The FED balance sheet includes treasuries. The tax payer is ultimately responsible for the interest payments, a stealth tax. The FED balance sheet also includes a lot of junk paper they have kindly paid 18 banks for. This another TARP without congressional approval.
Aloha! Congressional gross spending as stated on each US Treasury Statement includes the cost of debt redemption, except what is uniquely known as "non-marketable debt", which is intergovernment debt. To me it is kind of like non-marketable derivatives like the MBS the US FED buys every month. If there was a market for the stuff then the US FED would not have to buy it.
The years prior to 2009 and the whole Great Monetary Crisis, otherwise known as the GFC in mainstream media, Congress spending was always rising year-to-year, by hundreds of billions. That is until 2009. During that fisal year Congress spending took a huge jump and increased by $3.5TRIL in just one year, to $11.4TRIL. So far this year we are seeing the US Treasury outlays at $11.3TRIL, over $1TRIL per month. In fact September is only half over and gross outlays are at $554BIL as of Sept 16th.
Aside from being a center for cronyism Congress is well known for its inefficiency. Just look at the last debt ceiling debate whereby the S&P essentially lowered the US credit rating due to "political deadlock on debt"! Not because we couldn't pay the interest but because Congress couldn't make any clear decisions on how to pay the interest and more importantly how to control the debt. This boils down to no clear policy. Well, the S&P fails to understand there is a clear policy and that is SPEND-SPEND-SPEND! For me that has been the one policy that Congress has made crystal clear since 1971. But it is also clear that when cronyism dominates then spending in an efficient manner to benefit the greater good is corrupted. No different than tin horn dictators like Chavez.
If Congress has gross outlays of $1TRIL per month it pretty much makes the US FED $85BIL per month chump change. The key is have receipts kept up with outlays on the US Treasury Statement? The clear answer is NO! That means Congress has to issue debt to fill the REVENUE GAAP! Make no mistake that Congress main source of receipts is taxation on all levels, mainly "individual taxes", not corporate taxes. If you consider "net tax receipts" then last year the US Treasury raked in just $1.8TRIL.
Why would the US FED ever abandon its "creator" in its hour of need? With gross outlays heading above the 2009 highs of $11.2TRIL that impending debt needs to be serviced at the lowest possible Fed Funds Rate(FFR) with the lowest 10yr Treasury rate. It seems that gross outlays tells a story. Then again if you care to see the truth about what the FOMC participants think then go to the details, the charts of their own survey(FOMC June) and see that all of the FOMC participants except one want to tighten in 2015 not 2014. By how much? In 2015 they want to see a FFR at 0.75%! A lot can happen in two years and as we have seen the US FED is not the be all-end all when it comes to controlling interest rates. The US FED is not conducting QE on behalf of the economy it is doing QE to assist Congress spend more at the lowest possible service cost.
The last question I ask is why has gross Treasury outlays risen since 2009 if there is this supposed recovery? All of this does nothing but destroy the purchasing power of our currency. In that realm we are all the 100%. There is no 1% or 99% …
The OMB states the proposed 2014 budget is 3.8 TRIL. Just asking…
They can't stop the QE to infinity because when they do the stock market goes down. Every time they mention it the stock market falls and that's all they've got. There's no national economy because the banks and the transnationals are vacuuming up capital, so all that's left is the giant global roulette table. If they let it go interest rates go up and there goes the new housing bubble.
Bubbles are all they have to work with now. They would have to all swallow some bitter medicine if they wanted to straighten this out, but…NAHHHHHHH
Banks are insolvent on M2M so the wash rinse continues with blind hope.