• Che's Motorcycle@lemmygrad.ml
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      7 months ago

      I think this is the key bit:

      After covering its day-to-day operating expenses, the central bank is required to send the money it earns on its securities portfolio to the Treasury, where the revenue helps offset federal deficits.

    • ☆ Yσɠƚԋσʂ ☆@lemmy.mlOP
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      7 months ago

      Basically, debt payments end up reducing overall operating budget. So, the bigger the payments the less money there’s left for doing anything.