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Another $2.7 TRILLION In Debt “Discovered” By The Fed
Mac Slavo: The people of the United States, misled by its politicians, and plundered by its financial institutions, are swimming in so much debt that no one will probably ever grasp the truly staggering amount — if indeed it can ever be fully calculated.
Forget paying it all back; the Federal Reserve isn’t even apparently aware of how deep the crisis goes.
Officially, the U.S. was already $59 trillion in debt in 2015, but now the number is significantly higher.
When the Fed is changed its method of tracking and reporting debt numbers, and replaced a single Credit Market Instruments chart with two separate charts for “debt securities” and “loans,” it suddenly reported an additional $2.7 trillion.
That’s quite an accounting error! Zero Hedge reports:
Everyone has seen the chart of “Total Credit Market Instruments“, which as of its most recent update on March 31, 2015, was just over $59 trillion, or 330% of US GDP.
For those who have not seen it, as well as for those who are familiar with this chart, take a long look, because this is the last update of this particular data series, pulled straight from the Fed’s Z.1 Flow of Funds (section L.1), you will ever see.
[…]
We can only assume that the vocal outcry that emerged in the aftermath of the Fed’s release of its Q2 Flow of Funds statement missing this most critical of data sets on September 18, was so loud that three weeks later, this past Friday on October 9, the Fed released an official follow up explanation what exactly happened.
According to the Federal Reserve’s official statement,
With the September 18, 2015 Z.1 release, the classic presentation of the instrument category “credit market instruments” has been discontinued and replaced with two new instrument categories, “debt securities” and “loans”.
[…]
While the underlying instrument categories that make up the sum of debt securities and loans are the same as those in old “credit market instruments” concept, changes to a few of these categories make the new sum of debt securities and loans larger than in previous publications.
Of course, the acknowledgement of this additional sum of debt — piled on top of the already massive $59 trillion — was only made on a technical page for the Z.1 statistical report.
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Source: http://marketdailynews.com/2015/10/12/another-2-7-trillion-in-debt-discovered-by-the-fed/
