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Fed Owns 64% More U.S. Government Debt Than China (+video)

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Photo Credit: AP

Photo Credit: AP

The Federal Reserve owned 64 percent more U.S. government debt than entities in the People’s Republic of China did as of the end of November, which is the latest period for which the Treasury has reported on the foreign ownership of U.S. government debt.

The $1,316,700,000,000 in U.S. Treasury securities that entities in mainland China owned as of the end of November set a record for China, but it was still $846,966,000,000 less than the $2,163,666,000,000 in U.S. Treasury securities the Federal Reserve owned as of Nov. 27, according the Fed’s weekly balance sheets.

As of January 9, the latest day on the Fed’s last weekly accounting sheet, the Fed had increased its holdings of U.S. Treasury securities to $2,212,924,000,000.

The Fed also owns $1,490,167,000,000 in mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae.

At the end of January 2009, the month President Barack Obama was first inaugurated, mainland China owned $744.2 billion in U.S. government debt and the Fed owned $475.129 billion.

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Somehow Federal Debt Has Remained Exactly the Same for Two Months: $25 Million Below Legal Limit

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Photo Credit: APAccording to the Daily Treasury Statement for July 12, which the U.S. Treasury released this afternoon, the federal debt that is currently subject to a legal limit of $16,699,421,095,673.60 has stood at exactly $16,699,396,000,000.00 for 56 straight days.

That means that for 56 straight days the federal debt has remained approximately $25 million below the legal limit.

Even though the portion of the federal debt that is subject to a legal limit has not changed in almost two months, the Treasury has continued to sell bills, notes and bonds at a value that exceeds the value of the bills, notes and bonds it has been redeeming.

The “public debt subject to limit”–as the Treasury calls the portion of the federal debt that is legally limited by Congress–first hit $16,699,396,000,000.00 at the close of business on May 17.

Up to that point in fiscal 2013, according to the Daily Treasury Statement, the Treasury had already redeemed approximately $4,776,995,000,000.00 in U.S. debt instruments (bills, notes and bonds) that had matured. At the same time, the Treasury had issued $5,354,508,000,000.00 in new debt instruments. That means that, on net, as of May 17, the part of the federal government’s debt publicly circulated in instruments likes bills, notes and bonds had increased $577,513,000,000 for the fiscal year.

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Fed’s Holdings of U.S. Gov’t Debt Hit Record $1,696,691,000,000; Up 257% Under Obama

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Photo Credit: AP In data released Thursday afternoon, the Federal Reserve revealed that its holdings of U.S. government debt had increased to an all-time record of $1,696,691,000,000 as of the close of business on Wednesday.

The Fed’s holdings of U.S. government debt have increased by 257 percent since President Barack Obama was first inaugurated on Jan. 20, 2009, and the Fed is currently the single largest holder of U.S. government debt.

As of the end of November, according to the U.S. Treasury, entities in Mainland China owned about $1,170,100,000,000 in U.S. government debt, making China the largest foreign holder of U.S. government debt.

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Time For a Yard Sale? Selling Excess Property Could Net Government Billions (+video)

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When families face a budget crunch, they have but a few options — spend less, make more or starting selling stuff.

So why doesn’t the federal government do the same?

Given the current state of the country’s finances, many are wondering if it is time for the federal government to sell what it doesn’t need — basically, hold a yard sale.

The federal government is sitting on billions in assets that are either sluggish or just dead weight. That includes federal land, buildings and other structures. Two years ago, President Obama’s deficit commission identified 64,000 buildings and structures that it deemed excessive, underutilized or vacant and recommended should be sold.

“So instead of raising taxes, which takes money out of the economy and lowers economic activity, we ought to be looking at selling federal assets,” said Myron Ebell, with the Competitive Enterprise Institute.

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