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A comment on I Got the Fed to Release Its 2011 "Treasury Default" Playbook. Parent comment

Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by JumpCrisscross on Tuesday November 07, 2023 @04:42PM (#38183285)
> it would be operationally forced to continue to ensure Treasury auctions and payments continued to go through

The Fed can't buy debt directly from the Treasury [1].

[1] https://www.federalreserve.gov/faqs/money_12851.htm

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Re:I Got the Fed to Release Its 2011 "Treasury Default" Play... by User23 on Tuesday November 07, 2023 @06:55PM (#38184861)
Sure there’s the primary dealer figleaf/kickback. Operationally though the Fed is just buying government debt with an extra step.

Also the Fed can just let Treasury run negative balances or any other number of accounting tricks.

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