario, but it hasn't happened yet. It's a complex process by which money is created by the Fed through manipulation of Treasury bonds with the complicity of the US Treasury. |