Skip to main content

US debt held by the Federal Reserve surpassed 25% of GDP in 2021!

globinfo freexchange

According to the economic database of St. Louis Federal Reserve (FRED), the US debt held by the Federal Reserve surpassed the unthinkable percentage of 25% of GDP (25.48%) for the first time in the third quarter of 2021!

We observe that from the beginning of the related recorded data in 1970, the US debt held by the Federal Reserve remains almost flat and at much lower levels (~ 3.5%-5.5% of GDP). And this is the case even during the recession right after the 1973 oil crisis depicted by the shaded area in the graph.
 
Then, during the big financial meltdown of 2007-2008, we observe a shallow dive of the debt. After that period, we can see clearly that the US debt held by the Federal Reverse breaks one record after another, reaching unprecedented levels.
 
For the first time, the debt surpasses 10% of GDP in the second quarter of 2011 (10.41%), and in the first quarter of 2014 surpasses 15% of GDP (15.25%). Then, we have a dive in the third quarter of 2019 at 11.33%, and after that, an unprecedented sharp rise in new record levels.

The debt skyrockets at 23.7% of GDP in the second quarter of 2020, 25.48% in the third quarter of 2021 as we saw above, and hits new record at 25,65% in the first quarter of 2022!

 
Recall that according to a 2021 report from the Institute for Policy Studies:

                         U.S. billionaires have seen their wealth surge $1.8 trillion during the pandemic, their collective fortune skyrocketing by nearly two-thirds (62 percent) from just short of $3 trillion at the start of the COVID crisis on March 18, 2020, to $4.8 trillion on August 17, 2021, according to a report from Americans for Tax Fairness (ATF) and the Institute for Policy Studies Program on Inequality (IPS). [...] Elon Musk has seen his wealth increase by an eye-popping $150 billion during the pandemic, a gain of over 600 percent.

While according to a 2021 Financial Times article [Emphasis added]:

                        As the virus spread, central banks injected $9tn into economies worldwide, aiming to keep the world economy afloat. Much of that stimulus has gone into financial markets, and from there into the net worth of the ultra-rich. The total wealth of billionaires worldwide rose by $5tn to $13tn in 12 months, the most dramatic surge ever registered on the annual billionaire list compiled by Forbes magazine.

                        The billionaire population boomed last year as well. On the 2021 Forbes list, which runs to April 6, their numbers rose nearly 700 to a record total of more than 2,700. The biggest surge came in China, which added 238 billionaires — one every 36 hours — for a total of 626. Next came the US, which added 110 for a total of 724. The top 10 gainers in the US and China each saw already vast fortunes grow in just one year by sums that not long ago would have seemed impossible in a lifetime: from $25bn to more than $150bn for Tesla founder Elon Musk.


Now, compare the data and figure out how these billionaire oligarchs overboosted their fortunes at such a short period with the working class being financially squeezed even more.

Comments

Popular posts from this blog

Ο ιδιότυπος φασισμός του ακραίου κέντρου

Η διολίσθηση του "ακραίου κέντρου" προς τον φασισμό γίνεται όλο και πιο ευδιάκριτη σε ολόκληρη τη Δύση   του system failure   Η αφετηρία της πολιτικής συνιστώσας αυτού που αποκαλείται σήμερα "ακραίο κέντρο", θα μπορούσε να τοποθετηθεί στις αρχές τις δεκαετίας του 80. Η πολιτική κυριαρχία του νεοφιλελευθερισμού, ξεκινάει με την προεδρία και την πρωθυπουργία του Ρίγκαν και της Θάτσερ σε ΗΠΑ και Βρετανία αντίστοιχα.   Είναι ίσως εντυπωσιακό, ότι το πρώτο αυτό κύμα της πολιτικής κυριαρχίας της νεοφιλελεύθερης ιδεολογίας έγινε με την βοήθεια του πιο συντηρητικού κομματιού, τόσο της Αμερικανικής, όσο και της Βρετανικής κοινωνίας. Είναι χαρακτηριστικό ότι η άνοδος του Ρίγκαν στην εξουσία έγινε με την βοήθεια της Χριστιανικής δεξιάς, που κινητοποίησε εκατομμύρια συντηρητικούς Αμερικανούς, οι οποίοι μέχρι τότε απείχαν από την εκλογική διαδικασία.   Η πολιτική κυριαρχία της νεοφιλελεύθερης ιδεολογίας ολοκληρώθηκε περίπου μια δεκαετία αργότερα, στις αρχές της δεκαετίας του 90,

China & Russia strengthen friendship, blasting Western 'neocolonialism' & US militarism

Geopolitical Economy Report   Putin met with Xi Jinping in Beijing, where China and Russia released a joint statement blasting Western "colonialism and hegemonism", supporting a multipolar world and more representation for the Global South, and calling for de-dollarization and expansion of BRICS. Ben Norton analyzes the historic document.  

