Who Creates Money

So far in fantasy land:  All the money in the USA exists as serialized digital record individually denominated in the amount of one on a server farm located at Fort Knox.  That record has provision for the current owner in possession and a link to history of the last owner.  All owners are financial entities registered to use the system. 


Banks have the power create money as debt as an agent to whom the government has granted but not ceded their sovereign right to create money.  It is the Constitutional right of the government to create money and that right should be reclaimed from the Federal Reserve Bank.

Government creates money by assigning new serial number to denominated money on the Fort Knox server to be spent by the government into the economy.  Once created that money exists forever and can only be withdrawn from circulation and held in suspense by the government as necessary to maintain zero inflation and full employment.  Taxes draw money from circulation to the extent it is a economic management tool used to maintain stability.