[Toddsterpatriot]

You also I'm sure are aware that for the fed to create money they have to have the treasury create a corresponding asset (government bond).

What did the Treasury create when the Fed bought all that commercial paper?

I'm sure you also know that FRNs are liabilities to the fed.

How much interest does the Fed owe every year on those FRNs?

[rb22982]

What did the Treasury create when the Fed bought all that commercial paper

Effectively Federal Reserve Notes. My point was that the Fed just can't create money--it must do so with the Treasury.

How much interest does the Fed owe every year on those FRNs?

Theoretically nothing--until people come into to demand physical currency for their electronic or deposited currency and the Fed can't give them any. Of course it use to be gold/silver till we decided to go the inflation route.

[Lurker]

What did the Treasury create when the Fed bought all that commercial paper

Worthless paper. Next question.

How much interest does the Fed owe every year on those FRNs?

None.

What do I win?