No it doesn't.
The Fed creates money because the constitution said congress had to and they're doing it though the Fed. The Fed's money printing doesn't 'permit' overspending any more than it 'permits' the phases of the moon. Congress would overspend no matter what the Fed did.
And the Fed has made a total hash of it.
If the Fed kept the money supply stable, the government would have to go to the markets for its borrowing. Absent Fed manipulation of the interest rate, the cost to borrow would be much higher than now.
I realize that's no guarantee it wouldn't overspend, but the crisis would come much sooner. As it is now, the borrowing is next to costless [to the government]. There is a cost, of course, but we pay it through lost purchasing power.
“The Fed creates money because the constitution said congress had to “
Wanna show us where the Constitution says the fed has to use fiat currency? I am pretty sure the founding father warned us against using fiat currency and wanted the fed to only use gold and silver as a currency base. I always do my own research but I can’t for the life of me find where the Constitution says the Congress is to create a federal central banking system and print fiat currency. Can you give us the Article and Section for that?