$1.6 Trillion 80 million households = $20,000 for each family

By june the federal reserve will have bought 1.6 trillion dollars worth of US treasuries. How the fed does this is magic.

You see the treasury issue a 10 year note or promise to pay back the amount plus interest after ten year. Normally a county/person buy these with money they earned making something or providing labor.

The federal reserve is different. They are buying these treasuries with money they create out of thin air. They did not produce anything or provide labor, they just create money give it to the treasury and then own a note for the value of the money they just pulled out of their ass.

Now joe six pack has no idea what is happening to his money and purchasing power. But if you think of it this way it may makes sense.

The federal reserve gave the treasury $1,600,000,000,000 so the government can go spend it on the shit they do. What would happen it the federal reserve gave the money to the people of the US. $1,600,000,000,000 to 80 million households. Each household would get $20,000.

The way it is happening today is the federal reserve is talking $20,000 per household and placing it on their balance sheet as an asset. An asset is something you own, so the federal reserve owns it and can do whatever they want with it. After ten year the treasury (tax payers) have to pay the $20,000 per household plus 10 years of interest all to a federal reserve that created it out of thin air in the first place.