Well, the point is that it is one or other policy that determines how much base money there should be. But even with a RBD, the amount of money that can be issued is not unlimited: it is limited by the amount of value that is available as the stuff that is to be bought by the base money issuer (the central bank).
Exactly, this put everything purchasable in the current society under the radar of FED, they could buy all the most valuable assets in the whole country. And this is especially effective during a crisis, where everyone want money
That said, some central banks have "automatic" targets. The ECB for instance has a CPI inflation target of 2%. It should in principle issue money such that that target is reached. They are panicking right now, because they cannot reach it.
CPI does not include assets, central bank could just buy assets without changing CPI. Even better, they are mostly buying debt nowadays, and purchasing debt will create a deflative pressure on the society. It seems a debt financing can raise the consumption for a while, but in the long run, that debt must be paid back by adding interest of almost equal amount of value. The deflative pressure following the debt financing is much harder to deal with, the only way to out is get more debt exponentially or a total default
Use 100 dollar to create 900 dollar debt by FRB, and create base money to buy these 900 dollar debt during a crisis, then you get 1000 dollar base money. Then create 9000 dollar debt using FRB, and then create base money to buy 9000 dollar debt during the next crisis, then create 100K dollar debt using FRB...
The whole scheme is just rooted from a simple practice of issuing base money backed by assets/debts, and use those money to buy more assets/debts. It seems each step is reasonable, but the result is huge debt and huge wealth gap between banking class and normal people