No, Treasury directed the fed to issue bonds and run those loans through banks and businesses. When Congress spends money, it spends it into existence- it doesn’t have a pool of dollars that people have sent in somewhere.
For that matter, when you pay your taxes, the money is used to zero out the bonds (again, in the Fed’s ledger) used to issue it. Remember, money in circulation is (from the POV of the fed) a liability on its books.
No, Treasury directed the fed to issue bonds and run those loans through banks and businesses. When Congress spends money, it spends it into existence- it doesn’t have a pool of dollars that people have sent in somewhere. For that matter, when you pay your taxes, the money is used to zero out the bonds (again, in the Fed’s ledger) used to issue it. Remember, money in circulation is (from the POV of the fed) a liability on its books.