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That’s Kimberley Amadeo’s opinion which is following the unaudited releases of the Fed. She has no way to verify if the information is true. She is not an authority and her statements reveal confusion.

She can’t keep her terms clear and she contradicts herself:

‘When the Federal Reserve buys these Treasuries, it doesn’t have to print money to buy them. It issues credit and puts the Treasuries on its balance sheet. Everyone treats the credit just like money, even though the Fed doesn’t print cold hard cash.”

“The Fed doesn’t buy Treasuries directly at auction. Instead, it purchases them from its member banks.It does this through an office at the Federal Reserve Bank of New York.’

The Fed buys Treasuries? The Fed doesn’t buy Treasuries?

She does this throughout. She is merely toting the Fed’s narrative.

What does ‘printing’ have to do with computer creation of digital funds? What does it have to do with anything about the subject of debt holdings? She’s talking to an audience of high schoolers. She is not to be taken seriously.

The Fed is a master at putting out bubbles in funds and directing attention to red herrings in press statements. The press releases of the St. Louis Fed are designed to persuade the lay public the Fed knows what it is doing when in fact Fed related persons do not even know what it happening within itself.

The SS Trust holds no treasuries at all. To say it holds such is analogous to saying GE Appliances Division holds GE Corporation bonds for GE Capital. It is a ledger entry and not part of the treasury debt. Social Security now takes in less revenue than it pays out in SS payments and the gap is growing. The SS Trust Fund has no funds to purchase treasuries.

Amadeo says the Fed ‘removes’ treasuries but that is a red herring. The Fed cannot remove treasuries when they create the funds by which the market purchases treasuries, and they create the funds faster than they receive treasuries as payment for the funds they create. Make them more valuable? Amadeo is so wrong that to quote her on anything is as ridiculous as quoting Chris Rock on the origins of the universe.

To quote real experts in the matter of bonds, start with Ray Dalio, and like persons. Beware of such bond aggregators as Bill Gross because he has to be careful in his statements so as not to cause a media meltdown of his investor’s holdings, i.e., he’s not free to speak plainly. He is on a glide path to dump all US treasuries which is the telltale sign of what he really thinks.

Quit reading Amadeo as if that is gospel. Spare us the high school lectures of Fed fantasy writing. They are not to be trusted. There is a reason why Trump has called for auditing the Fed and it’s not because they are performing forthrightly. They are manipulators, liars like the Clintons where they look for a good narrative to latch on to, one that will both confuse the public and shield them from disclosure of their malfeasance and incompetence.