Today's useless fact - Does the government create new money? If so, wouldn't this lead to inflation?

While looking for the answer to your question I learned the astonishing fact that the Bureau of Engraving and Printing produces 22.5 million bills (from $1 to $100 denominations) every single day. Talk about making money! The vast majority of these bills -- 95 percent -- replace worn out or damaged currency already in circulation, but the rest are used to "increase the money supply." As for the second part of your question, the money supply is related to inflation, but not necessarily the cause of it,-- at least Federal Reserve Bank thinks so. Check out the links in our Money category and Federal Reserve Banknotes category for more.