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well, when the fed buys treasury they create cash, when they decide not to roll over bonds the treausry is giving them the cash, but in practical term somebody else will buy new bonds and the money through the treasury will go back to the fed that just destroy them (they can pretty much create...

At present the fed buy again the treasury bonds when they expire using the same money. When they roll off mean that the FED will get the money back when bond expire and will not buy again bonds with that money. THat mean they destroy the money (with a couple of click on a mouse)They'll probably...