2,000,000,000,000... That is a lot of zeros for the Federal Reserve Debt.

[Mike.Redd]

How is it even possible to get to a number like that? That is obnoxious! I think our government needs a new CPA or a better accountant.

Actual Debt number can be seen here:
Fed watch: Federal Reserve now owns over $2T in U.S. debt | Via Rare.us

 

[AliHajiSheik]

How is it even possible to get to a number like that? That is obnoxious! I think our government needs a new CPA or a better accountant.

Actual Debt number can be seen here:
Fed watch: Federal Reserve now owns over $2T in U.S. debt | Via Rare.us

Looks like the accountants are doing fine because we know the number--or did you think that accounts do something else?

 

[Kushinator]

How is it even possible to get to a number like that? That is obnoxious! I think our government needs a new CPA or a better accountant.

:coffeepap

So? They hold $1.3 trillion mortgage backed securities. What does it mean?

 

[ttwtt78640]

How is it even possible to get to a number like that? That is obnoxious! I think our government needs a new CPA or a better accountant.

Actual Debt number can be seen here:
Fed watch: Federal Reserve now owns over $2T in U.S. debt | Via Rare.us

The accounting department is likely far better than the management in charge. Don't blame the folks telling you what is owed, object to those that allow others to borrow with a taxpayer guarantee of their loan.

 

[head of joaquin]

Everything is relative. Our GDP is about $15T. $2T is not a big deal in context. I guess if the US had the economy of Slovakia it would be alarming. But we don't.

So debt fetishists can calm down: the sky isn't falling.

 

[Fenton]

Everything is
relative. Our GDP is about $15T. $2T
is not a big deal in context. I guess if the US had the economy of Slovakia it would be alarming. But we don't.

So debt fetishists can calm down: the sky isn't falling.

LOL !! So Obama just needs to spend more.

The fact that our Central bank has monetized 2 TRILLION of our short term debt so they can prop up the stock market and a stagnant economy is the issue here and its one of the most destructive aspects of Obama's failure.

And all in the interest of keeping Obama's 7 Trillion in new debt cheap....for now.

Seeing as these are short term securities a spike in bond yields can leave our Treasury with a brand new expense.

On top of the massive amount of borrowed money they currently spend to take care of the growing dependent class in this Country.

Elections have " consequences " alright and the best the left wing messiah can do is offer up the illusion of wealth in the stock markets....

How pathetic.

 

[Imnukingfutz]

How is it even possible to get to a number like that? That is obnoxious! I think our government needs a new CPA or a better accountant.

Actual Debt number can be seen here:
Fed watch: Federal Reserve now owns over $2T in U.S. debt | Via Rare.us

The Fed reserve is Obama's little personal stimulus package. He gets his appointed minion to pump billions of dollars a month into the economy - at the risk of tax payer expense all so he can end around Congress and not have to deal with pesky laws and that durned ole dusty Constitution. A liberal's wet dream...a government backed piggy bank with unlimited withdraws.

 

[head of joaquin]

LOL !! So Obama just needs to spend more.

Your brain on Obamaphobia and the debt fetish.

I wonder if there is a third alternative between tea party lunatic austerity and "spending more." Hmm, makes you think.

 

[specklebang]

The Fed reserve is Obama's little personal stimulus package. He gets his appointed minion to pump billions of dollars a month into the economy - at the risk of tax payer expense all so he can end around Congress and not have to deal with pesky laws and that durned ole dusty Constitution. A liberal's wet dream...a government backed piggy bank with unlimited withdraws.

The very same minion Bush had. Isn't that kind of interesting? Perplexing? Mysterious?

That is NOT a "blame Bush" statement. But it is the very same guy. Am I wrong?

 

[Gimmesometruth]

Seeing as these are short term securities a spike in bond yields (interest rate) can leave our Treasury with a brand new expense.

Any "spike" in interest rates REDUCES the cost of previously sold bonds.

Proportion and chronology are missing from your calculation.

 

[head of joaquin]

The Fed reserve is Obama's little personal stimulus package. He gets his appointed minion to pump billions of dollars a month into the economy - at the risk of tax payer expense all so he can end around Congress and not have to deal with pesky laws and that durned ole dusty Constitution. A liberal's wet dream...a government backed piggy bank with unlimited withdraws.

The Fed Open Market Committee has 12 independent members, and each has one vote. The 7 member board of governors were all appointed by prior presidents until recently (their term is 14 years with one term expiring on a staggered even year basis).

More Obamaphobia on parade.

 

[Gimmesometruth]

PS.....here are the real interest rates for US T notes:

Daily Treasury Real Yield Curve Rates

5 year notes are -0.13%.

Oh noes.

 

[specklebang]

It's only twelve zeros. Not to worry. If we get one more zero - call me right away.

 

[Fisher]

Any "spike" in interest rates REDUCES the cost of previously sold bonds.

Proportion and chronology are missing from your calculation.

Well, until it comes time to pay them off. Since we just continuously re-fi so we only make interest-only payments forever, the argument is only temporarily valid. It is the policy of systematically diluting the purchasing power of a dollar that reduces the cost of borrowing overtime.

 

[Gimmesometruth]

Well, until it comes time to pay them off. Since we just continuously re-fi so we only make interest-only payments forever, the argument is only temporarily valid. It is the policy of systematically diluting the purchasing power of a dollar that reduces the cost of borrowing overtime.

