A Money Supply Question

From: VHarris001 (vharris001_at_aol.com)
Date: 09/04/04 

Date: 04 Sep 2004 17:41:04 GMT

I have a fair understanding of how the existing US money supply is expanded and
contracted, but I'm trying to figure out, given the extant system, how the
government would initiate the monetary system today, if it were starting from
scratch.

Suppose the Constitution, Federal Government, the Treasury Department, and the
Federal Reserve (and other appurtenances) have just this morning been created,
no taxes have yet been collected, but congress is eager to *deficit* spend it's
first $100 Million to fund government payroll before lunch recess, what are the
transactions that will occur?

Of course, congress must pass the law declaring unbacked Federal fiat money and
setting fractional reserve requirements, but what are the transactions and the
book entries that would start the process?

V Harris