The Fed Just “Discovered” Another $2.7 TRILLION In Debt: “Quietly Boosted Total Credit”

by | Oct 12, 2015 | Commodities, Headline News | 57 comments

Do you LOVE America?


    Illustration by David Dees.

    Illustration by David Dees.

    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.

    In other words, it wasn’t considered news that the national debt jumped, suddenly, to an official $62.1 trillion. There was no press statement, it was just a quiet footnote.

    Like the $2.3 “missing” trillions (announced just the day before 9/11), these enormous sums are reported to the public with little explanation and a barely-audible voice:

    Even trying to read the Fed’s dizzying statement is enough to make anyone not trained in financial dribble become sick or fall asleep.

    Moreover, the change in Fed reporting makes it even more difficult than before to follow its actions, and focus on the significant and worsening problems the country faces. As Zero Hedge notes:

    And so the Fed has managed to kill two birds with one stone: it no longer provides a simple, one-stop-shop way to reconcile the total US credit stock, and it quietly boosted total US consolidated credit by $2.7 trillion to $62.1 trillion as of June 30, 2015.

    The details of how and why are less important than the fact that the U.S. debt is soaring above the clouds, leading the dangerous path of global debt.

    Back in February of this year, a report showed that global debt rose sharply in the wake of the 2008 financial crisis, growing at a faster pace than ever before, by a stunning $57 trillion — that’s the increase, not the total.

    Personal debt ain’t pretty either, and many foreign countries, U.S. states and local governments and other entities are at or near a breaking point, unable to pay back their debts, or even service the interest. When they default, as Puerto Rico has nearly done, it threatens to tank entire markets with it.

    Quite clearly, no one is paying attention, and perhaps no one is even in charge of the rampant, out of control spending that ensures that Americans now, and for generations to come, will be slaves to debt, and to the institutions that hold those debts.



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      1. anyone thinking that this is ever gonna get “paid back” is living in a fantasy world

        it will be war and death by a thousand cuts .. stack em and rack em .. or starve and have your head blown off
        those are your only choices

      2. Gosh, I wonder how much $ Puerto Rico needed to prevent their default? Maybe 2.7 trillion? OR, remember how the U.S. has been saying for awhile now that the national debt WAS frozen? Stealth QE?

      3. What’s $2.7T amongst friends?

        This is where all the gold scoffs scratch their head.

      4. Most people do not understand the significance of this chart. I don”t. I do have a gut feeling that un payable debt is not a good thing. There is an entity somewhere that will get nervous and liquidate the debt it holds and the whole thing will come unglued. When Panic starts, SHTF.

        • Unpayable? Yep…but when the NWO finally takes over, it will make great blackmail/extortion money.

          Example: fed: Well, if you step down and submit to the NWO, they’ll FORGIVE your debt and you can start all over…

          US: Where do I sign, and how much do I get?

        • If you can find it, watch the movie “Margin Call”.

          That’s probably the way it will go down….across the board.

          There are so many bubbles right now…student loans, real estate, car loans, etc, etc, etc.

          It will be like dominoes. At some point, something will trigger it and then all hell will break loose.

          Initial cash crunch (deflationary), followed by hyper-inflation as essential commodities become unobtainable.

          It’s called SHTF.

      5. Well if nothing happens at X buildings, that means nobody is investigating it so they didn’t have to blow up 3 buildings in a cover up over these trillions. Things are obviously getting better.

      6. Q? If there is a gov shutdown next month, does the Federal instant check system for firearms purchases get shut down?

        • No, NCIC checks do not get shut down. 85% of the Federal Government does not shut down. Only things like the National Parks.

