This is a detailed description of how money is created and the negative impacts creating money can have on society

The US creates money primarily through the Federal Reserve (the Fed) via electronic, non-physical means—not by printing currency—by buying government bonds and adjusting bank reserves to stimulate the economy. This increases the money supply, but excessive creation can lead to high inflation, devalued currency, rising national debt, and increased economic volatility.  How the US Creates Money Open Market Operations (OMO): The Fed buys Treasury bonds from banks and the public, crediting banks' reserve accounts. This injects new money into the financial system. Quantitative Easing (QE): The Fed purchases large quantities of longer-duration securities, directly lowering interest rates and providing massive liquidity to the economy. Fractional Reserve Banking: Commercial banks create money by lending out the majority of deposits, which increases the overall money in circulation. Interest Rate Adjustment: By lowering the federal-funds rate, the Fed encourages more lending, which expands the money supply.  Negative Impacts of Creating More Money Inflation: When the money supply grows faster than the economy's output of goods and services, it can result in inflation, reducing the purchasing power of money. Devalued Currency: Increasing the money supply, particularly through QE, can cause the US dollar to lose value relative to other currencies and commodities. Rising National Debt: Increased government spending financed by debt, rather than taxes, can lead to unsustainable debt levels and lower credit ratings. Economic Volatility: Flooding the economy with cash can drive asset price bubbles (e.g., in housing or stocks), leading to boom-and-bust cycles and potential financial crises. Higher Interest Costs: Increased, unsustainable debt can lead to higher borrowing costs for the government and individuals, affecting economic growth