Why Growth is Dead

[sailaway]

@macro2682

"Balance sheet is currently $2.8 trillion.  Assuming an average interest rate of 4%, this corresponds to cash injections of about $10B per month into perpetuity.  Certainly a good point that the liquidity help continues… But it’s a far cry from the $100B/mo that the market is used to under QE programs.

Macro,
There is something that I don’t quite understand in the theory that the interest would be used as cash injection. I thought that most of the interest paid to the FED was returned to the Treasury. So if this $10B (in your example above) are not returned to the Treasury then it has to create an additional $10B of T-Bond to fill the void isn’t it? What am I missing?