The FRBNY receives Deficit Spending Treasury securities [DS] as the initial step in creating fiat money. The Fed then breaks the DS into components that are added to T securities auctioned to roll-over maturing securities [>$16 Trillion annually.]. If the value of the auctioned DS components went to government, it would eliminate any increase in the National Debt and would eliminate inflation. [It would be the same flow of money as taxation.] It is futile to ask TreasuryDirect where the value of the DS securities goes. Economic books and academic centers ignore the $35 Trillion issue. Ref. 31 CFR §375.3. Where has the $35 Trillion in Deficit Spending funds over the past 100 years gone ???