Federal Reserve to pass Japan as 2nd largest US Treasury Debt holder in the next week

[smokingman]

Federal Reserve Balance Sheet Update: Week Of September 29 | zero hedge
And on the current course of action they will pass China as the largest holder within a month.

 

[Duncan]

Gentlemen this is damn scary .
The bank we contract out with to issue credit / bonds is now buying bonds ... with what ... money that is creates out of thin air ... and they hold bonds that they receive interest on .

They the fed. gov , are running out of buyers for the 30 year Bonds .... the Fed. Res . Stepped in and bought a bunch to hold down the interest / hold up the price of the bond ....

2 choices here ....
Reduce spending or
Find new buyers of the bonds ...
or if you're the Government you can CREATE NEW BUYERS ...
They have been talking about mandating that 401"s and retirement accounts buy / be forced to own us bonds .

Thanks
Duncan

 

[ATOMonkey]

Well, I can't see anything going wrong here. Mo money mo money mo money!!!!

 

[Expat]

I guess forcing us to own bonds in our 401ks is marginally better than simply confiscating it like the Dems floated a few years ago. Maybe that was why they floated the idea, so now it will be a relief that we have T bonds forced on us. Maybe I will stop contributing to mine, it isn't like my employer matches so no great loss.

I still want to know what Hillary and the gang have promised the Chinese to keep them buying our debt. I have a feeling I know why the Russians are doing it, and it ain't going to be good for us.

 

[smokingman]

Just an FYI as of Friday October 1,2010 the FED is now the second largest holder of US Treasuries.