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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: TideGlider who wrote (155304)	4/25/2013 1:23:42 PM
From: Wayners	Read Replies (1) \| Respond to of 224864

A lot of people believe the Federal Reserve is part of the Federal Government and that they HAVE to keep buying the debt as a last resort. It's completely untrue and one can read statements from the Federal Reserve themselves that say they are not obligated to keep buying Federal Government debt. They have doubled down on their bets as well. The Federal Government has borrowed Federal Reserve Notes from the Federal Reserve. The Treasury can print Federal Reserve Notes to sell at printing cost to the Federal Reserve. That doesn't repay the loans. The Treasury can create Treasury Notes, but hasn't done so since the 1960s and that was very limited. You have to go back a long time since the Treasury actually created money nearly 100 years ago. Notice that the Federal Government owes Federal Reserve Notes not Treasury Notes, so giving the Federal Reserve Treasury Notes doesn't pay back the debt. If the Federal Reserve isn't paid, what is their recourse against the Federal Government to be paid? I think they would go to court to get a judgement and it might be something like the World Court that could rule the Federal Government has to cede real assets like land, technology, and weapons to make good on the debt. Regardless of whether Government Bonds are really backed by assets, all it takes is a Judge's "interpretation" to say they are backed by assets and to pay up.