I'm not sure if this is the right site to ask this question. If it's not, please point me in the right direction.
So, if the FED is the only institution that can increase the monetary base (create both, digital and paper money), how can any institution that borrows from it (mostly banks) satisfy its interest requirements? In other words, how can you pay back more than what left the FED?
A dumbed down example would be: Only I can create money, I (the FED) loan you (the banks) $10 expecting $11 back ($10 principal + $1 interest). Where will you get that $1 from to pay me the interest if there are only $10 in existence?
This question can be easily answered if there were any way in which new money can leave the FED without being paid back. Are there such transactions I don't know about?