[SubMareener]

Well, they claim that they borrow it, but basically yes, it comes out of thin air. They don’t actually print it anymore it is all done with computers.

[Garth Tater]

They actually do borrow it. The US dollar is a debt-based currency and comes into existence due to a loan made by one of the Federal Reserve member banks.

When the Federal govt sells bonds to the Fed to finance their deficit the Federal Reserve creates the fake-money they use to purchase the bonds out of thin air. Same deal with all the other loans they make. When you take a loan out on your house you are actually being given cash that was created out of thin air.

It's good to be King owner of the magic-money machine!