in that the bank does keep vault cash to meet window demand (not for bank spending) and the Treasury doesn't keep vault cash. Warren's stands in the sense in that what happens is marking up spreadsheets rather than the Treasury saving cash to spend later. The point is that most people don't know what happens behind the veil, so they imagine all sorts of things that aren't true, like the Treasury really being a "treasury" full of money, or not, depending on whether the budget balance is in deficit or surplus. "#1a. The government doesn't use my tax money for anything. The IRS is just a "currency sink" to bleed off heat in the economy. All payments to the IRS die at the IRS. The money isn't "sent" anywhere, my bank account is simply debited and my dollars die right there. They don't go to the war, the deficit, a slush fund or any other private or govenment destination anywhere on earth or any other point in the universe be it real or abstract. The IRS takes in X Billion and pays the US Government $0.00 Billion dollars and not one damn cent. Dollars check in, but they don't check out. It's a literal "The Buck Stops Here" scenario, whether it's greenback or electronic. It simply doesn't recirculate to anywhere. Not theory, but simple verifiable fact. " ...and Warren agreed! I just don't believe it's that simple (not that I have knowledge to the contrary). In the spirit of Marshall's