It'd be one thing if "people" were buying the debt they're issuing as you suggest. But a lot of the Treasury debt is being purchased by the Fed. So they're keep

It'd be one thing if "people" were buying the debt they're issuing as you suggest. But a lot of the Treasury debt is being purchased by the Fed. So they're keeping it all in-house. Can you say, corruption? It's an artificially low rate which few people in their right mind would pay. Which is why the only taker is another arm of the government. Currently the Federal Reserve holds $1.825 TRILLION of US debt (Treasury Securities). I.e., the Fed owns more US debt than anyone else. China holds $1.22 Trillion, Japan hold $1.097 Trillion. http://research.stlouisfed.org/fred2/series/TREAST?cid=32218 http://research.stlouisfed.org/fred2/series/TREAST?cid=32218 http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt http://www.treasury.gov/resource-center/data-chart-center/ti...