This boils down to "if you owe the bank a million dollars, the bank owns you; but if you owe the bank a hundred billion dollars, you own the bank." This is because if you default on the big amount, the bankers go bankrupt, so you effectively control the bank.
Because the Treasury owes the Fed more than they can afford to lose, the Fed has to either give up the game entirely by declaring bankruptcy, or help the economy recover. The US economy used to be the Fed's puppet, but the puppet has grown so large that the Fed's strings no longer work, and the Fed must now move according to the puppet's commands instead of the other way around.
(This is how a number of Trump's business acquisitions were handled: when the debt is properly organized, at bankruptcy reorganization time the bankers have to play nice so their golden goose doesn't get cooked.)
This boils down to "if you owe the bank a million dollars, the bank owns you; but if you owe the bank a hundred billion dollars, you own the bank." This is because if you default on the big amount, the bankers go bankrupt, so you effectively control the bank.
Because the Treasury owes the Fed more than they can afford to lose, the Fed has to either give up the game entirely by declaring bankruptcy, or help the economy recover. The US economy used to be the Fed's puppet, but the puppet has grown so large that the Fed's strings no longer work, and the Fed must now move according to the puppet's commands instead of the other way around.
(This is how a number of Trump's business acquisitions were handled: when the debt is properly organized, at bankruptcy reorganization time the bankers have to play nice so their golden goose doesn't get cooked.)