Yes, but if they ever do something like that, I think the troubles that many seem to be experiencing with banks by making demand would just go away.Originally Posted by David Merrill
That effectively happened in trust back in 1933:
Also, the article was illuminating in other areas. It talked about Bernanke creatiing debt free money with which to buy Fed credit, which was deposited with banks as Quantitative Easing. I find that fascinating. If Treasury is doing that, then the inverse is also possible: creating debt free money and depositing it in accounts through those ATMs.
Treasury is/was creating $85 billion per month, and selling it to the Fed for credit. Why would it do that? Why not simply redeem the debt outstanding? I'm just thinking out loud here, but if the national banks were insolvent, and needed a bailout, why not just redeem the debt? That would solve the bank's and the government's problem.
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