Issuing debt: - The treasury prints bonds with promises to pay $ on them - Banks, insurance companies and people buy the pieces of paper and give the gov't $

Issuing debt: - The treasury prints bonds with promises to pay $ on them - Banks, insurance companies and people buy the pieces of paper and give the gov't $ - Gov't has money to spend - Banks periodically sell the bonds to the Fed who can create $ out of thin air - Note by law the treasury can't sell directly to the Fed $1 Trillion Coin: - Treasury mints coin - Treasury sells it to the Fed who can create $ Both can be inflationary, but the optics on the coin are terrible. And with currency appearances matter.