Economics of Money and Banking
https://www.coursera.org/learn/money-banking?
The Treasury Department’s Bureau of Engraving doesn’t actually print a lot of new banknotes. The largest banknote is the $100, so it would take a lot of paper to print a billion, much less a trillion dollars. Most money exists as accounting entries on the books of financial institutions, e.g. balances in checking and savings accounts.
Money is created by the Federal Reserve and the financial system, which is much more complicated than you’d imagine.
However, the simple explanation is that when the Federal government deficit spends it does so by issuing Treasury notes and bonds. These become reserve assets in the banking system. The increase in reserve assets allows the banks to loan more money to other borrowers. If the supply of money grows faster than the supply of goods and services, inflation results.
the additional money is comparable to an overstock then, no?
What do you do to get rid of overstock?
You have a sale, not a restriction on it’s use.
raising prices lower the circulation of paper money because we already spent too much to live or to purchase that extra something, an over circulation of cash is not a reality to the average consumer, and a bank that is not lending, has more than they need.
It would seem that the only way to use up that surplus is to purchase something for investment, such as houses or land because of the return. Not increase the cost of beans.