Tom posted these two today below we can read Bill describe things:
A.
...the government tells the central bank to pay some bills to, say, road building companies etc and offers them a bit of paper in return bearing no interest.
The central bank credits the bank accounts of the infrastructure providers... So what fiscal deficits do in this case is expand excess reserves – after all the transactions are exhausted – the liquidity injection from the net public spending shows up as excess bank reserves – these are held in accounts the commercial banks have to hold with the central bank...
Then below Warren describes things:
B.
“Imagine Congress appropriates $1BN to refurbish Air Force One,” said Warren Mosler, pioneer of Modern Monetary Theory. .... “The Department of Defense hires General Dynamics to upgrade the airplane.
The US Treasury instructs the Fed to credit General Dynamic’s account at JP Morgan with +$1bln. The Fed simultaneously debits the US Treasury account with -$1bln and the books are balanced.”
Inequivalent language... A ≠ B...