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Federal Reserve Bought 80% Of U.S. Debt In 2009

By Implode-Explode Heavy Industries

"Here?s the problem that the U.S. Fed?s ?exit? poses in simple English: Our fiscal 2009 deficit totaled nearly 12% of GDP and required over $1.5 trillion of new debt to finance it. The Chinese bought a little ($100 billion) of that, other sovereign wealth funds bought some more, but as shown in Chart 2, foreign investors as a group bought only 20% of the total ? perhaps $300 billion or so. The balance over the past 12 months was substantially purchased by the Federal Reserve."

Full post as published by Mortgage Lender Implode-o-Meter on January 12, 2010 (boomark / email).