True. But it's also true that the "regular bank down the street" also creates money out of nothing, not just the Fed. That's how fractional reserve banking works. When you deposit $1000 in a checking account, the bank immediately "lends" $900 or more of it, but THEY DO NOT DEDUCT THAT from your balance. That's money-creation right there. The whole system needs to end, and any attempt at re-instituting it should be a capital crime.