"What's the difference between directly printing money out of thin air and creating bonds out of thin air and selling it for money (that also was printed or ele

"What's the difference between directly printing money out of thin air and creating bonds out of thin air and selling it for money (that also was printed or electronic)?" A BOND IS A LOAN, A LEGAL OBLIGATION TO REPAY With 100's of years of financial regulation and legal apparatus and precedence, long-standing laws, process and practices it. It's a fundamental part of the credit system. The price of the bond on the the markets will be a function of the coupon rate, and the 'risk' associated with the issuer actually paying back. That's why bonds can be resold because they are worth something. PRINTING MONEY AND SPENDING IT ON MANSIONS (or whatever) IS DILUTION It's just making 'z dollars in circulation' no 'z*n dollars in circulation' backed by the same amount of assets, ergo, each dollar worth less. I recommend "Investopedia.com" where you can go and look up what a 'bond' is, what a 'stock' is, what 'currency' is, and what 'central banks' do, it's a great resource.