Feb 14, 2012, 11:47 am EDT
One of the excuses we often hear about our federal debt is that “we owe it to ourselves,” meaning our $15.4 trillion in debt really isn’t so bad since interest checks are sent to individuals, pension accounts and other private holders of U.S. Treasury bonds. But that’s no longer true.
We owe our new debt to the Fed!
On Friday, The Wall Street Journal reported the Fed’s Operation Twist has overpowered the most recent long-term Treasury bond auctions. According to the Journal, data compiled by Barclays Capital shows that since Operation Twist began in October, the Fed has bought $50.3 billion in new Treasury bonds maturing in 20 to 30 years, accounting for a whopping 91% of new long-term Treasury bonds. Read
Feb 13, 2012, 6:04 pm EDT
Even before the Barack Obama administration released its official budget blueprint, Republicans both on and off the campaign trail were roundly denouncing it as nothing more than a campaign document. They are outraged at the higher taxes, lack of entitlement reform and short-term spending.
While the four GOP primary contestants continue to rail against Obama’s record and ideas, they do so at their own peril with regard to general election voters.
Obama’s budget blueprint is filled with some of the same ideas he has been advocating since September and crystallized in the State of the Union address on Jan. 24. Among other things, he wants to spend more on education, job-training and infrastructure. He also wants to extend the payroll tax holiday and subsidize companies to keep jobs in America. Read