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The Fed creates money out of thin air. Still, it does not mean the bonds bought by the Fed are foregone. The US Treasury still has to pay all the interest and p
by credit_guy 5y ago
The Fed creates money out of thin air. Still, it does not mean the bonds bought by the Fed are foregone. The US Treasury still has to pay all the interest and principal on them.
- sjg007 5y ago>has to pay all the interest and principal on them. With the money they create out of thin air.
- missedthecue 5y agoFor a while now, the Treasury has been borrowing to pay the interest it owes, and everyone knows that we don't actually pay down the federal debt, we just roll it over into new debt.