The New Fed could borrow money, take a loss

The pit boss steps in, issues its own debt, which does nothing except lock up deposit accounts and pay depositor interest. Those interest payments are currency risk loss, gone forever.  But they do not count against the default contract, is the problem.

The default contract is the line of symmetry the New Fed needs to get the long term bond holders reconnected, eliminate that dip at 5 year.  The curve segmented, too much debt and the roll over has been quantized into its own queue and color. 

This is classic quark theory, aliased sampling result in Gibbs phenomena which can, with some probability, be quantized.  We have quantized the rollover machine, it belongs to a separate liquidity net, and the nominal debt cartel is likely breaking up.  MMT time.

We need a counter line o symmetry, the default machine built around a contract renewal point.  This is all well known , repeatable history. Noting unusual we have altered our Swamp debt machine many times. No brainer, just caution for the this 'time is different crowd'