“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” ― Buckminster Fuller
Where does our money come from?
Where it comes from is different from how many of us get our hands on it. Many think that money comes from paychecks. That's as far as they think about it. If they get a loan or are asked about loans they believe the loans are drawn from deposits in the bank. There are no further questions about the money. If pressed, they will probably say the government creates it as they tap into vague recollections of any Constitution classes or lessons they may have had in school.
If we were a sovereign nation still, then the Constitutional version would be true, or at least within grasp. But the truth is far, far from that. The only resemblance to a sovereign currency we have is the country's name on the front (United States of America) and the fact that physical notes are printed by OUR Bureau of Engraving and Printing (BEP).
We haven't calculated an exact percentage yet, but the vast majority of money in the US is created via a double entry at the bank whenever a loan is taken out. This only happens, to the best of our knowledge, at Federal Reserve private member banks (which are the only stockholders of the Federal Reserve, by the way, which makes the Fed private as well). When a loan is taken out, the bank records both the debt and a credit to your account, which is then officially in circulation and spent as needed. The money created in this process is all digital of course, but whenever someone wants to withdraw physical notes there is, to this point, always sufficient quantities of them on hand because of the next piece of the puzzle.
Physical notes come into existence when the private Federal Reserve Banks place an order with the BEP, for a fee. It is not "issued" by the US Government, though it is printed by the treasury. Those notes are then made available to the member banks for withdrawal requests. Other banks purchase any notes they need from the Federal Reserve.
Reserves aren't issued as physical notes. The Federal Reserve purchases bonds at Federal Reserve Regional Banks, crediting those banks accordingly. There's little direct correlation between this act and the issuance of physical notes. The monetary system of the US for the most part operates digitally - via cards, checks, and transfers.
At no time does Congress have real control let alone creation powers over anything more than coins.

And that's why we have a national debt of even $1.  They have to tax and borrow because all money (other than coins) is debt to private banks.


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