[Toddsterpatriot]

The ability of those members to keep a steady stream of imaginary Fed created debt-money flowing to their banks.

How does the Fed do that? How does the Fed get money to flow to the 1st National Bank of FR?

Please run thru the steps, if you can.

[Fingolfin]

How does the Fed do that? How does the Fed get money to flow to the 1st National Bank of FR? Please run thru the steps, if you can.

1. U.S. Government sells bonds (debt).
2. Federal Reserve buys government bonds (debt) from dealers with money in creates for that purpose.
3. That money is deposited into a bank, adding it to our money supply. The 1st National Bank of FR may get it, or it may not.
4. If the 1st National Bank of FR got it, it can now create credit money up to 90% of that deposit as loans and collect interest on it.

Forgive me if I missed something, I am still learning.