When the treasury department spends, deposits are created at Fed bank member accounts. Ultimately these deposits end up buying treasury securities or getting p

When the treasury department spends, deposits are created at Fed bank member accounts. Ultimately these deposits end up buying treasury securities or getting paid IOR (Interest on Reserves) in Fed reserve accounts. So the same money that is spent by Treasury "re-cycles" into new treasuries ad infinitum or till we hit the debt ceiling.