      7. I was on downdetector a little while ago looking at, among other things, the Southwest Airlines computer glitch that has inconvenienced so many travelers over the past two days. While I was there, I saw that SNAP had some recent problems as well. (SNAP and EBT are new codewords for foodstamps.) There is so much fraud in that system that there is a big chance a lot of that missing money got flushed down that dirty toilet of a social program. The comments are amazing. These folks have computers and phones to be online, which implies paying for a server or sitting at a public wifi spot which probably has a “help wanted” sign out. They are saying how hungry they are.
        Yes, this is where the disconnect lies. I am sorry you are hungry, but I never have owned an iphone or paid for an expensive cell plan. I have driven old cars into the ground and been sneered at for it, but I drive a paid off Lexus now. I don’t have acrylic nails but I ate a filet mignon topped with crabmeat the other night. I clean my own house, but have no problems dropping 2K to see my grandbabies in Japan.
        I sometimes wish there would be just a few more glitches in the system to get these folks to realize this EBT system is doomed. They might use a little of today’s money to buy an extra can of green beans or yams. So many people legitimately need help, but many ride the system for all it is worth. I had a former friend who did that. Had two adolescent kids so messed up they were setting their own hair on fire, then decided to have two more babies. Totally irresponsible- on the dole with student loans well into her 30s.

        • No, sorry, they did not flush over 2 trillion dollars into foodstamps.

          I hate to tell you, but the foodstamp program is but a tiny FRACTION of our debt, fraud included.


          Get a clue stupid, and stop blaming the vulnerable for the warmongers’ tricks. Nobody cares about the poor enough to steal 2 trillion dollars for them…but they DO care that much about ousting ASSAD and taking over the Syrian oil fields.

          Stupid sheep. The poor are the least of our worries.

          • wow. Sixpack, your name suits you. Feel free to disagree, but stupid is as stupid does- and it’s pretty stupid to pick fights and name call folks who are new to the board.
            Anyone who read my post can see I am not blaming the truly vulnerable and I did not say that all of the trillions went to welfare fraud. All I can guess is that I struck a nerve talking about welfare benefits with you. So be it.

            • If you think “Stupid Sheep” was aimed at you, it wasn’t. That’s my term for the low IQ voters out there who vote only for their own free shit…not you. Sorry, my bad.

      8. So what’s the problem? If I cannot pay 50 Trillion, I cannot pay 60 or 70. Just keep stacking.

        • Sarcasm noted, but for those don’t understand what’s at stake…
          The only reason we can continually increase our debt is because foreign nations continue to show up at the T-Bond window each week. At some point, these nations will no longer be willing to accept our debt instruments at the current rate of interest. This unwillingness will arise because of our rampant money printing. Once our financiers reach this point, they will have to be “prodded” to let go of their cash in exchange for a T-Note. The tool to prod them is a higher rate of interest.

          A higher rate of interest will be the primer event that starts the economic collapse.

          When that event happens is the only unanswered question at this point…Can’t be very long now.

          • at least DAD “gets it”!…good post.

          • Foreign nations have already stopped purchasing our debt. The reason interest rates have not increased yet is because the Fed is monetizing the debt by giving money to banks and having them purchase bonds from the Government. Since the media is merely the government propaganda arm and at the very least lies by omission its all being done in broad daylight and nobody is looking. Well none of the American sheeple are watching (their to busy with the NFL and Kardashi) but the world is, hence the fact they are not purchasing bonds and in fact are dumping them.

            • Is it true China is dumping our bonds/ treasuries now? And is there any truth to the stories I am reading that we are trading them large tracks of land in our country? I wish I had written down the source. But I have read large tracks of land in Michigan, New York, and Montana. Does anyone know the truth?

              My thanks to all who post here. I have learned much from you all through the years.

              • Actually, not sureif it is YEARS, but I always read all your comments!

              • China does not have very much US treasuries any more. They sold off sometime ago.

          • Let me set the record strait.

            The Federal Reserve controls the rate. That is why it is currently ZERO.

            When other nations or fund managers stop buying treasuries the Federal Reserve will monetize the debt. Basically they will print money and buy bonds with the printed money.

            Which they have done for 5.5 trillion of the 18.7 trillion in national debt already.

            Since the government owns the debt they owe, they can just wipe it off the books and start anew.

            So, what this really means is:
            Money printing creates inflation. Inflation is passed onto the American Citizen and costs us more to buy goods and services.

            So in fact, when you say that the debt will never be paid back, I say that we are paying for it right now through inflation!

            • The opposite side of Fractional Reserve Banking is that when loans are not serviced that money literally disappears. The Federal Reserve balances the books so to speak. The real problem lay when money from no where QE 1-infinity makes it into the system funding government and banks purchase equities very falsely inflating the stock market which back feeds into the economy when stocks are sold. Inflation hasn’t ignited as it might have although food certainly has dramatically risen because the velocity (spending) is so low. When you were making $30 / hr and now due to free trade make $10 you tend to put off that new car in favor of shelter and food.

