There is no basis in logic for what you are saying. The disaster doesn’t happen because even Treasuries beyond their payment date are discountable. Even more s

There is no basis in logic for what you are saying. The disaster doesn’t happen because even Treasuries beyond their payment date are discountable. Even more so at the lender of last resort. You are talking about the Fed refusing to do its job. How long do you think the people in charge of the Fed will stay in charge in that situation? The Fed is not God. It is the agent of the Treasury and it does what Treasury tells it to do - just as Bernanke said when he testified to Congress.