A better term for this would be that by so doing the Government "spends money into creation",

Private banks do just the same when they credit the accounts of suppliers; staff; management; shareholders; or anyone who has sold them a financial or other asset.

When they are doing this they are instantaneously creating the demand deposits for the recipients, in just the same way they instantaneously create demand deposits when they create credit as interest-bearing loans.

If a private bank can do it, why not a public bank?

"The future is already here -- it's just not very evenly distributed" William Gibson