Fed Now Largest Owner of U.S. Gov’t Debt—Surpassing China

CNS News ^

[JosephMama]

(CNSNews.com) - At the close of business on Tuesday, the debt of the federal government exceeded $15 trillion for the first time--with the largest single owner of the publicly held portion of that debt being the Federal Reserve.

Over the past year, as the Federal Reserve massively increased its holdings of U.S. Treasury securities and entities in China marginally decreased theirs, the Fed surpassed the Chinese as the top owner of publicly held U.S. government debt.

In its latest monthly report, the Federal Reserve said that as of Sept. 28, it owned $1.665 trillion in U.S. Treasury securities. That was more than double the $812 billion in U.S. Treasury securities the Fed said it owned as of Sept. 29, 2010.

[JosephMama]

Wait we owe ourselves more than anyone else?

Talk about a circle jerk........

[redpoll]

So we’re monetizing our debt. What could go wrong with that?

[mosesdapoet]

To pay this off including some interest at $15 per a second of time will take 32,000 years....

[JosephMama]

At least when the bills come due, we’re only screwing our selves.

Wait...

[dr_lew]

Quo vadis? All prognostications aside, you have to think that all this will just have to unravel at some point. I think we’re operating on the Japanese model at this point. When their banks went underwater, they just pretended it wasn’t happening. Well, it seems to have worked out for them.

[BobP]

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[ri4dc]

Oh, don’t worry about the Fed. That means they went up from soaking about $16 Billion annually in interest to about $33 Billion a year from the tax payers (you and me) and all they had to do was invent $853 Billion in a computer and transfer (loan) it to our too big to fail government. I’m sure they don’t mind the extra income, since they barely broke a sweat in the process. I could be way off (low) on the amount of interest they make, but you see how it’s good to be the King’s banker.

Eventually they are going to run out of OPM, but in the meantime it’s living for the lowly Fed folk.

[KarlInOhio]

So we’re monetizing our debt. What could go wrong with that?

We'll soon all be millionaires, billionaires and trillionaires. We'll have money to burn:

We won't even be able to carry all of our money in our wallets we'll have so much:

[JosephMama]

Hip hip hooray!

So I can finally take a bath in $100 bills?

[dr_lew]

So who’s that guy, some kind of financial blogger guru ... widely followed. He was gloom and dooming over the monetary situation six months ago. So what now?

BTW, I don’t mean to be mocking him, by any means. These things have a way of stretching out seemingly forever, but in the end ...

[JosephMama]

...we get hit by an asteroid and all this silly “debt stuff” seems rather meaningless...

[dr_lew]

... we wish!

[onyx]

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FReepathon Day 47!!

[Minus_The_Bear]

Old news... The Fed pass China a while ago.

[dr_lew]

... The Fed pass China a while ago.

I like that.

[federal__reserve]

Whatever the Fed is doing ain’t working worth a sheet.

[decal]

And not just burn...

[Pelham]

That “extra income” will go right to the Treasury.

All Fed income above salaries and basic expenses goes to the Treasury.

[South40]

Republicans took control of congress in 1994 and the debt went down.

DemocRATs took control of congress in 2006 and the debt went back up.

Coincidence?

[Varsity Flight]

And their just itchin to begin shifting this “debt” in 2014 with RICO-Fed-Care.