Paul Toscano of CNBC released an article on what he called the “Biggest Holders of US Government Debt”. His article is misleading in many ways, and completely wrong in its main assumption.
When he lists “Federal Reserve and Intragovernmental Holdings” as the primary holder of US Government Debt, it is misleading. To say that the Federal Reserve, which is printing the money, and is buying the debt with that printed money, is a “holder of US debt” is impossible. When money is printed it is sold to a 3rd party who gives value for that printed paper. When the printers of that money use the same printed money to buy the debt it is all smoke and mirrors. There is no actual transfer of value. No payment. No “PURCHASE”.
There are two sickening byproducts to this activity, and they should both be grounds to prosecute those who are taking…
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