Thursday, November 17, 2011

What's wrong with this picture?

Did you ever play Monopoly as a kid and, as the designated banker, succumb to the temptation to simply remove some money for yourself if you were strapped for cash?

Wouldn't it be great if you could do that in real life?  Solve your money problems by simply creating more cash for yourself?

That's basically what the United States is doing.

As notes, at the close of business on Tuesday the debt of the US federal government exceeded $15 trillion for the first time - with the largest single owner of the publicly held portion of that debt being the US 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 US 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.

Perhaps the most astonishing statistic is that since Barack Obama has been President, the US debt has gone from $10,626,877,048,913 on January 20, 2009 to $15,033,607,255,920 as of yesterday. That's a stunning increase of 41.5%, or $4.4 trillion.

No wonder the US Federal Reserve is now the largest holder of debt.  Who else, besides the ones who are printing the currency, is there to buy it?


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  1. When the prices of precious metal(gold and silver) drop guess who is buying the most, you guess it....the banks!!

  2. This probably not the best place to comment on what's going on in Europe, but being a european myself, I'm pretty pissed at what's going on over there.

    Democracy is a fragile gift for which our ancestors have given their blood. When an elected government is forcefully replaced by non-elected so-called "technocrats" that would be rejected by regular elections, it's called a "coup" and it's the first step towards a totalitarian regime. After the replacement of the Greek and Italian prime ministers, which elected leader is next on the list? It's time for European people to stop this nonsense, step up and take their destiny back into their own hands.

    Here is what a great man has to say about what's going on:

    And here is the best speech I've ever heard about the definition of what Europe is.

    When I listen to this guy, I feel there is still hope...