Taxpayer [public exchequer] is on the hook due short-selling of Treasury Securities by Banks

It is well-known that banks face survival risk (panics and runs) due to shorter duration of their liabilities deposits and short-term debts) than their longer-term assets like 30-year mortgage loans. The ways mitigate this risk include the following:

 Federal Reserve stands ready to lend banks to preemptively avert panics and runs.

 Banks short-sell Treasuries to generate cash, which reduces duration of their assets. Short-makes them independent of the Federal Reserve. The short-sold Treasuries are not issued backed by the US Treasury; they are artificially created by the short-seller with tacit permission regulators. Such independence must have prompted the Goldman Sachs CEO-turned Treasury Secretary to propose closing down the Federal Reserve in 2008. His proposal was eerily consistent with another prominent Goldman Sachs executive, Fischer Black (now deceased former professor University of Chicago), suggesting inside the Federal Reserve board room to shut down the

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