Biggest holders of US government sovereign debt…

Not withstanding the fact that anybody that cared to look knew this to be the case some years ago already, what is astounding is how casually this piece of now official news should be reported.


That’s right, the biggest single holder of U.S. government debt is inside the United States and includes the Federal Reserve system and other intragovernmental holdings.

If Mr. Paul Toscano, “reporter” that he is, had the faintest of grasps of how our monetary system works, this piece of news should set off every single alarm bell this man may possess in the deepest meanders of his mind. But obviously, Mr. Toscano just finds this news to be a mere curiosity only worthy of a game of Trivial Pursuit.

By and large, our monetary system in the West and in the vast majority of other major and minor countries, is a circle jerk of sovereigns buying each other’s sovereign debt in order to support each other’s currencies. But clearly, this little stratagem has a mathematical limit. If that were not the case, sovereign would never need to buy their own debt.

The minute sovereigns must buy their own debt as the USA, the UK, France, Italy and tutti quanti have done and are now doing in spades, the inescapable conclusion is that the monetary system is broken. It is kaput. It is f**ked… in other words, it is no longer working.

An idle observer such as I am, watches how interest rates have been declining for over 30 years and are now pushing the zero bound. I watch as total debt has increased as a percentage of GDP to the point where any marginal decrease in debt will precipitate a disastrous decrease in an already feeble GDP. I watch as elected politician after elected politician wants to pile on even more debt whilst increasing taxes and cutting social expenditure. I watch as the major banks are pumped full of free cash and as they are offered risk free interest by the same entity that gave them the cash in the first place. I watch as blatantly criminal behavior takes place with the acquiescence of the highest holders of office… and some of you still ask me how I think we could be hurtling towards a world war? is one of the blogs I follow regularly and he is now running a series of letters written by Sophie Scholl during the period of time when the Nazis began to show their true colors. It is well worth a read.



2 Responses to “Biggest holders of US government sovereign debt…”

  1. pat00donnelly Says:

    This is juest a reversion to loss of control by the Rentier Kleptocrats. The smart ones are already out and into …… ????

    Entire countries can be eliminated, although these days, there is nothing left to steal except resources and treasure.

    All real economic activity is restricted now until governments are cleansed and rediscover the lost art of governance …. and taxation!

    Taxation forces economic activity, Laffer howareya!


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