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How the Fed "Prints Money"
To understand how the Fed “prints money,” remember that most of the money in use today is not cash. It's credit that's added to banks' deposits. It’s similar to the kind of credit you receive when your employer deposits your paycheck directly into your bank account. When people say the Federal Reserve "prints money," they mean it's adding credit to its member banks' deposits.
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The Fed Can "Unprint Money," Too
To reduce the amount of capital in the money supply, the Fed raises the fed funds rate. When that happens, banks have less money to lend. They've got to pay each other more to keep fed funds in the overnight account to fulfill the Fed's
reserve requirement.
Raising the fed funds rate causes all interest rates to increase. That makes it more expensive to borrow for business expansion, automobiles, and homes. It slows economic growth, drying up the demand that drives inflation.
The Fed can also reverse the effects of quantitative easing. It does this by selling Treasurys and
mortgage-backed securities to its banks. People worry that the banks won't buy these securities, but they don't have a choice. The Fed removes dollars from the banks' balance sheets and replaces them with these securities.
What happens to the dollars? They vanish. In other words, they go back into thin air where the Fed got them in the first place.
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How the Treasury Prints Money
The
Bureau of Engraving and Printing (BEP) designs and manufactures U.S. currency and securities. Its goal is to prevent counterfeiting. The design also conveys dignity, the power of the U.S. economy, and familiar markings that distinguish it as American currency.
The BEP does this with distinct designs, paper, and ink. In 2003, it added subtle background colors to improve security. Unlike most paper, U.S. currencies are made of 75% cotton. For $5 notes and above, security threads and watermarks are woven into the paper. The front of the bill uses a color-shifting ink, and the $100 bill has a 3D security ribbon.
After a final inspection, the BEP sends completed currency to the nation's central bank, the Federal Reserve.
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its just crazy if you think about how they conjure the shyt outta thin air