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There are two answers to this question. 1) The Federal Reserve purchases U.S. government bonds and holds them. The total holdings currently are over $700 billion, so over the entire almost century of the Fed's existence, it has advanced $700 billion to the U.S. government. There is a complication...
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In the midst of our economic slowdown, the U.S. Treasury Dept has issued what they are calling the "Blueprint for Financial Regulatory Reform". The highlights, as given by an article on Yahoo!'s website , are as follows: --designate the Fed as the primary regulator for market stability...