I think they mean "literally" when they say "literally". As in, if a twenty dollar bill gets rolled into a joint and smoked to ash, they then and only then print a new twenty dollar bill. Dividing it wouldn't make a difference if no money existed. If every coin was melted for scrap, every bill shredded for bird cage liner, then they would need to mint more money.
I think they mean "literally" when they say "literally". As in, if a twenty dollar bill gets rolled into a joint and smoked to ash, they then and only then print a new twenty dollar bill. Dividing it wouldn't make a difference if no money existed. If every coin was melted for scrap, every bill shredded for bird cage liner, then they would need to mint more money.