A simple Fiscal Question
In light of Bernanke's commitment to QEinfinity the question of concern is what will be the ultimate exit strategy. My thinking is if the Fed keeps buying Tbills and MBSs why not use the income off those to pay off the federal debt? What am I missing here? The debt has already been factored in and spent. Paying it off with QE income resolves a twofold issue. First, the money is removed from circulation, and second it pays off old debt.