No. 118 – February 2, 2012

BIGGEST HOLDERS OF US GOVERNMENT DEBT

I want to start this edition off with an Internet article by Paul Toscano which appears below.  It is not all that long and should be read.  It gives a very good idea of where the money is – but not a clear-cut picture of where it originally comes from.

Biggest Holders of US Government Debt

By Paul Toscano | CNBC – 20 hours ago

As the U.S. government spends an unprecedented amount of money to fix the economy, there is an equally great need to raise the cash to pay for it. This is accomplished through borrowing, whereby Uncle Sam sells Treasury securities of varying maturity.

For investors, government bills, notes and bonds are considered safe because they have a guaranteed rate of return, based on faith in future U.S. tax revenues. The government has been partially funding operations via Treasury securities for decades.

This borrowing adds to the national debt, which has recently surpassed $15 trillion and is rising every second. The amount of debt is quickly approaching the federal debt ceiling, a legal limit to borrowing that currently stands at $16.4 trillion. 

Much of that debt is held by private sector, but about 40 percent is held by public entities, including parts of the government. Here’s who owns the most. Foreign countries listed include private and public investors, according to monthly U.S. Treasury data.

1. Federal Reserve and Intergovernmental Holdings – U.S. debt holdings: $6.328 trillion

That’s right, the biggest single holder of U.S. government debt is the Federal Reserve system. The Fed’s system of banks and other U.S. intergovernmental holdings accounted for a stunning $6.328 trillion in U.S. Treasury debt in September 2011 (the most recent number available). The amount is an all-time high as the Federal Reserve continues to expand its balance sheet, partially to purchase U.S. government debt securities.

About a decade ago, the total government holdings were “only” $2.5 trillion.

2. China – U.S. debt holdings: $1.132 trillion

The largest foreign holder of U.S. Treasury securities, China currently has $1.132 trillion in American debt, although it is down from all time highs of $1.173 trillion in July 2011.

3. Other Investors/Savings Bonds

U.S. debt holdings $1.107 trillion

With the most recent numbers from June 2011, this extremely diverse group includes individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts, estates, savings bonds, corporate and non corporate businesses for a total of $1.107 trillion.

Although the level of debt held in U.S. savings bonds has remained basically constant since 2000, the broad category of “other” investors has nearly quadrupled since reaching a four-year low in December 2007.

4. Japan – U.S. debt holdings: $1.038 trillion

One of the U.S.’s largest trade partners, Japan is also one of the U.S.’s largest debt holders, currently owning $1.038 trillion in Treasury securities.






5. Pension Funds – U.S. debt holdings: $842.2 billion

Pension funds control large amounts of money, reserved for personal retirements, and thus are obligated to make relatively safe investments. This group, which includes private and local government pension funds, holds $842.2 billion in U.S. debt. The private pension fund category also includes U.S. Treasury securities held by the Federal Employees Retirement System Thrift Savings Plan G Fund.

6. Mutual Funds – U.S. debt holdings: $653.5 billion

According to the Federal Reserve, mutual funds hold the sixth-largest amount of U.S. debt compared to any other group, although mutual fund holdings have diminished by more than $105 billion since December 2008. Including money market funds, mutual funds and closed-end funds, this group of investments managed about $653.5 billion in U.S. Treasury securities as of June 2011, which are the most recent numbers available.

7. State and Local Governments – U.S. debt holdings: $484.4 billion

U.S. state and local governments have nearly a half-trillion dollars invested in American debt, according to the Federal Reserve. The level of investment has remained stable since 2006, moving within the range of $484 billion and $576 billion. The current debt holdings, however, represent the lowest aggregate level for state and local governments since December 2005, when they stood at $481.4 billion.



8. The United Kingdom – U.S. debt holdings: $429.4 billion

The U.K. currently holds $429.4 billion in U.S. debt, but the country’s investment has fluctuated dramatically during the past two years. Now at its all-time high (and rapidly increasing), British holdings were as low as $55 billion in June 2008.






9. Depository Institutions – U.S. debt holdings: $284.5 billion

As of June 2011 (the most recent numbers available), the Federal Reserve Board of Governors lists depository institutions as holding about $284.5 billion in U.S. debt.

This group includes commercial banks, savings banks and credit unions. In 2011, its holdings more than tripled from the 2008 low of $105 billion. Between June and September 2011, holdings for depository institutions fell by nearly $44 billion.

10. Insurance Companies – U.S. debt holdings: $250.1 billion

According to the Federal Reserve Board of Governors, insurance companies hold $250.1 billion in Treasury securities. This group includes property-casualty and life insurance firms.

End of Article

The key phrase – and dead giveaway is:

“based on faith in future U.S. tax revenues” found, very quickly, in the introductory paragraph of the article.

When first read, this “fact” is very easily glossed over.

The truth is, WE THE PEOPLE will be left holding the bag.  In other words, higher taxes are coming down the pike.

Get ready to pay more in taxes – no matter what tax bracket you are in.  It is coming, and when it hits, we, as a Nation, might not be able to recover.

As a side note, American Airlines is now in pre-bankruptcy discussions and is trying to negotiate with the unions as to the total abandonment of all future retirement pension funds – four in total.

How will these pension funds be funded?  Or are the workers who relied on their pensions just thrown out in the cold.

Ultimately, WE THE PEOPLE will pick up the tab – once again – for the profligate spending, and legal pilfering, of the public at large.

Anytime a corporation goes belly, the United States government has a backup system that picks up the slack – and pays for the pensions of those who are being cut off.

