Skip to comments.Federal Reserve holds $2 trillion in U.S. debt
Posted on 08/20/2013 7:56:29 AM PDT by Prospero
The Federal Reserves holdings of publicly traded U.S. Treasury securitiesfederal government debtpushed above $2 trillion for the first time last week, hitting approximately $2,001,093,000,000 as of Aug. 14, according to the Feds latest weekly accounting.
The Feds accounting for the previous week showed that it had owned approximately $1,993,375,000,000 in U.S. Treasury securities as of Aug. 7.
Back on Dec. 31, 2008, before the Fed began its strategy of Quantitative Easing," the Fed owned only $475.9 billion in U.S. Treasury securities. Since then, the Feds holdings of U.S. government debt have more than quadrupled
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Actually I’m surprised. I would have assumed that the Fed was buying up most of the $5 or $6 trillion or so that Obama has stuck us with. Who else could buy up that much U.S. debt?
What could go wrong?
What could go wrong?
The greatest Ponzi scheme in the annals of recorded human history. This is nothing more than a shell game. The Fed is acting like the water pumps on the Titanic. It can buy a little time perhaps. But the truth is the nation is already effectively bankrupt, drowning in an ocean of insurmountable debt. The Fed is simply covering up the true size of this mind boggling debt.
With Quantitative Easing (QE) the Fed just converts this debt into money and injects this into the economy. This in effect is no different than some banana republic just printing money that is increasingly worthless. The result thanks to Obama and the Fed we have trillions in new debt and through QE an eroding US dollar.
We are bankrupt.
This is just Kabuki theater courtesy of the Fed to cover up that fact.
Since the US has reached its lawful borrowing limit, how is it possible for the privately-held Fed to emit debt on behalf of American taxpayers?
So the Fed must get the interest from the bonds. What does it do with the money? Return it to Treasury?
the national debt doesn’t increase for 3+ months...
because the fed is ‘buying’ the debt by printing as much as they need.
yea, that’s just brilliant
buy more bonds.
Eat it fed... yum yum... would you like some obama with your greens?
Anyone want to buy some tulips?
"Does the Federal Reserve operate using tax dollars?
The Federal Reserve's income is derived primarily from the interest on U.S. government securities that it has acquired through open market operations. Other sources of income are the interest on foreign currency investments held by the System; fees received for services provided to depository institutions, such as check clearing, funds transfers and automated clearinghouse operations; and interest on loans to depository institutions (the rate on which is the so-called discount rate). After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury.
Are these $2T in T-Bills and QE dollars one in the same?
Holy sh*t. I don’t know if we even make it to the 2014 elections.
When this all crashes, the Federal Reserve (which is a group of banks) will own and possess all of our gold and a huge amount of real estate.
This is exactly how banks have prospered through the ages; loan money to countries until they overextend and collapse, then take possession of all the securities.
Oh yes, I forgot. Throw the inevitable war into this mix.
It’s more like 200 trillion when you factor in future liabilities. Invest in guillotines.
Actually they don't, that's not how the bond market works.
They spent say, $2T for a stack of bonds with a total value at maturity of say, $2.2T. The 200B profit is what they might eventually get instead of interest. Or not. If the plan is to raise interest rates when sell-time comes around, they may want to sell the bonds at a loss as a way to kick rates higher.
fwiw, right now the fed's holdings is ten percent total federal debt. That's the same percent when Reagan was president. So much for QE money printing.