Jugjock Wrote:
Dec 01, 2012 11:38 PM
The Treasury takes the $16 trillion and pays off the national debt. At the same time, the Fed holds Yosemite as a priceless excess reserve asset from which its member banks can create an infinite amount of new fractional reserve checking accounts for new loans to all levels of needy government and special interest groups. At some future date, as a gesture of “good will,” the Fed sells Yosemite back to the Treasury for one dollar in exchange for huge undisclosed amounts of carry forward tax write-offs for its member banks. Everyone is now much richer and much happier.