Home > federal reserve, politics, World Issues > Biggest Holders of US Debt : The Debt Lie

Biggest Holders of US Debt : The Debt Lie


Paul Toscano of CNBC released an article on what he called the “Biggest Holders of US Government Debt”. His article is misleading in many ways, and completely wrong in its main assumption.

When he lists “Federal Reserve and Intragovernmental Holdings” as the primary holder of US Government Debt, it is misleading. To say that the Federal Reserve, which is printing the money, and is buying the debt with that printed money, is a “holder of US debt” is impossible. When money is printed it is sold to a 3rd party who gives value for that printed paper. When the printers of that money use the same printed money to buy the debt it is all smoke and mirrors. There is no actual transfer of value. No payment. No “PURCHASE”.

There are two sickening byproducts to this activity, and they should both be grounds to prosecute those who are taking part in this activity.

1) The Federal Reserve gains more debt paper against the US Tax Payer and can therefore charge the US Tax Payer interest on that paper. In essence they are giving us a loan without giving us any value for that loan. Using something that has no value (Their purchase of US Debt with the legal tender that they printed at no cost to them). Isn’t that the definition of fraud or even Ponzi Scheme?

2) They are making a false demand for US Debt. The greatest fear of the US Government is the day in which an auction of US Treasuries is held and there are no buyers. What Mr. Toscano’s statement about the largest holders of US debt tells us is that there is not nearly the demand for US debt as you hear in the news.

U.S. Receives Record Demand For Its Bonds Under Obama

Record Demand for US Debt Leads Some to Call for More Government Borrowing

Record demand for US debt : The Hill

Can you see the game? Tell everyone that demand is high. Bet that they won’t guess that it is you buying your own debt with your own printed paper. Trick them into allowing you to borrow more. Trick the US Government into spending more.

The US Government won’t stop spending until we reach our “Credit Limit”. The truth is we reached it a long time ago. When the Federal Reserve buys its own debt paper, then the government thinks that we have more credit to spend because, after all, we sold all the debt paper we had to sell at the auction…….right?

Wrong. The Federal Reserve is thrilled that we have an 15+ trillion dollar debt. They are loving every penny of interest they receive. Private bank….private bankers….sucking the United States dry.

How do they keep the Ponzi Scheme going? They put out false information. Take a look at the USA Today article about foreign investment in the US.

Foreign holdings of Treasuries hits record high In this article the Federal Treasury announced: Total foreign holdings increased 1.7% in November to $4.75 trillion.

This makes it sound like the international demand for US debt is at an all time high. If that is true, then why is China selling off their debt?

The bottom line is that this is a rigged game. At $6.328 trillion the Federal Reserve and Intragovernmental Holdings is five times higher than the next closer investor. With the current debt of around 15 trillion dollars, that means that they hold over 1/3 of the total debt. That means that a third of the time, auctions do not have enough buyers so the Fed buys its own debt.

Itia (Abroad)

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  1. February 3, 2012 at 12:25 am

    Reblogged this on eve1748.

  2. February 3, 2012 at 1:53 am

    Great piece! Please Check usnotes.net for what we have posted on the Federal Reserve history and more. Keep up the fight!

  3. bob anderson
    February 18, 2012 at 2:31 pm

    how much of the u.s. debt is in the i.o.u.’s placed in the social security trust fund by congress when they confiscate the surplus at the end of each year.

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