Top Customer: Under Obama, Fed’s Holdings of U.S. Debt Have Jumped 452%

CNSNews.com ^ | 6/7/2012 | Terence P. Jeffrey

[ex-Texan]

Speaks for Itself:

Fed's Wall Street Bailout: A Huge $ 9 Trillion Disaster

[Toddsterpatriot]

The US has the authority to issue money. If it issued money, it wouldn't have to pay interest or even repay it.

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.

[Toddsterpatriot]

The fed are private (FOR PROFIT) Banks.. with stockholders and everything.. It is a BUSINESS.

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?

[dalereed]

“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!

[Toddsterpatriot]

there’s still the derivatives which dwarf the national debt by a huge margin.

Since derivatives aren't debt, so what?

[Sgt_Schultze]

That might be a bit inflationary.

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.

[nascarnation]

Poor Bush had to peddle debt it to China.

Baraq and Timmy just hand it to Benny B.

[nascarnation]

Poor Bush had to peddle debt to China.

Baraq and Timmy just hand it to Benny B.

[Toddsterpatriot]

There is no difference on (money supply) inflation between the federal government creating money through issue and the federal reserve creating money through issue.

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.

[hosepipe]

answer: everything...

[liberalh8ter]

Let's not give all the credit to Obamagabe....there's a whole lot of career politicians that helped him achieve this goal. I will never forgive the republicans in Congress who played tough and then caved for each increase in the limit.

[Toddsterpatriot]

I know, the Treasury got about $80 billion.