Money is neither created nor destroyed... it just gets swiped in massive quantities just before a deposit of the left-overs hits my bank account.
Money today can be extinguished, as when a loan is paid off, or in aggregate by federal open market operations. Do you consider the prime concern today to be one of deflation or inflation as evidenced by FED activities in the last six months? What, if anything, do you reckon would be the right thing to do with respect to Bear Stearns? Hint: “let them twist slowly, slowly, in the wind” isn’t one of the choices.