*including the few Savings and Loans remaining after megabanks virtually eliminated that industry
that was their main competitor, especially via endless treachery during the 1980’s.
*Although impossible to calculate, Fed taking on Treasuries as Lender of Last Resort
also includes many $Billions if not $Trillions of DOOMED Treasuries
the 1% have thus been able to unload at unheard-of, all-time maximal prices for Treasuries,
also thanks to the Fed’s QE driving prices out of this world while trampling interest rates.
*Since total lending ever mushrooms in a debt money system (until crashes like Subprime),
new lending usually not only absorbs principal payments but exceeds them.
¹ Uncle Shame Debt in the graph is total “Debt Held by the Public,” i.e, outstanding Treasuries Uncle Shame owes lenders,
hence excludes federal “intragovernmental holdings.” The latter are mostly worthless IOUs for excess social security
tax payments Uncle Shame received over decades past but spent on other programs over the decades rather than invest them*
toward especially Uncle Shame’s catastrophic obligations to Baby Boomers his bare cupboard now has nothing to meet.
Outstanding “Debt Held by the Public” thus also fails to include the dozens if not more than a hundred $Trillion in benefits
Uncle Shame is obligated to provide especially Baby Boomers but present law including taxation rates are utterly unable to meet.
*like all private pension/retirement plans have to by law
² Note re: the violet Lenders/Investors area in the graph:
The informed reader will know this area includes a small tranche of Treasuries held by the Fed to back greenbacks,
but that does not affect the gap representing QE:
Around 1 $Trillion of the Treasuries on the Fed’s balance sheet back greenbacks in circulation (currently – far less in previous decades).
Hence, the formula used to calculate the violet Lenders area includes those Treasuries the Fed balances against greenbacks.*
Since, however, the main function of the graph is to demonstrate how much the Fed had to become Lender of Last Resort,
somehow distinguishing that small tranche of Treasuries the Fed holds against greenbacks would unnecessarily complicate
the graph, but not change the QE gap in the graph, the main issue the graph illustrates.
Furthermore, currency certainly contributes to dollars ever losing value as their numbers increase, hence
excluding that corresponding amount from the graph would significantly understate Uncle Shame’s significant contributions
to what is spun as inflation, a term suggesting expansion when in fact it refers to money imploding in value.
– Ah, but how would the American sheople cope if they knew the truth?!!!!
*the effect of those Treasuries is also subtracted before calculating QE (excess reserves)
on the Fed’s balance sheet, since the latter exclude currency in circulation.