How will U.S. PAY for the $$TRILLIONS" Stimulus packages (federal government, claim)

[Mach50]

[InformedConsent]

https://www.youtube.com/watch?v=78-BlZXm7wA

[Hoonose]

Originally Posted by InformedConsent

No, the *principal* amount of the redemption of a $10,000 Treasury (example I gave) owned by the FR is NOT returned to the TGA after the TGA has paid the principal upon maturity or to extinguish the debt.

Then the Fed could create the money from thin air, buy Treasuries, then redeem them and keep the proceeds? We would be enriching the Fed beyond their wildest dreams!

[InformedConsent]

Originally Posted by Hoonose

Then the Fed could create the money from thin air, buy Treasuries, then redeem them and keep the proceeds?

No. If you had read the FR article I previously posted that explained how redemption works, you'd know that BOTH the Fed Gov's TGA AND the FR's assets are reduced by the amount of the matured/paid off (redeemed) Treasury. Why are you not grasping that reality?

https://www.federalreserve.gov/econr...2017099pap.pdf

[Hoonose]

Originally Posted by InformedConsent

No. If you had read the FR article I previously posted that explained how redemption works, you'd know that BOTH the Fed Gov's TGA AND the FR's assets are reduced by the amount of the matured/paid off (redeemed) Treasury. Why are you not grasping that reality?

https://www.federalreserve.gov/econr...2017099pap.pdf

I'm working on it.

'Importantly, the Federal Reserve does not receive cash for the maturing Treasury securities; instead,

"the Treasury’s claim on the Treasury General Account (TGA), a liability of the Fed, is decreased."'

With electronic money this is probably the same end result. That last line is not so easy to get one's head around.

[tickyul]

PAY FOR, LOL, when it is all said and done, just slap the costs onto the other 23-trillion and call it a day.

[ecko_complex24]

We won't pay it off. What do you mean, that is how this whole ponzi-scheme works. It runs off of debt, there is no paying off the debt. We will be lucky to pay the interest on the debt at this point. With a few key strokes on the computer, the value of your money can go down significantly.

[GoldenPineTree]

The Fed rate is 0 so loaning ourselves money is effectively free. That debt can stay forever without accruing interest.

[Scrat335]

C'mon man, don't worry about it. Your great,great,great,great grandchildren will pay for it.
Don't worry be happy!!!!

[jaminhealth]

Money printing machines are working overtime.