FED now no1 holder of US TreasuriesAs foregin investors continue to reduce their holdings in US Treasuries the FED increases it's purchases finansed at record low interrest levels and by printing money. As there is nothing in this world as inflationary as printing money to finance debt the result clearly will be a future depreciation of the UD dollar. As this QE printing money out of thin air buying up US bonds scheeme can not continue forever and thus also other investors needs to buy US Bonds to finance the US defecits investor will demant higher interest rates as compensation. Therefore US bonds probably is the mother of all bubbles.
WASHINGTON (TheStreet) -- The Federal Reserve has passed China as the leading holder of U.S. Treasuries, according to the Financial Times, even though the central bank is only halfway through its second round of quantitative easing.
China holds U.S. government paper of $896 billion and Japan owns $877 billion, the newspaper reports, citing recent U.S. Treasury data.
The Fed announced in November 2010 a plan to buy $600 billion of longer-term Treasury securities by the end of the second quarter of 2011.
Just last month, the central bank voted to keep interest rates at near zero, saying the U.S. economy's slow improvement warrants maintaining the asset-purchase program through the middle of 2011.
The FT quotes a strategist at TD Securities as saying that by June, the Fed will have purchased $1.6 trillion of Treasuries, about the same as the combined holdings of China and Japan.
https://www.thestreet.com/story/10992472/1/feds-no-1-in-treasury-holdings-report.html