What if the US gov. does not pay the Federal Reserve BANK, Inc. back for the TRILLIONS they are pumping into the New York Stock Exchange?
which & how many banks are they probably affiliated with worldwide? how they can punish or make the USA pay them back maybe?
the Federal Reserve BANK "creates" money & "loans" it to the US Treasury & they bill it to the taxpayers? or how it is paid for? and why?
- AleshaLv 71 month agoFavorite Answer
That is the function of a central bank, to create money in being when none exists. Even before the present situation the Federal Reserve Bank was holding nearly a trillion dollars in Mortgage Backed Securities that were purchased in 2008, to keep the financial sector from going into a tailspin. They are also holding 2.7 trillion dollars in non negotiable Treasury securities as part of Social Security Trust Fund and nearly a trillion of the same type of securities in the Civil Service and Military Retirement Trust Fund. There is no way the Fed will ever be able to sell the Mortgage Backed Securities, there is no way to price them. The trust funds are actually money already spent, liabilities against future revenue. The message here is that the Federal Reserve has been dealing in "imaginary money" for years. What they are doing now is nothing new.