If you look at the JavaDoc for System you'll see a public variable called out with a type of PrintStream. If you follow the link to PrintStream you'll see all the things it can do. So when you say System.out.println() you're calling the println() method on the PrintStream that is provided for your pleasure by the System class.
A good question is never answered. It is not a bolt to be tightened into place but a seed to be planted and to bear more seed toward the hope of greening the landscape of the idea. John Ciardi
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Building a Better World in your Backyard by Paul Wheaton and Shawn Klassen-Koop