Fed Now Largest Owner of U.S. Government Debt—Surpassing China
November 17th, 2011Via: CNSNews:
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.
Meanwhile, as of the end of this September, entities in mainland China owned $1.1483 trillion in U.S. Treasury securities, according to data published today by the U.S. Treasury Department. That was down slightly from the $1.1519 trillion in U.S. Treasury securities the Chinese owned as of the end of September 2010, according to the same Treasury Department report.
Thus, at the end of September 2010, the Chinese owned about $339.9 billion more in U.S. Treasury securities than the Fed owned at that time. By the end of September 2011, the Fed owned about $516.7 billion more in U.S. Treasury securities than the Chinese owned.
Correct me if I’m wrong here. The Fed (Bankrupt member banks) is the largest owner of US Govt debt. The govt cannot get that much money out of the taxpayers it owns (since they’re debt slaves to the banks) so it moves the bad debt to the banks’ books. The banks are already insolvent and hoping to be bailed out by the govt (taxpayers). The banks – with nothing to lose – are betting everything on derivatives. If they somehow win the bet they own everything (on paper for whatever that’s worth). If they lose they’re too big to fail and hope to be bailed out by the taxpayers.
I’m told that this doesn’t create inflation because the banks won’t loan money out to the taxpayer/serfs, but what about the money that the govt spent that created the debt? Don’t the wars and waste and graft drive up the cost of food and water?
Somebody help me out here please. If the govt can’t find a lender for $800b in a years time how is this going to have a happy ending? This looks like a police state with bread lines until the taxpayers submit to new terms (NWO) unless I’m missing something? (And I really hope I’m missing something here). I know I’m an alarmist. Hopefully someone can correct me here.
the Mayan calendar makers seem to have had a very good system for predicting the end of the bond market.