[NTA]

OK, the FED has $4.x trillion on its balance sheet. These assets, some bogus highly overvalued stuff bought from banks and lots of US treasury bills purchased to keep interest rates low for the taxpayers are likely to be sold off over the next few years.

The question is what happens to the real money that is collected from the sale of these financial items originally bought with pretend digital money ?

 

[NTA]

Profits from Federal Reserve assets are just general revenue. They already generate 3% of revenue. I am guessing that the sale revenue would be treated the same way.

I'm sure the interest on the treas bonds they held would be legit income for the FED but certainly not the $trillions in principal (created with a keystroke).

Probably they will offset the return of principal on the bonds with the huge losses in gifts to the bank type purchases of their junk mortgage trances and such.

It is hard to wrap my head around debt money, especially when it can be so blatantly fiddled with.

 

[NTA]

The Fed has been regularly purchasing new treas bonds as the old ones mature.

A related couple of charts:
http://www.zerohedge.com/news/2017-...the+survival+rate+for+everyone+drops+to+zero)