So, the United States government is the last resort to “help” these people in retirement.

But the GOVERNMENT does not come up with the money.  WE THE PEOPLE DO.

It reminded me of an advertisement by Rachael Maddow, in which she is standing in front of a huge dam, in which she is proclaiming that, “The government built this dam.  We need the government to do this kind of work.”

THAT is how stupid we, as a nation, have become.

The government did NOT build one single dam in the country.  Industries and mega-corporations did.

Bechtel Corporation ( Bechtel Group) is the largest engineering company in the United States, ranking as the 5th-largest privately owned company in the America.

Look at that sentence again.  PRIVATELY OWNED COMPANY.

This one company alone has undertaken some of the largest construction projects, not only in America, but in the entire world.

The government did not pay a dime.  The American taxpayer footed the entire bill – with taxpayer money.

How can we be so dumb as to think that the government builds anything?

Awhile back, my grandson went to a local tourist trap outside of Sacramento, called Apple Hill.  It is overpriced to the max, sells apples for $1.29 a pound, when you can buy the same ones in supermarkets for 99 cents, and pawns off apple pies at $15.oo a pop.

My wife and I went there after my grandson did and came away very unhappy with the experience.  When I complained as to the ridiculous prices, my grandson piped up and said, “No, grandpa.  It was all free.”

When I asked him what he meant, he said on his school excursion everything was free.  “We didn’t have to pay for anything.  The school paid for it.”

I almost exploded when I heard this.  No one at school had told him who REALLY paid for it.  I tried to tell him who actually paid – but at 8 years old, it simply did not sink in.  To him, everything was simply FREE.

Again – WE THE PEOPLE – get stiffed with the check.

And, therein lies the rub.  Children are not being told the truth about who is footing all the bills.  They “just know” that it is free.

And the dumbing down of America continues.

HOW REALLY DUMB IS AMERICA?

I have hit on this topic before, but have not really gone to the root of the problem.

I would like to now go a little farther down that path and throw out a few thoughts – and then see what you think.

It is my firm belief that kids nowadays simple don’t know much of anything.  They all have a degree in SELF-ESTEEM but little knowledge of anything else.

American kids, when compared to other “advanced countries” place 24th in language ability – and 28th in math agility.

But these kids don’t seem to mind.  They have been so dumbed down that they think they simply,”Just know.”

I will not belabor this point.  I simply ask that you view the UCLA students being interviewed – and make up your own mind.  Please watch all the way through to the end.  When you hear what the last girl has to say – as to what she wants to be – you simply will not believe your eyes – let along your ears.  Watch her body movement – and the way she talks.

She, “Just knows.”

REMEMBER – THESE STUDENTS VOTE.

www.youtube.com/watch_popup?v=w–dyMsXNHx4

TRUE INFORMATION?  ONLY THE SHADOW KNOWS

I have to admit, I know very little about Islam and the Muslim “religion.”

What I do know is that the radical element numbers around 100,000,000.  That is ONE HUNDRED MILLION for those of you who are mathematically challenged.

How did I arrive at this number?  Actually, pretty simple.  A British friend of mine, who lives and works in Japan, casually stated that the radical number of the Islamic faith is roughly “ONLY” 10%.

As statistics tend to play games with numbers, I decided to check it out, on a simple mathematical basis just how much that “only” 10% actually was.

It is estimated that approximately 1 BILLION Muslims inhabit the planet earth.

So, it seems to me that 10% of 1 billion Muslims = roughly 100,000,000 MILLION RADICAL MUSLIMS, give or take a few million.

So, here we are faced with a “peaceful religion” in which ONE HUNDRED MILLION are fanatical nutto cases.

If my math is correct, that means that the total number of RADICAL MUSLIMS are bigger than most countries ENTIRE POPULATIONS.

No wonder our kids cannot do the math.  Keep them dumbed down – so they won’t even think about how much danger they are really in.

That being the case, I came across this article below, that was sent to me by an Internet source I subscribe to.

Being that I am totally ignorant of the Muslim “religion” I was wondering if those of you who are more enlightened than me, would care to comment in the blog section of THE AMERICAN TELEGRAPH, as to the authenticity of the website below.

I assume there will be at least a few of you who will take the time to respond.

What I am most curious to learn is if this account is even true.  Any help would be much appreciated.

http://www.examiner.com/law-enforcement-in-national/afghan-pedophilia-a-way-of-life-say-u-s-soldiers-and-journalists?CID=examiner_alerts_article

COCONUT OIL

I am always indebted to my readers for sending me articles that are not only interesting from a political point of view, but also from a social perspective as well.  I am again saying thanks to Naida for the following article that I think ALL readers will be able to benefit from.

I suggest you read it and see if it can help you to lead a more better informed, healthy life.

http://www.cbn.com/media/player/index.aspx?s=/mp4/LJO190v1_WS

HAPPY GROUNDHOG DAY

Yes, it is that time of year again.  From the looks of things – at least here in sunny California – spring has come early this year.  I hope that you all are enjoying the weather in your part of the world and taking life as it presents itself on a daily basis.

GOING TO JAPAN

My wife and I will be traveling to Japan from February 8th to February 29th on business.

I plan on making a special edition from that country.  I hope you find the next edition enlightening – and interesting at the same time.

Sayonara for now.

Keep thinking positive – and never give up hope!

Lawrence Klepinger
Editor/Publisher
THE AMERICAN TELEGRAPH