Quick ... the largest holder of US debt is ...

jst5150

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If you have a mutual fund, you're in the top 5. Congrats. I'll kill the suspense of this slide show, too, by saying it is ... The Fed, with $4,8 trillion. China is 3rd, and, as the slide show indicates when it opens, Luxembourg is 15th.

Thoughts on the US being the largest holder of US debt and it not being the Red Menace?

http://www.cnbc.com/id/29880401/?slide=2
 

Unique

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well - if it has to be someone - I suppose I'd rather have the Fed than China. :Shrug:. I'd rather go back to a surplus but I don't see that happening for a few years.
 

Fullback

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The giant Ponzi scheme called the fed and monetary system is designed that way. You have to keep writing yourself IOUs for the money you create with the push of a key on a keyboard.

Every Ponzi scheme reaches a tipping point and the US dollar-based one may be there soon. Every single Ponzi scheme collapses and so will this one, eventually.
 

Noah Body

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Tut-tut, Fullback...I work at the Fed, and we're taking the greatest care of your former country's national debt.

By making it grow. :D
 

Don

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The Federal Reserve System is owned by whom, exactly? It's not owned by FedGov. The twelve member banks are, in turn, owned by banks themselves. From the Federal Reserve's own FAQ page:
Who owns the Federal Reserve?
The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.
So who exactly is "owed" that $4.8 trillion? If it's the taxpayers, simply draw a line through it and the debt disappears. Who will receive that $4.8 trillion when it's repaid? That's a question I'd like to see answered.
 

Bird of Prey

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The largest holders of US debt are two years old and under. . . .
 

Fullback

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The taxpayers are the government for debt because the money was created in exchange for government bonds, but bankers, brokers and some big companies are the government when it comes to being paid or repaid, so you will never see a penny of it. :)
 

jst5150

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Ok, but who want to get pissed off at Luxembourg? NO ONE. See ... ;)
 

Noah Body

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The Federal Reserve System is owned by whom, exactly? It's not owned by FedGov. The twelve member banks are, in turn, owned by banks themselves. From the Federal Reserve's own FAQ page:

So who exactly is "owed" that $4.8 trillion? If it's the taxpayers, simply draw a line through it and the debt disappears. Who will receive that $4.8 trillion when it's repaid? That's a question I'd like to see answered.

The Fed adheres to what is known as "accepted service", meaning that we're a civilian organization that dovetails into the Treasury. We (the NY Fed, anyway) returns about 25-30 billion a year to the Treasury through securities lending, repos, that kind of stuff (OMC). The Federal Reserve is a quasi-government entity, and is subject to GAO oversight.
 

Jean Marie

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The largest holders of US debt are two years old and under. . . .
Ok, then I have to quit buying toys for all my friend's kids. That's gonna be a hard habit to break, though, the toys are so cool! My friend's grand kids just had their 1st birthday. Yeah, I'm spoiling them.