The Fed

[Speaker to Animals]

I need a better Jeep, then.

[Martin Hash]

Treasuries are virtually zero interest.

[Martin Hash]

The debt could be 100 times bigger. What difference would it make?

[Martin Hash]

What if you the Fed’s portion of the Debt, $4 trillion, was simply cancelled? Who would know or care?

[SuburbanFarmer]

What if you the Fed’s portion of the Debt, $4 trillion, was simply cancelled? Who would know or care?

The Fed holds more like $10 trillion, I think.

The banksters that make up the Fed would care. A lot. And since they're in control of monetary policy, they'd never allow it to happen.
You'd be taking $10 trillion or so directly out of the hands of the nation's top bankers.

Also, it should be noted that the Fedsters are running the Plunge Protection Team, and shorting the VIX in absurd amounts. So you could expect some pretty wild west moves in the stock market, as soon as they stopped that activity.

[Martin Hash]

No real banks hold that debt, it’s just an accounting scheme that holds no one responsible.

"It is as if the Treasurys bought by the Fed didn't exist. But they do exist on the Fed's balance sheet. Technically, the Treasury must pay the Fed back one day. Until then, the Fed has given the federal government more money to spend. That increases the money supply, thus monetizing the debt."
How Is the Fed Monetizing the U.S. Debt?

[SuburbanFarmer]

No real banks hold that debt, it’s just an accounting scheme that holds no one responsible.

"It is as if the Treasurys bought by the Fed didn't exist. But they do exist on the Fed's balance sheet. Technically, the Treasury must pay the Fed back one day. Until then, the Fed has given the federal government more money to spend. That increases the money supply, thus monetizing the debt."
How Is the Fed Monetizing the U.S. Debt?

Who collects the interest.

[Martin Hash]

No real banks hold that debt, it’s just an accounting scheme that holds no one responsible.

"It is as if the Treasurys bought by the Fed didn't exist. But they do exist on the Fed's balance sheet. Technically, the Treasury must pay the Fed back one day. Until then, the Fed has given the federal government more money to spend. That increases the money supply, thus monetizing the debt."
How Is the Fed Monetizing the U.S. Debt?

Who collects the interest.

There is no interest. This is how money is "printed."

[SuburbanFarmer]

No real banks hold that debt, it’s just an accounting scheme that holds no one responsible.

"It is as if the Treasurys bought by the Fed didn't exist. But they do exist on the Fed's balance sheet. Technically, the Treasury must pay the Fed back one day. Until then, the Fed has given the federal government more money to spend. That increases the money supply, thus monetizing the debt."
How Is the Fed Monetizing the U.S. Debt?

Who collects the interest.

There is no interest.

The interest is set when the bond is issued, no matter what the current rates are. 30-year bonds are still paying 10-20%, 10-years are still paying 5-10%.
On $20 TRILLION, that's no small amount of money.

That all comes due at bond maturity, and is collected by the holder. Meanwhile, it has to be set aside ahead of time. And every single time there's a bond auction, which happens every month.

[Martin Hash]

WTF? Your brain is broken.

But Google isn't.
GB6:GOV 6 Month coupon: 0.00
GB12:GOV 12 Month coupon: 0.00