Deficit spending is the Fed purchasing Treasury securities with book-entry imaginary credit with the govt paying bills with the FRN credit [inflation]. The Fed then auctions the security and covertly pockets the profit. Ref. 31 CFR §375.3. All profit of the Fed legally belongs to the govt. The auction accounts have never been audited. The Fed issued debt was originally labeled as Redeemable in Gold [and Redeemable in Lawful Money] but bogus legislation 31 USC §462 in 1933 labeled it as a Legal Tender [a debt of the people].