U. S. Owes Fed. Fed Owes Us!
Most Americans think of the Federal Reserve – if at all – as owning much of the debt owed by the federal government, managing interest rates and setting monetary policy. As recently detailed here, the Fed actually owes much more debt than it owns. Who are the creditors to whom the Fed owes its debt? Those creditors are you and everyone in the world who hold dollars accepted as payment for labor, a product or a debt. You see, the dollar is a promissory note – not real money – although the promise inferred is hard to find in writing and may be hopeless to enforce in any court of law.
