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

[dustup]

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

(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.


Federal Reserve Chairman Ben Bernanke (AP Photo/Alex Brandon)

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.

The U.S. Treasury Department divides the federal government’s debt into two general categories: debt held by the public—the type owned by the Chinese and the Federal Reserve—and “intragovernmental debt,” which consists of what essentially are IOUs the Treasury gives to government trust funds such as the Social Security trust when it takes and spends their money on other things.

The current total national debt of $15.0336 trillion, reported by the Treasury today, consists of approximately $10.3145 trillion in debt held by the public and $4.7191 trillion in intragovernmental debt.


Read More Here:http://cnsnews.com/news/article/fed-now-largest-owner-us-gov-t-debt-surpassing-china] [url]http://cnsnews.com/news/article/fed-now-largest-owner-us-gov-t-debt-surpassing-china[/url]



 

[lucy]

That is a lot of money....and a lot of power.

[lucy]

Debt owned by the very ones who created the paper debt in the first place with the power to loan, to withhold spending, to call in debt, to create conditions for currency on the market, etc....

hmmm. Too much power using false monetary instruments.

[SufferedMoreThanJesus]

What a trillion dollars look like if you were to stack $100 bills.  That's right.  Not $1.00 bills.  $100 bills.

[SufferedMoreThanJesus]

[johnhp]

Easy solution: nationalize the fed.  Thank you.

[ivanm]

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

(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.


Federal Reserve Chairman Ben Bernanke (AP Photo/Alex Brandon)

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.

The U.S. Treasury Department divides the federal government’s debt into two general categories: debt held by the public—the type owned by the Chinese and the Federal Reserve—and “intragovernmental debt,” which consists of what essentially are IOUs the Treasury gives to government trust funds such as the Social Security trust when it takes and spends their money on other things.

The current total national debt of $15.0336 trillion, reported by the Treasury today, consists of approximately $10.3145 trillion in debt held by the public and $4.7191 trillion in intragovernmental debt.


Read More Here: [url]http://cnsnews.com/news/article/fed-now-largest-owner-us-gov-t-debt-surpassing-china]http://cnsnews.com/news/article/fed-now-largest-owner-us-gov-t-debt-surpassing-china] [url]http://cnsnews.com/news/article/fed-now-largest-owner-us-gov-t-debt-surpassing-china[/url]



 

Treasury issues are the primary reserves for our  money supply, and several years ago the amount held by the FRS was on the order of 800 billion.  It doesn't surprise me to see it being much higher.  Off hand I don't know why the FRS would hold more debt than needed to back the currency unless they plan on creating more money.

No doubt there is a sinister reason for it.   

[dustup]

Easy solution: nationalize the fed.  Thank you.

I don't think the US can take over the FRB, they are a private Company....But I agree that the US Should ban the FRB from handling the printing of U.S. Federal Reserve Notes  and bring the control of all printing and coining of U.S. monies under U.S. Congress control.....and audit the U.S. Gold reserves.......

[johnhp]

I don't think the US can take over the FRB, they are a private Company....But I agree that the US Should ban the FRB from handling the printing of U.S. Federal Reserve Notes  and bring the control of all printing and coining of U.S. monies under U.S. Congress control.....and audit the U.S. Gold reserves.......

Apparently you do not know what the term nationalize means.  Here, let me help.  See meaning 2.

transitive verb
1
: to give a national character to
2
: to invest control or ownership of in the national government
— na·tion·al·i·za·tion noun
— na·tion·al·iz·er noun

[dustup]

Apparently you do not know what the term nationalize means.  Here, let me help.  See meaning 2.

John....I know what Nationalize means.......So are you saying that the Government should take over a private Bank Throw out the owners and replace them with their own Cabal 

[johnhp]

John....I know what Nationalize means.......So are you saying that the Government should take over a private Bank Throw out the owners and replace them with their own Cabal 

"cabal"?  You are just one big ball of conspiracy craziness.

[johnhp]

John....I know what Nationalize means.......So are you saying that the Government should take over a private Bank Throw out the owners and replace them with their own Cabal 

You apparently DON"T know what nationalize means or you would not have written this: "I don't think the US can take over the FRB, they are a private Company"