WEB OF DEBT BLOG🔒 SSL Verified

Table of Contents

• ↓ PUBLIC BANK SOLUTION, 2013
• ↓ WEB OF DEBT 2012
• ↓ Pages
• ↓ Recent Comments
• ↓ Translate
• ↓ The Sovereign Reset: Escaping the Interest Trap with Greenbacks
• ↓ Top Alternatives to ellenbrown.com

6-Month Traffic Trend Estimate

Official Contact & Profiles

Visual representation extracted from ellenbrown.com

Content Snippets from ellenbrown.com

"In August 2026, the U.S. debt reached a gravity-defying $40 trillion, with an estimated fiscal year 2026 deficit of $2.1 trillion. Interest on the debt hit a record $1.4 trillion over the last 12 months and now consumes more than any federal program except Social Security and Medicare, eclipsing defense spending for the first time in U.S. history. Paid with borrowed money, interest compounds exponentially, making it the fastest-growing part of the budget, far outpacing economic growth. By 2036, the Congressional Budget Office projects that interest costs will double to $2.1 trillion, with debt held by the public reaching 120 percent of GDP. The CBO director has declared the trajectory to be “not sustainable.”"

"Increasingly, prominent analysts are saying the United States will have to “print” its way out. But using whose printing press, printing what?"

"Today, “printing” normally means Federal Reserve monetization (Quantitative Easing or QE). The Treasury first issues debt – bills, bonds and notes – which are sold by primary dealers on the open market. If there are insufficient buyers, the Fed as “lender of last resort” may buy the securities with “reserves” created with accounting entries in bank reserve accounts. But Fed Chair Kevin Warsh is trying to reduce the Fed’s balance sheet by selling federal securities, not buy them. And even if the Fed did engage in QE, it would not work today to reduce the debt or the interest. The Fed is required to return its profits to the Treasury after deducting its costs, but ever since 2008 it has paid the banks interest on their reserve balances (IORB) as a policy tool to control inflation; and since 2022, the total sum the Fed has paid in IORB has been higher than the interest it received from the Treasury on its securities. The net result is that instead of the Fed remitting profits to the Treasury, the Treasury now owes the Fed money to cover the gap in IORB, increasing the federal debt and the interest bill. The Fed printing press is running, but it is running in the wrong direction."

"Filed under: Ellen Brown Articles/Commentary | Tagged: federal debt, federal interest, Federal Reserve, Greenbacks, Inflation, NATIONAL INFRASTRUCTURE BANK, Public Banking, Treasury-issued currency | 4 Comments »"

Key Topics & Focus Areas for ellenbrown.com:

PUBLIC BANK SOLUTION, 2013

WEB OF DEBT 2012

Pages

Recent Comments

Translate

The Sovereign Reset: Escaping the Interest Trap with Greenbacks