80 percent of treasuries are now purchased by the fed 85 billion a month so how does the fed pay interest on a bond it buys with FRNs it creates digitally
when you monetize your debt your are insolvent
the expansion of the balance sheet isn’t a good thing, fractional reserve banking is our undoing but hell you’re an expert and I’m just a simple guy who must balance his budget every month but hey deficits don’t matter and debt is simply us paying ourselves. You sir are part of the problem, keep whistling past the graveyard but I am opting out of the Federal Reserve Ponzi scheme
TTFN
That's why it returns the interest to the Treasury.
the expansion of the balance sheet isnt a good thing, fractional reserve banking is our undoing
I agree with you 100%. We do not need a central bank; it was created solely to enable the government to fund itself without resorting to tax increases.
I do disagree with your interpretation of the Wikipedia article. The Fed does not take a profit of 6% on the entire money supply. At the current supply of money [M1], 6% would be $164.5 billion.