Once a product has been created, it can move wherever it wants, in a free market. In a Command economy, decisions are made centrally as to what is going to be produced, and where it is going to be allocated. From there, local bosses can make specific decisions.
The Federal Government really doesn’t have the power to create money. It can BORROW money from the Fed, but it can’t, technically, create it. For appearance sake, our actual cash money and coin is printed by the Treasury, but it is placed into circulation by the Fed.
Banks are required to keep a certain amount of their “Reserves” (it’s not clear to me they don’t loan everything out every day, then “top off” using Federal Funds money to stay solvent at midnight; that process could continue forever if they borrow it at 0%, the current targeted rate, and loan it out at virtually anything higher than that, provided the Fed didn’t stop them) at the Fed. To get cash, they just convert ledger money to cash money. That ledger money still flows, sooner or later, from money the Fed created, either as paid out by the Treasury, or as it flows out of the big banking houses they finance directly with Open Market Operations.
Thus, ultimately, money creation and direction is in the hands of a very small elite, not elected by the People, and not accountable to any of our elected representatives. This is a Command economy. It is not different in principle from a small committee determining how much wheat will be produced this year, and who gets an allocation.
This situation is categorically antithetical to free markets, and to the transparency any self respecting, self governing people would expect of those who are empowered to do things, supposedly on their behalf.