The world we live in is truly staggering when an event of historic magnitude occurs, but remains widely ignored. Today, the Financial Times reports that the United States central bank, the Federal Reserve, has over taken China as the largest holder of American debt.
The Fed owns over one trillion dollars of Government debt againt China with $896 Billion and Japan $876 Billion. In the UK, the Bank of England isetsimated to won roughly twenty percent of securities though its Quantitive Easing. This is a staggering AND the Fed is only about half way through the latest six hundred thousand million of Quantitative Easing (QE2). The pride with which Fed chairman Ben Bernanke announced his second round of money printing reminded me of Weimar Germany.During a speech to the German council of state Rudolf Havenstein, chairman of the German Reichsbank boasted of his new found printing ability and that they Reichsbank would be able to increase the supply of money by two thirds in a single day.
