So, the Fed created $7.77 Trillion out of thin air to loan to the banks at 0.01%

[Motown_Johnny]

http://savannahnow.com/exchange/2011-12-03/free-enterprise-77-trillion-spending-spree#.Ttooy7LNl8M

^snip^


The biggest economic news of this week, it seems, was not the ongoing struggle to save the Euro currency or the hopeful uptick in job creation. It was a blockbuster report based on freedom of information requests (long litigated in court) that the Federal Reserve had given out loans adding up to $7.77 trillion to rescue big financial institutions during the financial crisis.








Why is it we can't foreclose on those loans, take $7.52 Trillion of it and cut the national debt in half and then take the other $250 Billion and spend it on the infrastructure projects that create jobs?



Actually, why is our debt not already cut in half if that $7.77 Trillion is owed to us? Doesn't that automatically count as a credit on our balance sheet which should lower the net debt?


My ignorance must be overwhelming many of you and I apologize for that. Thanks for taking the time to indulge my curiosity/fantasies.





I think I need a shower.