Is The Fed Reserve Running Out Of Time?

[Toddsterpatriot]

The U.S. government for the first time has spent more than $1 trillion this year on interest payments for its $35.3 trillion national debt, the Treasury Department reported Thursday.​

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With the Federal Reserve holding benchmark rates at their highest in 23 years, the government has laid out $1.049 trillion on debt service, up 30% from the same period a year ago and part of a projected $1.158 trillion in payments for the full year.​

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https://www.cnbc.com/2024/09/12/interest-payments-on-the-national-debt-top-1-trillion-as-deficit-swells.html?msockid=00fba19502346674097fae28034a676e

The government pays this interest with your taxes.

If we printed our own money, there would be no debt.

The U.S. government for the first time has spent more than $1 trillion this year on interest payments for its $35.3 trillion national debt, the Treasury Department reported Thursday.

It's awful! The government spends, borrows, wastes and taxes way too much!

The government pays this interest with your taxes.

Of course they do, how else would they be paying for it?

If we printed our own money, there would be no debt.

The government didn't borrow $35.3 trillion from the Fed.
The government doesn't owe $35.3 trillion to the Fed.

You don't want the government to print $35.3 trillion, instead of borrowing it, do you?

 

[Toddsterpatriot]

the marriage of banks and government Todd

The Meeting at Jekyll Island

Explore the Federal Reserve's history

www.federalreservehistory.org

~S~

the marriage of banks and government Todd

They aren't married.

What's wrong with derivatives? Could you even explain one to me?

 

[P F Tinmore]

The U.S. government for the first time has spent more than $1 trillion this year on interest payments for its $35.3 trillion national debt, the Treasury Department reported Thursday.

It's awful! The government spends, borrows, wastes and taxes way too much!

The government pays this interest with your taxes.

Of course they do, how else would they be paying for it?

If we printed our own money, there would be no debt.

The government didn't borrow $35.3 trillion from the Fed.
The government doesn't owe $35.3 trillion to the Fed.

You don't want the government to print $35.3 trillion, instead of borrowing it, do you?

The government didn't borrow $35.3 trillion from the Fed.
The government doesn't owe $35.3 trillion to the Fed.

Who then?

 

[Toddsterpatriot]

Who then?
View attachment 1045647

People who hold them in their IRAs, foreigners who want to invest the dollars they received from selling goods to Americans. Banks, insurance companies, pension plans.
Lots of people.

 

[P F Tinmore]

People who hold them in their IRAs, foreigners who want to invest the dollars they received from selling goods to Americans. Banks, insurance companies, pension plans.
Lots of people.

 

[Toddsterpatriot]

Don't be so hard on yourself.
There are plenty of poor people who don't own any Treasury securities.

 

[P F Tinmore]

Don't be so hard on yourself.
There are plenty of poor people who don't own any Treasury securities.

All bought with money borrowed from the Fed.

 

[Toddsterpatriot]

All bought with money borrowed from the Fed.

How much is borrowed from the Fed?

How do you know?

 

[P F Tinmore]

How much is borrowed from the Fed?

How do you know?

All of it.

 

[Toddsterpatriot]

All of it.

Why do they have Treasury auctions?
How do I own any T-bills?

 

[P F Tinmore]

Why do they have Treasury auctions?
How do I own any T-bills?

All bought with money borrowed from the Fed.

 

[Toddsterpatriot]

All bought with money borrowed from the Fed.

Show me.

 

[P F Tinmore]

Show me.

Look in your wallet. Everything in there will say Federal Reserve Note.

 

[Toddsterpatriot]

Look in your wallet. Everything in there will say Federal Reserve Note.

That's not proof I borrowed money from the Federal Reserve.

 

[P F Tinmore]

That's not proof I borrowed money from the Federal Reserve.

It is too complicated for you.

 

[struth]

1. Powell keeps printing money because he has to to cover the Budget Deficit that the stupid pols keep making. What options does he have? Print money and create inflation or borrow money and create inflation.

2. I heard "experts" discussing crypto as an alternative to the dollar to keep the Fed honest. The Fed would be required to keep a basket of crypto like they hold gold in Ft. Knox. It is a "currency" because there is no asset value. Businesses are starting to use it as a hedge in borrowing contracts, as a form of collateral. Borrow 10% more from us, we buy crypto and in 4-years we cash in.

3. I'm hoping that Elon and Vivek straighten out the countries' finances. If they cut $2T from the Budget, and cut the size of government down to the "right size" that should help get the finances on the right track. Better than seeing the interest on the Debt exploding upward.

The Fed doesn’t print money

 

[Toddsterpatriot]

It is too complicated for you.

I have never borrowed from the Federal Reserve.
Not complicated at all.

 

[sparky]

What's wrong with derivatives? Could you even explain one to me?

well the short version is they're something that makes $$$ on a failure Todd

Buffet called them 'weapons of fiscal destruction'

It was the Commodity Futures Modernization Act (CFMA) of 2000 that deregulated them, which led to the '08 crash

The fed's response was quantitative easing , basically monetizing the perps they created

~S~

 

[Toddsterpatriot]

well the short version is they're something that makes $$$ on a failure Todd

Buffet called them 'weapons of fiscal destruction'

It was the Commodity Futures Modernization Act (CFMA) of 2000 that deregulated them, which led to the '08 crash

The fed's response was quantitative easing , basically monetizing the perps they created

View attachment 1045716

~S~

well the short version is they're something that makes $$$ on a failure Todd

How do they do that?

It was the Commodity Futures Modernization Act (CFMA) of 2000 that deregulated them, which led to the '08 crash

I worked at the CBOE way back in the 80s. Their derivatives have always been regulated.
Why would deregulated ones have led to the '08 crash?

 

[sparky]

well the short version is they're something that makes $$$ on a failure Todd

How do they do that?

It was the Commodity Futures Modernization Act (CFMA) of 2000 that deregulated them, which led to the '08 crash

I worked at the CBOE way back in the 80s. Their derivatives have always been regulated.
Why would deregulated ones have led to the '08 crash?

I'd like to refer you to this piece Todd>

Derivatives Time Bomb: Definition & Warren Buffett's Warnings

Derivatives time bomb refers to the severe damage to the financial markets and economy in general that could be caused by a sudden unwinding of massive derivatives positions. The term is attributed to Warren Buffett.

www.investopedia.com

~S~