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A comment on Fed Prints Another $205B This Week, M2 Growing at Fastest Pace on Record. Parent comment

Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by touktouk on Friday April 24, 2020 @11:47AM (#22969273)
Defaulting on the debt means anyone owning treasury bonds lose their money.
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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by touktouk on Saturday April 25, 2020 @08:26AM (#22977576)
The liabilities of the Fed [0] are money in circulation, reserves accounts of banks (mainly to meet requirements) and the deposits of the Treasury. Besides the fact that it is not clear why the Fed may collapse when they can create money to pay back their liabilities, I am not sure what it would mean for the Fed to default on the bills and coins in circulation (?) or to wipe out the accounts of banks when those very banks are legally bound to hold money in those accounts.

[0] https://www.federalreserve.gov/monetarypolicy/bst_recenttren...

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Re:Fed Prints Another $205B This Week, M2 Growing at Fastest... by touktouk on Sunday April 26, 2020 @05:48AM (#22985913)
This does not address my points.

- A large chunk of the Fed liabilities are coins and bills. What does it mean for the Fed to "default" on those coins and bills?

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