How does the Federal Reserve System create money?
Your “paper” money is 75% old denim jeans. But keep in mind that even denim wears out, and a dollar bill lasts about 14 months. Thus, the Federal Reserve is constantly making money as it is constantly taking human-damaged money out of circulation. The core of any economy is how much money is actually being circulated at the moment. The Secretary of the Treasury (guy who signs the bills) decides how all this works, as well as how much to make.
