Another interest rate rise - U.S in over 32 trillion debt - why does this get ignored

[oldtimer28]

Another interest rate rise - U.S in over 32 trillion debt - why does this get ignored?

Especially by the left. Remember the - inflation will come back down nonsense. Inflation is a very difficult problem.

Milton Friedman videos need a resurgence in popularity.

[bladefd]

32 trillion debt means nothing by itself. Except for something like 7-8 trillion in foreign debt, the rest is owed to ourselves. Imagine if you owe your wife or child $10. You owe money but it's still in the family. That also doesn't consider the fact that your wife or son might owe you money in return. All of that gets added up as separate debts.

It also includes public debt including say if you bought bonds from US government - institutions buy a ton of bonds especially. So yeah, I believe the Feds hold most of the debt afaik, and it's essentially the government owing money to itself basically. There is also trillions in debt that one government agency owes another government agency (say if IRS borrows x amount of money from Social security administration - now the IRS owes that amount to the SSA). Mutual funds and government pension funds are also in there.

For foreign debt, keep in mind that other countries owe us more than we owe them. The 32 trillion number that folks like to quote never seems to consider that fact either.

I do think we should start paying off foreign debt and cut down on spending annually. We can't continue forever with annual deficit deep in red.

[Nanners]

32 trillion debt means nothing by itself. Except for something like 7-8 trillion in foreign debt, the rest is owed to ourselves.

the federal reserve is not "ourselves"... its a private bank and it primarily serves the interests of its shareholders, not the american people.

in 2022 the US treasury (aka US taxpayers) paid almost a trillion dollars in interest payments to the federal reserve

[bladefd]

the federal reserve is not "ourselves"... its a private bank and it primarily serves the interests of its shareholders, not the american people.

in 2022 the US treasury (aka US taxpayers) paid almost a trillion dollars in interest payments to the federal reserve

Congress has oversight over the Federal Reserve, and their entire board is appointed by the US President/Senate. They also have to make public their financial statements. Their net earnings also go directly to the US Treasury and Federal Reserve cannot keep it. Hardly a private bank.


The Federal Reserve System is not "owned" by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank. The Board of Governors in Washington, D.C., is an agency of the federal government and reports to and is directly accountable to the Congress.

The Federal Reserve derives its authority from the Congress, which created the System in 1913 with the enactment of the Federal Reserve Act. This central banking "system" has three important features: (1) a central governing board—the Federal Reserve Board of Governors; (2) a decentralized operating structure of 12 Federal Reserve Banks; and (3) a blend of public and private characteristics.

The Board—appointed by the President and confirmed by the Senate—provides general guidance for the Federal Reserve System and oversees the 12 Reserve Banks. The Board reports to and is directly accountable to the Congress but, unlike many other public agencies, it is not funded by congressional appropriations. The Chair and other staff testify before Congress, and the Board submits an extensive report—the Monetary Policy Report—on recent economic developments and its plans for monetary policy twice a year. The Board also makes public the System's independently audited financial statements, along with minutes from the FOMC meetings.

In addition, though the Congress sets the goals for monetary policy, decisions of the Board—and the Fed's monetary policy-setting body, the Federal Open Market Committee—about how to reach those goals do not require approval by the President or anyone else in the executive or legislative branches of government.

Some observers mistakenly consider the Federal Reserve to be a private entity because the Reserve Banks are organized similarly to private corporations. For instance, each of the 12 Reserve Banks operates within its own particular geographic area, or District, of the United States, and each is separately incorporated and has its own board of directors. Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. In fact, the Reserve Banks are required by law to transfer net earnings to the U.S. Treasury, after providing for all necessary expenses of the Reserve Banks, legally required dividend payments, and maintaining a limited balance in a surplus fund.

[oldtimer28]

the federal reserve is not "ourselves"... its a private bank and it primarily serves the interests of its shareholders, not the american people.

in 2022 the US treasury (aka US taxpayers) paid almost a trillion dollars in interest payments to the federal reserve

correct - with trillions more in interest expected due to Obama, Biden (and Trump's) terms.

