Every monetary transaction has source and beneficiary points clearly defined by "sectors" in spreadsheet accounting. In a company, those would be "sales" and "expenses". In the budget of a household, sales would be replaced with wages, while in the case of cities and states the source would be tax and fee revenue. In a sovereign fiat currency regime they are "government" (usually a monopoly "issuer" of currency) and "non-government" (any "user" of currency that isn't empowered to create it on demand).
Banking deals specifically with monetary accounting and has little use for "value" factors that cannot be converted into the standard unit of account which denominates its transactions. Those factors are subject only to the judgment of the currency-issuing government that is empowered to create currency as needed to deploy necessary resources and labor to achieve its objectives. Therein lies the struggle for control of our economy between the forces representing capital and the more democratic interests of labor and the individuals of the electorate.
Even in the process of creating an infinite supply of currency, there needs to be a point in the non-government sector where that currency transitions from political will to "money" and is distributed to those who have the resources the government desires via clearing of payments. That clearing house/bank for the US Congress and Treasury is the Fed. While allowing the Fed to oversee and monitor the health of the banking system was convenient to Congress in its formation that should not be confused with its role in our government. It cannot create "net" money, nor does it "loan" money to Treasury.
The interests of capital have been greatly served by illusions and myths common among the voting populace surrounding money and its sources. Principle among those is the concept of "debt" in the government sector and of our currency-issuing federal government needing to "obtain" money to spend to achieve its constitutional mandate to serve the public purpose.
One only has to apply simple logic to understand that something that doesn't yet exist cannot be collected or borrowed to understand what the source of "net" money in the economy is. It is the money created by Congress that has not yet been used to satisfy a federal tax obligation since our nation's founding. It is, by accounting definition, our national debt, making any effort to eliminate that debt a reduction of the private sector's monetary holdings.