              In the end the globalist transfer of manufacturing to third would labor is the greatest root cause.

            • The problem with your strait record is that the government owns nothing. Your correct that monetizing the debt will eventually create inflation, however the US guaranteed the world it would never do this in order to have the dollar the reserve currency. Because the dollar is the reserve currency the US has been able to export most of the recent inflation due to the money printing. This WILL NOT continue because nobody with half a brain will allow lazy Americans to live high on the hog while they starve. I wouldn’t and neither would anyone else. Since shitbags never relinquish power once they have it, the criminals in Washington will take us to war in order to maintain the status quo. All anyone has to do is look around and they can see we are already well on our way. Normally I would say lets do it and feel relatively certain the US would win the day. With Obama and the communist takeover of the country I believe the result will be what the founders warned of, the country will be brought down from within. Don’t believe me, don’t care. Been around long enough to know a shitbag when I see one and I see lots in Washington and they on both sides equally. I miss America.

              • “however the US guaranteed the world it would never do this in order to have the dollar the reserve currency”


          • I for one, wonder just how much the value of the dollar is tied to our world hegemony…..the fact that we’ve have been the big dog in the neighborhood militarily.

            Nixon via Kissinger negotiated a deal with the OPEC nations back in the 70’s that they would sell their oil for dollars only. In turn, we would insure the regional security and keep them in control of their respective populations, as well as insure that nobody got too far out of line.

            Look at what has happened over just the last few years. Russia has now strategically cleaned Obama’s clock in Syria. Iran got a sweetheart deal and now threatens not only the region, but the entire world. Yemen is gone. Iraq is making nice-nice with Iran.

            At some point, the Saudis are going ask themselves why they are continuing to deal with us while we inflate our currency and bury ourselves with debt. They send us oil and we send them increasingly worthless fiat assets and have totally reneged on the deal.

            One day we’ll wake up and find out that they have hooked up with Russia and the other BRICS and the dollar will be history. Interest rates will soar and that 60 trillion dollar debt will mushroom. Oil won’t be $50 a barrel…it will be $500 a barrel, and what is left of our economy will go right down the toilet.

      9. Thing is…

        You can’t even tell me “the public should rage against government spending”.

        The public IS government spending.

        Like ok, stop voting them in. Stop going and drawing welfare. No one’s forcing you to go get your check. Get a job, save for when you’re laid off.

        Now in fairness you can rail till the cows come home about ridiculous healthcare and college costs. Sure I’ll buy that to a point. Taxation not so much, you wanted all this “free shit” and it ain’t free. So… oh well huh?

        • Here’s another one:

          The Most Dangerous Vaccine Adjuvant Will Be Used for Older Folks’ Flu Vaccinations

          ht tp://

          • Was in the drug store the other day and one of the gals in the Pharmacy asked me if I’d had my flu shot yet.

            I said “Nope. Don’t do flu shots.”

            It will be interesting if they try to mandate them at some point.

            My response will be, “You have two choices. Kill me or leave me alone. I’m not taking the shot. If you elect to kill me, bring more than one body bag. You will need them.”

            • They have a third choice.

              Don’t sell you anything and ask you to leave the store.

              In fact, I imagine that will eventually become what they are legally required, or at least strongly encouraged, to do.

      10. Off subject:

        Did anybody get a flu shot:

        Don’t. They have the same ingredient as the shots that caused Gulf War Sickness.

        On subject: The 2.7 $trillion. I stole it.

        • In this day an age, with all the knowledge and information on flu shots / vaccines. Why would anybody consider injecting this toxic waste into their body on purpose?

          FLU SHOT – there is no scientific study or evidence that these work – It’s a gimmick and a fraud!


          • and it costs a crap load. $29 a shot in my town. For that price I could get a blow job and a six pack. Which do you thing i will choose?

            • LMAO John, thanks for the chuckle!

              • The Most Dangerous Vaccine Adjuvant Will Be Used for Older Folks’ Flu Vaccinations

                ht tp://

            • Buy one of my deluxe commodes that has cold storage in the tank for beverages. It also has a reclining seat that allows for getting a blow job while taking a shit. Credit is available and terms are easy. Get a suck job and take a healthy shit today, all at he same time!

