The Fed does not buy securities directly from the Treasury.
Chairman Greenspan was eloquent in 1991 in opposing the Treasury's proposal that would authorize the Federal Reserve Banks to lend up to $25 billion to the FDIC to absorb losses sustained by the Bank Insurance Fund in resolving failed banks. He stated: "Not only would use of the Reserve Banks for funding the BIF serve no economic purpose, it could create potential problems of precedent and perception of the Federal Reserve. In particular, the proposal involves the Federal Reserve directly funding the government. The Congress has always severely limited and, more recently, has forbidden the direct placement of Treasury debt with the Federal Reserve, apparently out of concern that such a practice could compromise the independent conduct of monetary policy and would allow the Treasury to escape the discipline of selling its debt directly to the market. . . . In addition, if implementation of the proposal created a precedent for further loans to the BIF or to other entities, the liquidity of the Federal Reserve's portfolio could be reduced sufficiently to create concerns about the ability of the Federal Reserve to control the supply of reserves and, thereby, to achieve its monetary policy objectives" (FRB June 1991. pp. 435-36).
The Fed does buy Treasuries.
You bet, from Primary Dealers.
I can't believe you are still defending this system. Everything the worst doomsters is coming true. I hope this ends with central bankers hanging from lamp posts, like Mussolini.
No comment on #211? LOL!