The Federal Reserve can save the Nation

I am watching CNN discuss the possible default if the Radical Republicans do not budge and the President does not allow the gutting of Social Programs. No one is playing with a full deck. No one is discussing the power of the Federal Reserve Banks. 

The Federal Reserve Banks are in no way bound by any Law that establishes a Debt limit. 

They are in fact bound by law to prevent the value of Government Debt being drastically devalued. They have the power to buy all of the Debt that we owe China, Japan, Europe, Oil exporters, and anyone else owning Government Bonds.  If it does it will actually earn a huge profit in interest when the Government gets its House  in order. That profit will (by law) be returned to the Government and help reduce the deficit.  The current interest will remain low and the economy will have a chance to recover.

It is only the Treasure Department that is prevented by law from borrowing money. If all the money they owe is held by the Federal Reserve Banks, nothing needs to happen. The Reserve Banks simply holds the debt on its books and waits. The dollars that the Fed creates to buy the Bonds will go out into the world economy to be spent or held in currency accounts. The Social Security has enough Bonds to sell the Fed Banks and operate at full steam for years. with no input from the Government if necessary.

When there is a short fall in Fica Tax revenues the difference is made up by
cashing in Treasury Bonds owned by the Social Security Trust Fund.
Since The Treasury cannot sell Bonds to pay off the Social Security Fund Bonds,
the Bonds will have to be sold on the Secondary Auction Market of Treasury Bonds.

The Government will be able to continue operating until after the election. If the voter decide to let the Republicans rule the Nation and destroy it, so be it. If they decide they want to save Social Security and Medicare the Democrats will be reelected and the Nation will survive.  That is how Democracy works.