      11. Debt has reached the point where the amount is no longer of any significance.

        We are not going to pay it because we can’t pay it, and no one else in the world can pay theirs either.

        Get ready for a new system, start figuring out how to keep a hold on what you currently have so you still have it after the shift is made,

        • The answer is to get out of debt.

          They will issue a new currency, like ObamaDollars. Then pass a new law that all current debts like credit cards, car notes or mortgages will be paid in ObamaDollars.

          The problem being is that your car note will have to be paid in ObamaDollars but one ObamaDollar will be worth only 10 real dollars.

          so in reality you will owe ten times more than what you did before.

          • Yeah, I’m sorta expecting something like that.

            Justification for it would probably fall under the Constitutional provisions about impairing the obligations of private contracts.

          • John Stiner:

            I believe as you do. Getting out of debt is vitally important. Interest eats up your income anyway so having debt is very bad anyway. I fear that once a totalitarian state is fully established, we will be inprisoned for defaulting on our debts. If we have to pay 10X our present car note, they could reposes the car and send us to the gulags (debter’ prison).

      12. Debt can only be reconciled by paying it off, which will not and cannot happen; or forgiveness, which will not and cannot happen; or default, which can and will happen. Each carries its own consequence. The only question remains, which will the government and Fed decide, what will affect their position of power the least. The only way government could even begin to pay down debt would be to print money on a scale so vast the currency and the economy would be utterly destroyed, inflation would occur like in The Weimar Republic, and we know what happened there. There will be no forgiveness because foreign creditors did not just give us trillions and trillions of dollars for paper they thought had value, they’re going to want it back with interest, otherwise some really ugly scenarios will play out regardless how much the government tries to negotiate itself out of the mess. We could see the confiscation of national assets to hand over to foreign creditors because they won’t want our worthless paper dollars. And we would probably see foreign creditor governments given special rights, benefits, and privileges superseding our own. Outright default (even partial) would completely expose the myth of “full faith and credit of the US”, there would also be long-term social and financial consequences for this one.
        There is no doubt interest rates must go up, and they will; the question is will they go up in a rational way or a reactive manner. I’ll let you answer that one. The laws of economics will eventually win out because they are more powerful than any government. Until that point when balance and rational market rules are restored the economic situation will get worse until it simply cannot be sustained.
        Do you believe this titanic mess which developed over the years and has become so insidious and unsolvable is accidental? Or just happened? There is an old saying-“if you want to understand something follow the money.” There is another-things are the way they are because it benefits someone.

      13. Who cares anymore? What’s another $2-3 trillion? We is flocked- flocked- flocked!


      14. The US is a debtor nation. That means we are a slave to the nations that hold our debt. We are starting to see that play out more an more. I read a story earlier about a NASA spokesman stating that we have to include china in our future space projects…

      15. A trillion here and a trillion there. After a while it starts to add up to be a considerable amount of money.

      16. Slice up California,New Jersey, New York and a few others and pay off our debts with them. Kill two birds with one stone.

      17. No one really cares anymore about the DEBT. Its so last year. Just ask anyone on the street if you want to know.

        • I don’t know if your just being rhetorical or you really believe no one cares about the DEBT. Well, maybe the huge majority of citizens don’t care now, but they will surely care when the inevitable consequences of the debt play out.

      18. Don’t worry they can print more or just do a digital markup. It’s just a green light to all the global central banks to go ahead and print money.

      19. 62 trillion in debt . Ok. 62 million seconds is 2 years. 62 billion seconds is 2000 years . 62 trillion seconds is 2 million years. 62 trillion one dollar bills laid end to end will go around this planet. Two hundred and fifty thousand times. GAME OVER?

      20. Banks who needs the old banks or their new system? Who would trust anything they feed us?
        We the people can start our own financial institution, walk away from what they try to force on
        The population. A start is your own bank at home! Hell the banks of today don’ t pay anyone
        Interest that amounts to a hill of beans! Create a job for yourself,family that no one can take
        From you and try to become more self reliant it will piss them off! They need us we don’t
        Need them! Remember more of us than them………

      21. How do you lose track of 2 trillion? somebody in banking/government needs an accounting course. The dominoes are starting to fall.

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