Not quite, The fed is a branch of the Gov,
The Federal Reserve is not a private bank it works for and is part of the U.S Gov., whatever profit it makes it must return to the USA treasury the first of every year.
If it wanted to it could buy all the outstanding T-notes (treasuries) and burn them essentially ending our debt.[/quote]
So let’s see: The Gov prints T-bills, creates debt and uses up that debt for defence/infra/medicare/whatever. This debt represented as a t-bill is sold to FED which is another part of the Gov.
And this other part of Gov can simply burn this off thus ending our debt.
This sounds like a really good deal. {Dumbrenter scratching his head here} So may I ask what exactly is this problem with debt? Why do we have CNBC anchors and folks on this board hyperventilating over such a good deal.
We are in a unique position in human history where one country’s printed note is good in any corner of the world. This has never happened before and once we screw up, this will never happen again. This is why we have to make this count and screw up big time. There will be no second chance to screw up again.
