Forum Post: The Fed has been kiting checks since at least 1971.

Some might argue 1913. Some might say 1933. A few might say 1924. However, the check kiting is a fact.

So.. due to lack of consideration, the Treasury owes nothing to the Federal Reserve.

A couple of points to make:

• National debt goes to $0.
• Personal income taxes were originally designed to pay for the T-bonds, so personal income taxes can easily be repealed.
• The Treasury's fiduciary responsibility to savers of T-bonds can be made good through Congress.
• Since consideration was conveyed when the Fed sold the T-bonds to investors and banks, the T-bond market can remain afloat. (It will likely unwind naturally.)