Ok, this is a huge sign of the trouble we are in. Our own Federal Reserve is the second largest owner of our debt and only $25 billion behind China? How many times have you heard that China owning so much of our debt is a bad thing? I bet this is the first time most have heard that the Fed owns basically, just as much? Why?
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Federal Reserve Is Now Second Largest Holder Of US Treasury Bonds
The Federal Reserve holds $821.128 billion of US Treasury Bonds, surpassing Japan today to become the second largest holder of US Treasury Bonds. The Federal Reserve is $25 billion away from surpassing China for the number one spot.
http://www.zerohedge.com/article/its-official-fed-now-second…
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It’s Official: Fed Is Now Second Largest Holder Of US Treasury Bonds
Today’s POMO is over: at $2.069 billion, the operation was right in line with our expectations, coming in at a lofty 12.16 submitted to accepted ratio, as investors apparently are not too crazy about the yield perspective of the 4 2013 CUSIPs that were repruchased. However, what is far more important is that with holdings of $821.1 billion, the Fed is now officially the second largest holder of US Treasurys. Next up- China.
While the official breakdown will likely be a few weeks late in coming, here is the math:
Fed holdings as of September 30: $811,669
Add:
- POMO – September 30 (October 1 settlement): $2,200
- POMO – October 5: $5,190
- POMO – October 6: $2,069
Total: $821.128 Billion, which compares to Japan total $821.0 Billion as of July 2010
Congratulations, America: your central bank is just $25 billion away from being the Treasury’s largest creditor, and thus able to dominate any and all future debt restructuring negotiations with what is, essentially, itself.
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myBlessedHope 