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Not quite.. The Fed != The Federal Government. It's more like.. The Fed is issuing debt, and we (American taxpayers) are (the suckers) on the other side of the
by davvid 11y ago
Not quite.. The Fed != The Federal Government. It's more like.. The Fed is issuing debt, and we (American taxpayers) are (the suckers) on the other side of the equation.
- neffy 11y agoActually, the Fed typically runs at a profit and pays it into the US Treasury. http://www.federalreserve.gov/newsevents/press/other/20150109a.htm http://www.federalreserve.gov/newsevents/press/other/2015010...
- fiatmoney 11y agoThey "run at a profit" because they make "interest income on ... U.S. Treasury securities...". I.e., they are paying the Treasury with money they received from the Treasury, or from bonds guaranteed by the Treasury.