Posted on 06/10/2012 8:41:41 PM PDT by Beave Meister
(CNSNews.com) - Since President Barack Obama was inaugurated in January 2009, the Federal Reserve’s holdings of U.S. government debt have quintupled, according to the Fed’s official monthly balance sheet.
On Jan. 28, 2009, a week after Obama’s nomination, the Fed owned $302 billion in U.S. Treasury securities. On April 25, 2012, the latest date reported, the Fed owned five and a half time that much in U.S. Treasury securities--$1.668 trillion.
That is an increase from January 2009 of $1.366 trillion—or 452 percent.
Under Obama, the Federal Reserve has become the single largest owner of U.S. government debt. When Obama entered office, entities in the People’s Republic of China were the largest holders, followed by entities in Japan. At the end of January 2009, China owned $739.6 billion in U.S. government debt and Japan owned $634.8 billion.
(Excerpt) Read more at cnsnews.com ...
That might be a bit inflationary.
So instead of issuing the money itself, the government borrows the money from a private bank which issues the notes and charges us interest. What a racket.
And then....wait for it....the "private bank" gives all its earnings, after expenses, back to the government. What a racket.
That's awful! How much did the "stockholders" earn on their stock last year? How much did the US Treasury earn from the Fed last year?
“There is no human way to fix this”
Do the same as Germany did, CANCEL THE NATIONAL DEBT!
Everyione holding T bills just is given a lifetime supply of toilet paper!
Since derivatives aren't debt, so what?
There is no difference on (money supply) inflation between the federal government creating money through issue and the federal reserve creating money through issue. The difference is that by having the fed do it, we also incur interest costs, which would not be the case through direct issue.
Poor Bush had to peddle debt it to China.
Baraq and Timmy just hand it to Benny B.
Poor Bush had to peddle debt to China.
Baraq and Timmy just hand it to Benny B.
A major difference is actions that could be undertaken if inflation takes off.
If the Treasury issued the money directly, there's nothing the Treasury can do.
If the Fed created the money, they can sell the bonds and extinguish the proceeds.
The difference is that by having the fed do it, we also incur interest costs
Which the Fed rebates, after minor expenses, to the Treasury.
answer: everything...
I know, the Treasury got about $80 billion.
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