who gets fiat money when it is first created?

[john M]

what is it that gives fiat money its value? central banks couldnt simply give money out to people, or it would have no value. i understand central banks can create money out of nothing, but from what i've heard they only lend money out, which eventually must be repayed.

i've read a lot of articles on money, and none of them really explain why fiat money is valuable, or how it gets into the economy

 

[tim b]

Think of consumer bank loans.. when the money gets loaned out.

Yes as loans get paid off less money gets created.

Also if the money supply was not systematically added to [expanded].. someone somewhere could not get a loan for school, or a car, or a house...

Does this help any?