Another $4T in funny-money?

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presidentbyamendment's picture
presidentbyamendment
Status: Bronze Member (Offline)
Joined: Sep 29 2009
Posts: 64
Another $4T in funny-money?

I had a sign at the White House a week or so ago that said that the UK and

Japan are the biggest purchasers of US debt lately, alluding to the flim-flammery

CM alleges is going on with the custody account. People who are not financial

wizards find that fishy. However, one guy told me the only problem he had with my

sign is that the biggest holder of US debt is the US. He cited shadowstats.com,

but I couldn't find that on there. The site has gotten very cluttered, apparently due

to income-producing business for the site. SO, I went and slogged around at

federalreserve.com, and indeed, over $4T of the US debt appears to be in non-negotiable

special-purpose instruments for salmon farmers and such.

That's just as bad as any other monetization of debt, though, n'est pas?

Rick Hohensee

presidentbyamendment.com

 

anton95's picture
anton95
Status: Member (Offline)
Joined: Sep 29 2008
Posts: 22
Re: Another $4T in funny-money?

This is the intra-government debt.

Am open to correction but I believe that this is the Social security IOUs referred to in the Crash Course.

At present they are not real debt as no funds have been raised (but are part of the unfunded Social Security future liabilities), but they would have to be sold into the market as a debt raising exercise if the government wanted to use them to pay for SocSec costs.

Therefore when people add the total Fed debt of $11.8trillion to the NPV liabilities of SocSEc/Medicare, they are double counting that particular $4 trillion.

presidentbyamendment's picture
presidentbyamendment
Status: Bronze Member (Offline)
Joined: Sep 29 2009
Posts: 64
Re: Another $4T in funny-money?

My bad, treasury.gov.
Monthly statement of public debt...
from the summary....

Nonmarketable:
  Domestic Series.............................           29,995                         0                   29,995
  Foreign Series..............................            4,486                         0                    4,486
  R.E.A. Series...............................                1                         0                        1
  State and Local Government Series...........          218,336                         0                  218,336
  United States Savings Securities............          192,822                         0                  192,822
  Government Account Series...................          118,945                 4,306,998                4,425,942

The whole enchilada...
http://www.treasurydirect.gov/govt/reports/pd/mspd/2009/opdm082009.prn
ANd a taste of that...

Nonmarketable--Continued: Government Account Series - Held By the Public: Albanian Claims Fund, Treasury Department................................. 1 0 1 Belize Escrow, Debt Reduction, Treasury................................... 1 0 1 Custodial Tribal Fund, Office of the Special Trustee for American Indians. 317 0 317 Deposits of Proceeds of Lands Withdrawn for Native Selection, Bureau of In 2 0 2 Deposits, Outer Continental Shelf Lands Act, Bonus Bids, Minerals Manageme 23 0 23 Disgorgement Penalty Amount Held for Investment........................... 1,981 0 1,981 Escrow Account, National Labor Relations Board............................ 3 * 2 FTC Consumer Redress Escrow…………………………………………………………………………….………… 93 0 93

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