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<p>[QUOTE=&quot;Cloudsweeper99, post: 1218585, member: 3011&quot;]Yes, it makes a lot of sense and may end up being the choice when the federal government is backed into a corner and runs out of options.&nbsp; In effect the government would be nationalizing the Fed and making it a branch of the Treasury.&nbsp; This would allow the Treasury to cancel all of the Treasury debt held by the Fed without increasing the money supply.&nbsp; The external debt to US citizens, institutions and government such as China would still be outstanding, but the total would be far more manageable.&nbsp; If this or some variation of it is on one of the back pages of the US Treasury playbook, then QE2 starts to make more sense.&nbsp; The more debt the Fed buys, the more that can be retired.[/QUOTE]</p><p><br /></p>

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