Today the Federal Reserve created $12 billion dollars, giving it to an unknown individual, bank, or country in exchange for mortgage-backed securities. This happens all the time in various amounts.
The real kicker however, is when that money gets deposited into a bank, the bank can then lend $120 billion dollars because of our system of Fractional Reserve Banking, thus increasing the total money supply by $120 billion. Fractional Reserve Banking is an inflation multiplier.
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