Your missing the big picture here. You see the Government issues a note to the Fed Reserve who by the way I think JPMorgan have some ownership in. Ok the Fed gets the note and prints the money and gives it to the treasury. The treasury funnels it through the banks , probably JPMorgan to buy bonds and stocks etc. The Government issues JPM with a bill. JPM then takes the money out of its big pile, all the money is together but they don't use the Feds money oh no. Its there money and they pay the Government 13billion and so the Government gets operating money to help them stay afloat. 20billion in 13billion out, simple JPM makes 7billion profit, the government gets 13billion and the tax payers ahh umm well their just proud to be American.
Please treat the above as pure entertainment value only and none of it may be the truth but with the fullness of time and certain macro and economic outcomes may indeed have the Feds balance sheet acquiescing with a reasonably and well constructed set of guidelines which when viewed under the light of a blue moon may indeed be in harmony with the stated balance sheet.
