Keith it would be so much easier to talk with you if you did not make up terms and new definitions.
Cash is currency plus liquid bank account balances like checking and savings accounts.
https://www.myaccountingcourse.com/accounting-dictionary/cash
“A company’s cash account in its chart of accounts includes all currency and coins owned by the company as well as all deposits in the bank including checking accounts and savings accounts”
You called our paper currency “Treasury bills” but you know that they are “Federal Reserve Notes” and T bills are something different.
The Fed shares a balance sheet with Treasury, so the money the Fed creates to purchase a bond is zeroed out by Treasury’s debt, making the purchase a no-cost exchange.
No, that is not how it works.
The Treasury does not have to borrow money to cover the Fed’s spending buying bonds.
The Fed Decides How Much Money Is Created
The Fed decides how much money gets made. That’s true for both credit and paper currency. Paper currency is called Federal Reserve notes. In 2018, there was $1.7 trillion of these notes in circulation. The Fed spends almost $700 million a year to manage the currency. It pays for printing, transportation, and destruction of the mutilated currency.
The Federal Reserve Board estimates how much demand there is for paper currency. Most of it goes to replace mutilated or outdated bills.
The last two paragraphs of your response are irrelevant to my story.
TEK
