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Who are the biggest holders of U.S. debt?
Flags fly over the Federal Reserve Building in Washington, D.C.
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This final note today, an observation about U.S. government debt. Treasury bonds -- now that interest rates on the 10 year are the lowest they've ever been.
You know how we always talk about foreigners -- China, especially -- being the ones who hold all our debt?
Not true at all. We saw an item on CNBC's website today listing the top 15 buyers of Treasuries. There's China, of course at No. 3. Japan at No. 5. That's it for countries in the top 10.
The biggest holder of U.S. debt? The Social Security Trust Fund. And No. 2?
C'mon, any guesses?
Yep, the Fed. Can you say 'quantitative easing'?
So there we have it, the top 2 largest holders of US debt are the government and quasi government (Federal Researve) itself. It's like writing your self a check and putting it in your pocket so that you can say you have money. You net out the liabilities and you will recognize we're broke. We gone past the time when other people are willing to lend us their savings, we're now at the stage where we're canibalizing our reputation as the value of our currency. It will take a while to destroy, and no doubt we've got a break because of Europes problems, but when it's gone, it will be gone forever.
sanoran_t, you obviously don't listen to Market Place too often.
There's a witty and entertaining aspect to Mr. Ryssdal's comments that adds to the charm of the show.
For a 30 min show, they pack in a lot of interesting information.
If you have an issue with his comment, you should take it up with CNBC, the source of your contention.
You could have kindly explained your side to the listeners of the show and started an intelligent conversation.
Instead, you opted to personally insult the host of the show. It surely reflect your "intelligence", character and wit.
I wonder how many people listen to your "wisdom" daily... but then, if you believe you're better than the rest of the world, why bother with your rants?
Mr. Ryssdal, ex Navy sailor (?), .... you don't seem to understand economics too well :) bin-Bernanke does not 'purchase' bonds, -he orders the Treasury to print money, and then gives it out via the Prime Dealer banks. bin-Bernanke has no money, (well he has personal money, but he doesn't use that).
bin-Bernanke call this act of covert money printing as 'stimulus', or QE or something else. He pretends to 'purchase' Treasuries etc so that ignorant gullible people like you will not realize what he is doing :) The Prime Dealers (20 or so big banks) love this, -as they get free gambling money, interest free, no questions asked.
Obviously you have taken the bait, hook line and sinker. If you really want to prove you understand economics, investigate, learn then explain to your listeners how Bernanke has printed and distributed 2.8 Trillion dollars so far.
but I doubt you can. Its probably too complicated for you.