[TeflonDonTrump]

the federal reserve is not "ourselves"... its a private bank and it primarily serves the interests of its shareholders, not the american people.

in 2022 the US treasury (aka US taxpayers) paid almost a trillion dollars in interest payments to the federal reserve

That guy actually thought the federal reserve was owned by the government. Hahahha

[rmt]

Downgrading of US credit (from AAA to AA+) is TERRIBLE - there is no spinning it. It means the faith in the US government to pay their bills has gone down. It means that the faith in our currency as the world's reserve currency takes a hit. Our COST of money is more doubtful. The interest alone paid on the debt will soon be crippling. They must stop spending like a drunken sailor.

[SATAN]

Downgrading of US credit (from AAA to AA+) is TERRIBLE - there is no spinning it. It means the faith in the US government to pay their bills has gone down. It means that the faith in our currency as the world's reserve currency takes a hit.

It's reality and most people outside the USA accepted it long ago.

[Patrick Chewing]

That guy actually thought the federal reserve was owned by the government. Hahahha

blade is the dumbest son of a bitch on this site.

[tpols]

Downgrading of US credit (from AAA to AA+) is TERRIBLE - there is no spinning it. It means the faith in the US government to pay their bills has gone down. It means that the faith in our currency as the world's reserve currency takes a hit. Our COST of money is more doubtful. The interest alone paid on the debt will soon be crippling. They must stop spending like a drunken sailor.

We're still near the top though. It's fishy business all around.

https://i.postimg.cc/Wp005RqM/Screenshot-20230803-140436-Chrome.jpg

All these countries ^^^ were the ones who ran the harshest lockdown procedures and like a monopoly board are the most treasured pieces. USA has a ton of people who won't follow the one world government plan and that's why we've been downgraded but **** em.

[SATAN]

We're still near the top though. It's fishy business all around.

https://i.postimg.cc/Wp005RqM/Screenshot-20230803-140436-Chrome.jpg

All these countries ^^^ were the ones who ran the harshest lockdown procedures and like a monopoly board are the most treasured pieces. USA has a ton of people who won't follow the one world government plan and that's why we've been downgraded but **** em.

:facepalm

[oldtimer28]

Downgrading of US credit (from AAA to AA+) is TERRIBLE - there is no spinning it. It means the faith in the US government to pay their bills has gone down. It means that the faith in our currency as the world's reserve currency takes a hit. Our COST of money is more doubtful. The interest alone paid on the debt will soon be crippling. They must stop spending like a drunken sailor.



Agreed and correct. I am surprised this was downgraded. Long overdue but risky politically by anyone to talk about the emperor's new clothes (u.s debt!)

[bladefd]

Downgrading of US credit (from AAA to AA+) is TERRIBLE - there is no spinning it. It means the faith in the US government to pay their bills has gone down. It means that the faith in our currency as the world's reserve currency takes a hit. Our COST of money is more doubtful. The interest alone paid on the debt will soon be crippling. They must stop spending like a drunken sailor.

Keep in mind it's not the first time it happened. There was a downgrade by Fitch in 2011. In 2014, it was upgraded back to AAA. From what I heard (correct me if I'm wrong), what happened after that downgrade was folks pulled money out of stocks and into bonds. That helped the US Treasury. After a few years, Fitch upgraded the US credit back to AAA. I don't know how it will go this time around - only time will tell. I'm not worried right now.

As for currency, it's not like there is currently a currency doing better than the US dollar. Certainly not the Euro or Yen.

[bladefd]

That guy actually thought the federal reserve was owned by the government. Hahahha

It's not a private bank for all of the reasons provided above. You would have to be a complete idiot to think the Federal Reserve was a private bank. Ultimately if sh!t hits the fan, Federal Reserve would try to get us out of such a bind because doing nothing is not in their interests. If the United States financial system goes down, Federal Reserve & all of their members (appointed by the president/Senate) goes down with it.