pdog
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I know the fed cannot buy bonds directly from the Treasury. In otherwords, the treasury cannot issue a bond and have it instantly converted to cash in the treasury's account.
But are there purchases available to the fed that would indirectly provide usable money to the Treasury to service debt. I am exploring some of the "printing money theories" and trying to understand our current law.
Note, I am NOT claiming that we can print endless amounts of money, no suggesting that we do so. I am not saying there are not inflationary or confidence risks. This is not what this thread is about at all. I'm just trying to understand the mechanics in a vacuum, so please stay in the academic realm and avoid the political B.S. in this thread.
But are there purchases available to the fed that would indirectly provide usable money to the Treasury to service debt. I am exploring some of the "printing money theories" and trying to understand our current law.
Note, I am NOT claiming that we can print endless amounts of money, no suggesting that we do so. I am not saying there are not inflationary or confidence risks. This is not what this thread is about at all. I'm just trying to understand the mechanics in a vacuum, so please stay in the academic realm and avoid the political B.S. in this thread.