Included in the deal is a boi with 4 trillion in government debt and a Fed savings account. The bot will erase a portion of its holdings whenever the Fed S&L process makes a market gain. Otherwise the bot earns interest from Treasury and places that into savings, which will be part of erased account over the contract period. In 15 years, plus or minus two, the bot plans to be broke. The effect is to make the Fed a loser, but it is non profit and all parties are aware of the Weiner process of exponents. The tendency would be to treat this as a variable Fed fee. It is about two percent on debt and bearer cash outstanding., direct inflation.
It is a money tax, we stick ourselves with it for 15 years because we are bozo voters and we did not have the smart small state governors in those days. The New Fed is completely divorced, except S and L all know about the variable tax. The New Fed still gets monopoly tax dollar status. But it has to obey principles of automated portfolio balance consistent with the tax. Round robin market access, Fed market risk is variance one, entry and exit fees to equalize risk.
It is not a trick, it is the fair way to declare losses from the past. We have a negotiation with my clients, the Antificants.
The smart small state governors are thinking, hey, if we can lock in some state cash, then it might work. But they know what it means, manage the senators so they manage the programs with much less bias.
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