The Treasury creates a T-bond and sells it to the Fed for $100,000. The Fed then sells it in their "Open Market" operations for current market price. $144,000. Nice $44,000 windfall there Fed. If the US Treasury simply cut out the middleman, that's an instant 44% return. Now. If the Treasury were smart, they would do exactly that and dump the entire allowed T-bond creation (aka debt-ceiling) on the bond market. That's quite the windfall for the Congress' bank account. Interestingly enough, for the lawyers out there, nothing of value is conveyed at the time the Treasury sells the bonds to the Fed. Lack of consideration null and voids that contract, so the Treasury owes nothing on prior sales. That also means a swipe of the pen from a competent judge can void all bonds sold to the Fed this fiscal year. Aftermath of this is transfer all debt to the various players in the bond market. 44% return (assuming the computers kick in and buy) and $12 trillion in Congress' bank account. I would suggest running the Treasury's check machine at that point and printing out a healthy check to each and every American (including children). Cut out the middleman. Pretty simple. Anyone going to assassinate the Secretary of the Treasury? I doubt it. Publicize the trade.