I. U.S. Federal Government Bonds
U.S. federal bonds refer to debt certificates issued by the U.S. Treasury to its patient government departments, local governments, various financial institutions, various industrial companies and residents in order to make up the fiscal deficit or develop office projects. American federal government bonds are divided into market bonds that can be listed and traded and non-market bonds that cannot be listed and traded. The latter is mainly issued in the form of direct purchase by Public Offering of Fund and the private sector, including government account series bonds, medium and long-term savings bonds and foreign bonds. The former is publicly issued to the public in the form of auction, which is the main financing form of the US federal government, including short-term treasury bonds, medium-term treasury bonds and long-term treasury bonds.
Second, the difference between federal bonds and US Treasury bonds.
The US$ 23 trillion debt means the federal government's $23 trillion debt. In other words, the debt balance of the US central government through the Ministry of Finance reached $23 trillion. In other words, the existing US Treasury bonds are $23 trillion, of which only a part is purchased by the Federal Reserve. Many U.S. Treasury bonds were purchased by local American investment institutions and investors, and some were purchased by overseas people. For example, China holds nearly $3 trillion in US Treasury bonds. When commercial banks are short of money, they can mortgage their assets to the Federal Reserve, which releases the base money to commercial banks.
The debt of the Federal Reserve is $7 trillion, which can be understood as that the Federal Reserve has put $7 trillion in base money into the market through various means. Only a part of them directly buy the national debt issued by the US Treasury, and the rest buy investment-grade bonds of commercial banks and other basic assets. As the central bank, the Federal Reserve provides the basic currency of all markets, that is, market liquidity. When the government is short of money, it buys government bonds issued by the US government and borrows money from the US government to provide liquidity for the US government.