“In Congressional testimony last week, Fed Chairman Ben Bernanke slipped something in that no one much noticed. He said that the Fed might eventually choose to exit from its current monetary expansion binge, not by selling US government securities, but by letting them mature. So what happens if the Fed holds a bond to maturity? In that case, the Fed presumably receives the principal payment from the Treasury and then sends that back to the Treasury too. In effect, the government has simply canceled its own debt. Bernanke has in effect announced an intention to cancel US bonds, and it doesn’t cause a ripple.”
http://bastiat.mises.org/2013/03/lets-look-a-little-more-closely-at-what-bernanke-told-congress/
Related posts:
Jeff Sessions Should Ask Cancer Patients about Cannabis
Whose "Provocative Actions"?
Sovietizing the Homeland Security State
500 Years Shows that Mass Spying Always Aims at Crushing Dissent
Anti-cocaine vaccine research edges closer to human trials
Yemen: American Foreign Policy in Action
More and More of What We Do Depends on Government Permission
Northern Michigan Secession
Marijuana ad pulled from jumbotron at NASCAR Brickyard 400
Bitcoin Gains Credit Union Cred
Governor Moonbeam and Cronies at Work in California
Trump wants a total ban on German luxury car imports
Internet Drug Dealers Are Really Nice Guys
Obamacare tax on unearned income cannot be offset by foreign tax credits
Argentina Just Lost Huge To A Bunch Of Hedge Fund Creditors