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View Diary: Carnegie Mellon Professor: No bailout needed (305 comments)

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  •  I guess you aren't aware.... (0+ / 0-)

    ...that the Fed can never go bankrupt.

    It can and does create money out of thin air to buy U.S. Treasuries, which are the bonds that the Treasury Department issues when it wants to borrow money.  That is how it increases the money supply when it wants to see a lower interest rate.

    It happens all the time.

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