Given that the Fed bought close to $2 trillion in Treasuries with money created out of thin air, it stands to reason that the Fed has the power to forgive this debt. The Fed is the holder of the bonds, bills, and notes. Thus, the national debt can be reduced by $2 trillion, and we are nowhere near to breaching the "debt ceiling." Surely, if the Fed is paid back it will merely make the money disappear in the same way it made the money appear in the first place. So, there is, in reality, no need to pay back the money to the Fed because the Fed does not need it.
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