BusinessDaily.eu – By Mikkel Egesberg – This is a small section of the article: The US Federal debt crisis
Here is the US Federal reserve’s (FED) holding of US debt:
From January 2009 to October 2012 FED’s holding of US treasuries has increased from 476 billion US dollars to 1.659 billion USD, an increase of almost 1,2 trillion US dollars. But why?
USA is running huge deficits on it’s federal budget:
– The figure shows that the US federal budget had a deficit of 1327 billion US dollars in 2012 (8,5% of GDP). This budget deficit has lead to an explosion in the US debt, which is now around 104% of GDP.
The US has a current debt limit of 16.394 billion USD, but Congress has been raising this limit 13 times since 2000, because of all the budget deficits. Somebody needs to buy this debt, and if foreigners and others are not, the Fed has to, if they want to keep interests rates low. In short, the printing press is running hot…
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