June 7, 2012
Obamanomics and the Debt
Well, do you think we, the taxpayers owe enough money?
Since President Barack Obama was inaugurated in January 2009, the Federal Reserve’s holdings of U.S. government debt have quintupled, according to the Fed’s official monthly balance sheet.
On Jan. 28, 2009, a week after Obama’s nomination, the Fed owned $302 billion in U.S. Treasury securities. On April 25, 2012, the latest date reported, the Fed owned five and a half time that much in U.S. Treasury securities–$1.668 trillion.
That is an increase from January 2009 of $1.366 trillion—or 452 percent.
Wow! And wasn’t Obama the guy who accused Bush of being “unpatriotic” for running up debt that he, the hopeful changer, has already surpassed?
Under Obama, the Federal Reserve has become the single largest owner of U.S. government debt. When Obama entered office, entities in the People’s Republic of China were the largest holders, followed by entities in Japan. At the end of January 2009, China owned $739.6 billion in U.S. government debt and Japan owned $634.8 billion.
By the end of March 2012, China’s holdings of U.S. debt had grown to $1.1699 trillion and Japan’s holdings had grown to $1.083 trillion.
Together, the Federal Reserve, China and Japan had increased their holdings of U.S. debt by $2.2445 trillion since Obama took office.
The total U.S. government debt grew from $10.6179 trillion to $15.6233 between Jan. 28, 2009 and April 25, 2012. Leaving out the intragovernmental debt—which the federal government owes itself—the publicly owned part of the U.S. government debt has climbed from $6.2955 trillion to $10.8607 trillion, an increase of $4.5652 trillion.
Now we’re talking real money!
The $2.2445 trillion of that new publicly owned U.S. government debt that was purchased by the Fed, China and Japan equals 49 percent of all the new debt the U.S. government has sold to the public since Obama took office.
Here’s a president who truly needs to be voted out come November, because we simply can’t afford him anymore.
http://hardastarboard.mu.nu/wp-trackback.php?p=2175
June 9th, 2012 at 1:28 pm
Unless I am sadly mistaken, the Federal Reserve is ‘owned’ by the Federal Government. If it is advancing money to ‘buy’ the Federal Government’s debts, how is it doing so? With what is it ‘paying?’ It seems to me that the ‘money’ it is using is a chimera, backed by nothing other than ‘promises’ which are unlikely to be honoured.
In effect, that makes the US Treasury Securities similar to the “Junk Bonds” being traded in the 1980s, and likely to have the same effect on the economy of the US as the Junk Bonds had on the Stock Markets in 1988!
You’re right, you simply cannot afford people who think this is a workable model of economic probity!
June 10th, 2012 at 12:35 pm
Gray Monk
That’s about the size of it.
The Federal Reserve isn’t even Constitutional, what it amounts to is an old government cop-out that should never have been created.
When you get a floundering far left goon like Obama in the Oval Office, one who’s as economically brilliant as the proverbial box of rocks and there’s something like the Federal Reserve within the reach of his influence, well…