Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

What History Says for Gold Stocks in 2018-2019
By: Jordan Roy-Byrne CMT, MFTA

Jack Chan's Weekly Precious Metals Market Update
By: Jack Chan

Synchronized Global Growth May Have Arrived
By: Frank Holmes

Asian Metals Market Update: November-21-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Give Back Friday’s Gains
By: Chris Mullen, Gold Seeker Report

Operation Twist By Another Name and Method?
By: Gary Tanashian

SWOT Analysis: Gold Bounced Back After Attempts to Knock Down Price
By: Frank Holmes

Hyperinflation in Zimbabwe – It’s back, but maybe not for long
By: JP Koning

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape
By: John Rubino

Inflation and Counterfeit Credit
By: Keith Weiner

 
Search

GoldSeek Web

 
Holders of U.S. Federal Debt and Belgium


 -- Published: Friday, 18 July 2014 | Print  | Disqus 

By Thomas Fink

As Federal Debt continues to accelerate in growth every year we come to wonder… “Who would want to continue buying the debt?”

Federal debt held by all foreign and international investors is roughly $6 Trillion. Federal Debt Held by Foreign & International Investors includes every foreign nation, and international and foreign person who owns U.S. Federal Debt.

Despite foreign demand remaining for U.S. Federal Debt from foreigners, the real important note to remember is after 2008 the Federal Reserve became the largest buyer of U.S. Federal Debt.  At the end of June 2014 the Fed holds a record $4 trillion worth of U.S. Federal Debt on its balance sheets.

Since the Federal Reserve is the greatest buyer of U.S. debt, it is creating a dangerous situation for future inflation. The Dollars it has created to buy US bonds and treasuries through the process of debt monetization are mostly sitting at the Federal Reserve Banks. The $4 Trillion created by the Fed since 2008 are slowly beginning to flow into the economy and inflation has already begun to rage over the last couple months. This trend will likely accelerate over coming months.

Clearly we can see the Federal Reserve increased its monetary base since 2008. The Federal Reserve continues to buy $35 billion of U.S. Debt a month.

 

How will the Fed be able to stop its asset purchases in October? This brings us to Belgium.

Belgium has increased its treasury holdings exponentially over the past six months, who in Belgium could possibly be buying so much U.S. Debt? No individual has $362 billion. The GDP of Belgium is $483 billion, so it can’t be the Belgium government. The only conclusion we can draw is... it must be the European Central Bank, ECB. We can assume The Federal Reserve has only been able to taper and paint a rosy image to the public, because the ECB has begun to pick up the slack for the Fed by buying U.S. Treasuries through Belgium. Belgium is now the third largest holder of U.S. Treasuries.

Summary:

Foreign and international investors remain big holders of U.S. Federal Debt and even accelerated their holdings after 2008. China still continues to be a significant holder of U.S. Federal Debt. The greatest danger is the Federal Reserve being the greatest buyer of U.S. debt; it will certainly lead to higher inflation in the future. It could possibly even lead to runaway inflation once foreign holders begin to seriously sell their positions, and start dumping the Dollar as they realize it is becoming increasingly worthless. The only things keeping the Dollar a float now are the Fed, ECB, and the Dollar's Petro Status.

Disclaimer: All things liked or shared on, from, and by Thomas Fink are not his recommendations or advice. Read full disclaimer at: http://theworldnewsjournal.com/the_world_news_journal/disclaimer.php

 


| Digg This Article
 -- Published: Friday, 18 July 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.