[lumost]

The Fed is playing off the same dynamics as fractional reserve banking. This has been the standard form of banking for ~2-3k years, and allows a bank operating in its own currency (Bank Notes) to create arbitrary amounts of money. This is the same process by which loans are generated.

https://en.wikipedia.org/wiki/Fractional-reserve_banking

[brobdingnagians]

It is wealth transfer from the people to the government; the Romans did it, until their economy collapsed from the strain of perpetual warfare and government spending [1]

[1] https://en.wikipedia.org/wiki/Roman_currency#Debasement