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To: DoodleDawg

No, the federal government will pay the treasury $3.25 trillion per year. The Fed acts as the agent for the treasury but the debt is serviced through tax revenue.

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The Fed does, however, pay any profits it earns back to the Treasury Dept. Since 2008 it’s remitted somewhere around $700 billion in profits. Overtime this mitigates the cost of interest payment on bonds and maturing bonds.


51 posted on 08/01/2020 4:40:02 AM PDT by Bishop_Malachi (Liberal Socialism - A philosophy which advocates spreading a low standard of living equally.)
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To: Bishop_Malachi
The Fed does, however, pay any profits it earns back to the Treasury Dept. Since 2008 it’s remitted somewhere around $700 billion in profits. Overtime this mitigates the cost of interest payment on bonds and maturing bonds.

That money goes into the general revenue fund. Divert that $70 billion or so a year to the debt and you would have to offset spending elsewhere. Also a substantial part of Fed revenue comes from the Treasury instruments it holds. Make those negative interest and before long the Fed won't be paying the government anything.

60 posted on 08/01/2020 5:40:06 AM PDT by DoodleDawg
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