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What in the world is this guy talking about?

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jvhockey01 posted on Tue, Aug 14 2012 5:27 PM

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Tyler: our largest debt holder is the federal reserve

not china, not oil producing nations, not canada

how does that work?

i get if we issue treasury bonds, china buys them, hangs on to them, we pay them back

but the way the reserve does it, how is the debt held?

"1. Social Security Trust Funds
U.S. debt holdings: $2.67 trillion

The largest portion of U.S. Intergovernmental Securities and the biggest holder of U.S. debt is the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, together comprising the Social Security Trust Fund or OASDI. When tax revenues for the Social Security exceed current expenses, the funds are legally obligated to invest in interest-bearing Federal securities guaranteed by the government, such as bonds from the U.S. Treasury.

According to the Treasury, as of December 2011, the Federal Old-Age and Survivors Insurance Trust Fund held $2.54 trillion of U.S. debt, while the Federal Disability Insurance Trust Fund held $153.9 billion, together more than doubling the amount of debt held by the Federal Reserve or China. Although the Social Security Trust Fund commands huge debt holdings in comparison to others, the amount of debt has held relatively stable, increasing by only $173 billion - approximately 7% - since 2009.

found it."

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John James replied on Tue, Aug 14 2012 5:46 PM

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Looks like he's talking about US Federal Government debt. But that's just my take. I could be wrong.

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Kelvin Silva replied on Tue, Aug 14 2012 5:55 PM

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If most of our debt is owned by the fed (makes sense since when the government wants to do something it must borrow money from fed, which it does all de time), who really owns the fed?

Rothschild?

Does government own government?

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