You’d think the US government could cancel the “debt owed to the Federal Reserve”. Then the feds could stop the quantitative easing and our tangental spiral to financial collapse. Or else it’s debt curve, have we got an asymptote in store for you.
You’d think that, but those T-Bills can’t just be ‘liquidated’. What would other T-Bill holders, many foreign, say? As for the MBSs, well, remember the big bubble and all of those ‘credit derivatives?”
Frankly, touting that $4 Trillion like it is an asset is evil, IMO, especially since it was nothing but unbacked, unsecured credit to begin with.