Fed Passes China as Top Owner of U.S. Debt
From Will at The Other News:
In the period since the Federal Reserve announced in November that it intended to buy $600 billion in U.S. government debt by the end of this June, the Fed has surpassed mainland China as the top owner of publicly traded U.S. Treasury securities.
As of the end of March, according to data released by the Federal Reserve and the U.S. Treasury, the Fed owned $1.333 trillion in U.S. Treasury securities and the Chinese owned $1.1449 trillion. U.S. Treasury securities are the bills, notes and bonds sold by the Treasury Department to finance the debt of the U.S. government.The $2.4779 trillion in U.S. Treasury securities owned by the Federal Reserve and the Chinese combined as of the end of March equaled 25.7 percent of the publicly-traded portion of the federal government's debt (which stood at $9.6516 trillion at that point).
The full U.S. national debt--which includes both the publicly traded debt and non-publicly traded “intra-governmental” debt that the U.S. Treasury owes to government trust funds such as the Social Security trust funds--stood at $14.270 trillion at the end of March and at $14.3447 trillion as of the close of business this Monday.in August 2010 the Fed started marginally increasing its holdings of U.S. debt, according the Fed’s monthly balance sheets. By the end of August, the Fed owned $784 billion in U.S. debt. By the end of September, it owned $812 billion. And by the end of October, it owned $838 billion.
During these three months, the mainland Chinese also increased their holdings of U.S. Treasury securities, bringing them to a peak of $1.1753 trillion by the end of October.But in November 2010, the Chinese began drawing down their holdings of U.S. Treasury securities.
That same month, the Fed announced it would significantly increase its own holdings of U.S. debt by buying as many as $600 billion in U.S. Treasury securities by the end of June 2011.
Of the $1.413 trillion in Treasury securities the Fed owned at the end of April, according to the Fed’s latest monthly report, $18 billion were in short-term Treasury bills that mature in one year or less, $65 billion were in Treasury Inflation-Protected Securities that mature in terms of 5, 10 and 30 years, and $1.33 trillion were in Treasury notes and bonds. Treasury notes mature in terms of 2 to 10 years and bonds mature in 30 years.
Read the full story here.
1 comment:
I made some promises to Mrs. Epa for a nice boat or something. Actually it doesn't matter what.
I am having trouble getting the money I need, you see. Well actually I don't need it, I want it.
But I have some ideas.
I have nice new BIG digital color printing press and I am going to print up Epa bonds.
I am going to start a corporation. And that corporation will have two business services.
The first service will be to buy those bonds.
Since the corporation HAS no money, the second service will be to print the money it will buy the bonds with and loan to me.
When my corporation makes interest when I pay myself back, I get that money too.
Whenever I detect I am short of money, I will just make more bonds.
Maybe, since this is an unlimited source of money, and others might want some interest money too, I might let others buy them besides my new corporation. If I have trouble paying these other bonds off, guess what? I will make special bonds only my corporation can buy, and the newly printed money I get from my corporation will pay off those other bonds I let others buy, besides my corporation.
But any way you look at it, since I can make as many Epa bonds as I want, what does it matter?
What could go wrong?
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