[BfloGuy]

80 percent of treasuries are now purchased by the fed 85 billion a month so how does the fed pay interest on a bond it buys with FRNs it creates digitally

That's why it returns the interest to the Treasury.

the expansion of the balance sheet isn’t a good thing, fractional reserve banking is our undoing

I agree with you 100%. We do not need a central bank; it was created solely to enable the government to fund itself without resorting to tax increases.

I do disagree with your interpretation of the Wikipedia article. The Fed does not take a profit of 6% on the entire money supply. At the current supply of money [M1], 6% would be $164.5 billion.

[reluctantwarrior]

I will go re reread the monster from Jekyll Island to check on this, but I do believe it does pull 6 percent on the M1