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Posts Tagged ‘us treasury bonds’

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:

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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Click on the article title for a link to full original referenced article.

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