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Fed Reserve Now Owns $3.39 Trillion Of US Debt

From CNS News:

$3.39T Quantitative Explosion: Fed Owns More Treasuries and MBSs Than Publicly Held Debt Amassed From Washington Through Clinton

By Terence P. Jeffrey | September 22, 2013

(CNSNews.com) – The same day that the Federal Reserve’s Federal Open Market Committee announced last week that the Fed would continue to buy $40 billion in mortgage-backed securities (MBSs) and $45 billion in U.S. Treasury securities per month, the Fed also released its latest weekly accounting sheet indicating that it had already accumulated more Treasuries and MBSs than the total value of the publicly held U.S. government debt amassed by all U.S. presidents from George Washington though Bill Clinton.

Since the beginning of September 2008, in fact, the Fed’s ownership of Treasury securities and MBSs has increased seven fold.

As of the close of business Thursday, the Fed said, it owned approximately $2,052,055,000,000 in U.S. Treasury securities and approximately $1,339,771,000,000 in mortgage-backed securities—for a combined total of about $3,391,826,000,000 in Treasury securities and MBSs…

Thus the Federal Reserve now owns more debt in the form of U.S. Treasury securities and MBSs than the sum total of the publicly held debt that the U.S. government accumulated from George Washington’s administration into November 2001, during President George W. Bush’s first term.

The mortgage-backed securities owned by the Fed are those that have been issued and guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae…

The federal government first took control of Fannie Mae and Freddie Mac on Sunday, Sept. 7, 2008. In its last weekly accounting sheet released before that, on Thursday, Sept. 4, 2008, the Fed said that it owned $479.726 billion in U.S. Treasury securities…

The Fed’s combined ownership of  $3,391,826,000,000 in Treasury securities and mortgage-backed securities is now more than 7 times as great as the $479.726 billion in Treasury securities it owned five years ago before the takeover of Fannie and Freddie Mac…

Meanwhile, we’re told Fannie Mae and Freddie Mac are finally getting back on their feet. No wonder. — But just imagine what will happen once the Quantitative Easing is put back in the brassiere.

This article was posted by Steve on Wednesday, September 25th, 2013. Comments are currently closed.

3 Responses to “Fed Reserve Now Owns $3.39 Trillion Of US Debt”

  1. Astravogel says:

    Somehow the image of a cow suckling
    herself keeps coming to mind.

  2. canary says:

    This old classic blast from the past came to my mind. Got his autograph when I was a kiddie. 17 seconds.


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