Um...no, "we" don't "refi" T notes. The quote was in response to "short term" notes going forward, which in REAL terms are still below the rate of inflation (hence their negative value). We are still effectively in a lower bound.

When these notes come due, when we pay them off, their real value is LESS than what they were when issued.

 

[Dooble]

Everything is relative. Our GDP is about $15T. $2T is not a big deal in context. I guess if the US had the economy of Slovakia it would be alarming. But we don't.

So debt fetishists can calm down: the sky isn't falling.

Of course the national debt is coming up on $17T, but for some reason, the Left doesn't seem to be too concerned about that.

U.S. National Debt Clock : Real Time

 

[Linc]

Not true. All Americans are concerned.

Of course the national debt is coming up on $17T, but for some reason, the Left doesn't seem to be too concerned about that.

U.S. National Debt Clock : Real Time

 

[WhyteRash]

disgusting isn't it?..
when I was a kid we talked about hundred dollar bills filling a room being the estimated natl. debt.. we never dreamed it'd be a trillion, let alone multiples of trillions..
ridiculous wanton spending.. much of which I suspect is without any oversight or accountability..

how can it be stopped? realistically that is..?
what checks and balances would any of them be willing to sacrifice their political income and possibly their career over?

 

[CalGun]

You have to look at this positively. Seriously. The leftist have to just keep that can going down the road for hilda in 3 years. We got good times ahead, for at least 3.5 years. Afterall it's not for the children it's for hilda the ambassador killer in '16

LOL !! So Obama just needs to spend more.

The fact that our Central bank has monetized 2 TRILLION of our short term debt so they can prop up the stock market and a stagnant economy is the issue here and its one of the most destructive aspects of Obama's failure.

And all in the interest of keeping Obama's 7 Trillion in new debt cheap....for now.

Seeing as these are short term securities a spike in bond yields can leave our Treasury with a brand new expense.

On top of the massive amount of borrowed money they currently spend to take care of the growing dependent class in this Country.

Elections have " consequences " alright and the best the left wing messiah can do is offer up the illusion of wealth in the stock markets....

How pathetic.

 

[CalGun]

No I don't think they are.

They are concerned about their obamaphone, free health insurance, EBT, section 8 and increased disability payments (11 million strong) and whatever it takes to buy the votes of enough electoral votes!

Not true. All Americans are concerned.

 

[sookster]

The left isn't worrying about it because no one should worry about it. The federal deficit is the amount of money in the economy. You pay the interest only so The Fed gets a return on the loan, but the rest doesn't really matter. It is spent through the economy and is retracted through interest rates. The reason why the government is able to spend indefinately is because the way the banking system works money is created out of thin air on a per loan basis. For as much money that is owed to The Fed, that amount is created as well as treasury bonds which can be used as an asset. The Fed is getting rediculously rich, banks are getting richer on a per loan basis through the creation of money and financial instruments. Meanwhile, money is pumped through the government in projects which in theory are for the best interest of the common good while adding money to the money supply to satisfy the increasing demand for money because of continual economic growth.

The debt isn't a big deal. What is a big deal is people not knowing how the banking sector works and the overall flow of money. As the debt increases public confidence will decrease. If the government prints money to pay it back, which is perfectly fine because the money is removed from the money supply because it is going to the banks. This will also essentially give banks more power, will also decrease confidence and affect trading. The way things work also undermines the whole system. Why does the government have unlimited credit when the average citizen does not? Why can banks and the government just create money to eliminate their debt and we cannot?

It's a sticky situation. But as long as things run and people get their products, services, and entertainment everything should be okay.

 

[Imnukingfutz]

The very same minion Bush had. Isn't that kind of interesting? Perplexing? Mysterious?

That is NOT a "blame Bush" statement. But it is the very same guy. Am I wrong?

Yup...appointed in 2006 and then again in 2010.

Just more evidence that Bush & Obama (Reps & Dems) are one and the same.

How Bernanke got through confirmation from Congress is beyond me, with all the underhanded dealings and scandals surrounding the BoA & Merrill Lynch merger he & along with former Treasury Secretary Henry Paulson was involved with. Not to mention the questionable AIG bail out.

 

[Imnukingfutz]

The Fed Open Market Committee has 12 independent members, and each has one vote. The 7 member board of governors were all appointed by prior presidents until recently (their term is 14 years with one term expiring on a staggered even year basis).

More Obamaphobia on parade.

Take your blinders off and get out of the defend Obama at all costs mode and see it for what it is...look at the facts...Get down from your Obama alter of worship long enough to see what is really going on. Simply follow the money.

 

[joG]

How is it even possible to get to a number like that? That is obnoxious! I think our government needs a new CPA or a better accountant.

Actual Debt number can be seen here:
Fed watch: Federal Reserve now owns over $2T in U.S. debt | Via Rare.us

$ 2.000.000.000.000 sounds like a lot of money and 313.900.000 sounds like a lot of citizens. Let's just take the hit. Get it out of the way. Turn to tomorrow.

 

[AliHajiSheik]

$ 2.000.000.000.000 sounds like a lot of money and 313.900.000 sounds like a lot of citizens. Let's just take the hit. Get it out of the way. Turn to tomorrow.

If only it were $2T it wouldn't be as serious.