Int'l Criminal Court Seeks Arrest Warrants for Netanyahu, Gallant & Hamas Leaders for War Crimes

Democracy Now!   The chief prosecutor of the International Criminal Court has announced he is seeking arrest warrants for Israeli Prime Minister Benjamin Netanyahu, Israeli Defense Minister Yoav Gallant and three leaders of Hamas: Yahya Sinwar, Ismail Haniyeh and Mohammed Deif.    The charges against Netanyahu and Gallant include starvation of civilians, extermination, intentionally directing attacks against a civilian population, among other crimes. The charges against the Hamas leaders include extermination, murder, taking hostages, rape, among other crimes.    " It places Israel's leaders of this genocidal onslaught on the Gaza Strip in the dock, " says Middle East analyst Mouin Rabbani, who explains why this will be " very significant " for Israel's allies and signatories to the ICC. " They now have to make a choice between Israeli impunity and obligations under the Rome Statute. " 

What UK did in Gaza is SHOCKING & no one's allowed to talk about it

Double Down News   EXPOSED: Britain's Secret Role in Gaza  

Netanyahu Doesn’t Realize How Dumb This Sounds!

The Jimmy Dore Show    

Resist this Genocide

Roger Waters   We the people are with you We must resist this genocide Or the existential battle for the human soul Will be lost  

Ireland, Spain and Norway say they will recognise Palestine as a state

Al Jazeera English   The European countries Ireland, Norway, and Spain have announced they will recognise an independent Palestinian state - which will enter into force by the 28th of May. Prime Minister Pedro Sanchez said his country had an obligation to act. Sanchez accused Israeli Prime Minister Benjamin Netanyahu of putting the two-state solution in danger, with his policy of pain and destruction in Gaza. Ireland's Prime Minister says that three decades after the Oslo process - we are further than ever from a sustainable peace settlement - and that this is the right thing to do. Norway's Prime Minister says a Palestinian state is a prerequisite for achieving peace in the Middle East. 

Why Israel Still Can’t Defeat Gaza’s Guerrilla Fighters

BreakThrough News   After eight months of relentless massacres on Palestinians, Israel has yet to achieve its main objective of destroying the Palestinian resistance. Despite suffering considerable losses, the armed factions’ main infrastructure and leaders appear to be intact, allowing them to recruit and strike back even in areas that the occupation long ago it had “cleared.” Jon Elmer, a contributing editor at The Electronic Intifada , discusses the strength of the Palestinian resistance and why Israel can continue to massacre, but can’t win. 

US-EU assets pushing color revolution in Georgia

Over 25,000 NGOs are active in Georgia, and most rely on funding from Europe and the US. A new bill aiming to reign in Western meddling has sparked furious anti-government protests explicitly encouraged by Washington. by Kit Klarenberg   Part 1   A dark political atmosphere is swirling over the Georgian capital of Tbilisi, and grows more ominous by the day. Prime Minister Irakli Kobakhidze has been told by an EU commissioner he will suffer the fate of Robert Fico, the Slovakian leader still fighting for his life after an assassination attempt by a Ukraine proxy war ultra. US lawmakers are moving to sanction members of the ruling Georgian Dream party, and in parliament on May 14, opposition MP Tako Charkviani threatened: “ Believe me, there will be a color revolution in Georgia. ” The cause of this tumult is a bill known as the “foreign influence transparency” law which would compel organizations to publicly disclose their foreign funding. For weeks, the streets of Tbilisi have been fi

How can the ICJ's orders against Israel on Gaza be enforced?

Al Jazeera English   The International Court of Justice has ordered Israel to stop its assault on Rafah. The order is one of three issued by the UN's top court in the genocide case brought by South Africa against Israel over its war on Gaza. Israel has long-declared it plans to intensify its assault on the southern city, saying it is necessary to dismantle Hamas. And it appears it plans to follow through with that strategy. The ICJ's rulings are final and legally binding. But it does not have a way to enforce them.