The Fed and the Debt Ceiling

The Federal Reserve has about 8 trillion dollars of securities on their balance sheet. Remember where did they get the 8 trillion dollars to buy those securities? They printed the money in the basement and they purchased securities. The Fed also pays interest on reserves. So what your chart showed was they were paying, they were taking in more coupon income then they were paying out an interest reserves so it was positive they remit that back to the treasury. That's flipped now. Where do they make up the difference? They got the printing press and the basement. It's basically what's happened. We have this next chart slide 94 Jim which I don't see anybody talking about which is this massive breakout in US