Why won't the "Fed" simply cancel/retire its $4 Trillion US debt balance sheet ? (Congress, military)

[Snowball7]

1. The Federal Reserve supposedly derives its powers
at the express pleasure of the U.S. Congress.
2. The Federal Reserve Chair is appointed by the
U.S. President.
3. The Federal Reserve digitally creates real dollars
and uses them without Congressional oversight.
4. The Federal Reserve is currently carrying 4 Trillion
in U.S. debt.
5. Everyone on TV wants to know how the Fed will unwind
this balance sheet, by selling the debt to the markets,
or by holding the debt to maturity.
6. The U.S. taxpayer is paying interest on money created
at zero cost with full benefit of interest paid to the
consortium of banks headed by the Federal Reserve.
7. The Federal Reserve can never really take a loss, because
it always has a zero cost basis.
8. If the Federal Reserve serves American interests, why
don't they talk about canceling the debt off the U.S.
deficit by retiring the debt securities they hold ?

discuss.

[Snowball7]

[T-310]

Originally Posted by Snowball7

1. The Federal Reserve supposedly derives its powers
at the express pleasure of the U.S. Congress.
2. The Federal Reserve Chair is appointed by the
U.S. President.
3. The Federal Reserve digitally creates real dollars
and uses them without Congressional oversight.
4. The Federal Reserve is currently carrying 4 Trillion
in U.S. debt.
5. Everyone on TV wants to know how the Fed will unwind
this balance sheet, by selling the debt to the markets,
or by holding the debt to maturity.
6. The U.S. taxpayer is paying interest on money created
at zero cost with full benefit of interest paid to the
consortium of banks headed by the Federal Reserve.
7. The Federal Reserve can never really take a loss, because
it always has a zero cost basis.
8. If the Federal Reserve serves American interests, why
don't they talk about canceling the debt off the U.S.
deficit by retiring the debt securities they hold ?

discuss.

The Chinese bought the debt banking on the good faith and credit that the US wouldn't default. But that is what you propose. Wars have been started for lesser reasons.

[CDusr]

The simple answer is that the entire market is debt-based. Not just the FED investing in keeping everyone in debt. They are now starting reverse repo, as they taper. They increased it from 1bil, to 3bil, to 5bil. It was actually, about 300bil, end of year, from day before. Haven't checked recently.
WTF Chart Of The Day: Fed Soaks Up Record $200 Billion In Year End Excess Liquidity

[katzpaw]

So.... screw the Chinese, screw retirees, screw military pensions, screw local governments, and screw American investors...

US debt is held by:

8% China
7% Japan
19% Other Foreign
34% Total Foreign

16% Social Security
12% Federal Reserves
13% Other Federal (Military and Gov't pensions/disability…)
41% Total Federal

3% State and Local Gov'ts
6% Mutual Funds
17% Other - US banks, private investors, pension funds...