The Federal Reserve, which is the central bank of the United States, is creating new money in order to purchase US government debt, which is essentially equival

The Federal Reserve, which is the central bank of the United States, is creating new money in order to purchase US government debt, which is essentially equivalent to the government printing new money in order to finance its own spending. Looking at it another way, it’s no different than some guy printing counterfeit US dollars in his basement and using them to buy real assets. The outcome is the same in either case - the counterfeiter and the government both get to spend newly created money while simultaneously devaluing of the purchasing power of the dollar for everyone else.