CNS News reported that so far this year the Federal Reserve has bought up more United States debt than the Treasury Department has issued. That doesn’t even seem possible, but somehow they found a way.
By the close of business on Wednesday, Feb. 6, according to the U.S. Treasury, the total federal debt had climbed to $16.4799 trillion—an increase of $47.2 billon for the calendar year.
At the close of business on Jan. 2, the Federal Reserve had owned $1.661 trillion in U.S. Treasury securities. By the close of business on Feb. 6, it owned $1.7172 trillion—an increase of $51.1 billion for the calendar year.
Thus, the Federal Reserve’s purchases of U.S. government debt in this calendar year have exceeded the Treasury’s net debt issues by about $3.9 billion. (Read More)
What a scam.
Just the title of your post, LC would be laughable if it weren’t so angering. This action by The Fed is damn criminal and will indisputably ruin our economy. How can anyone including The Fed self purchase liabilities as an asset? What they’re doing is commonly called “cooking the books”, specifically, “monetizing” debt and people in the private sector go to jail for doing it and far, far less. But I guess it’s just like Jon Corzine; with the right connections, the bigger the crime the safer you are.
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[...] Fed Bought More Debt Than Issued – Lonely Conservative [...]
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Meh, a mere rounding error. So what difference does it make anyhow?
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Bernanke at the private Federal Reserve banking cabal has reflated securitization — credit, housing, tech, education bubbles.
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