Hum but isn't that in essence how the government is able to make deficits? I mean, without this process the gov wouldn't be able to fund itself other than by ta

Hum but isn't that in essence how the government is able to make deficits? I mean, without this process the gov wouldn't be able to fund itself other than by taxes. So the federal reserve creates money by loaning at ridiculously low rates (currently it's not a bad idea if there really is a threat of deflation), banks then use that money to fund the government by buying treasuries and in such we just inflate the money supply? So banks are like facilitators for this to happen and get 2% back for it? I dunno, I mean yes they make awe full amounts of money but can you really go about cutting out the middle men completely here?