August 20

6:46 AM "As bonds yield higher". Out of 39 trillion (should be 40 by now) debt, "only" about 32 is "publicly held marketable debt". At current yields the interest rates for the 32 trillion debt cannot be one trillion as shown in the 7 trillion US Federal Spending budget which would mean an average rate of 1/32=3.1%. Not talking about the principals (buy back at maturity).

Those money ought to come from somewhere and coincidentally there is almost one trillion missing at Medicare.

7:33 Question. What is Federal Reserve doing with 6.3 trillions in notes and bonds part of national 32 or 40 trillion debt and why do Americans pay interest for it.

If we apply an interest rate of 5% to 6 trillion dollars we get about 300 billion a year or almost 1/3 of total debt servicing of 1 trillion budget of 7 trillion  Federal Spending Budget. What is Federal Reserve doing with that money?  

Federal Reserve was created as a backup in case of financial crisis. However nowadays it generates (constant) profit for private entities, drawing from interests from public debt.

9:52 Lenin's apparatchiks.