Treasury Forced To Issue $1Trillion In New Debt

I just read this headline, "Treasury Forced to Issue $1T in New Debt in First 6 Weeks of FY14" When the Treasury issues bonds that the Fed (Federal Reserve System) buy it is running the printing presses. “At the close of business on Jan. 2, the Federal Reserve had owned $1.661 trillion in U.S. Treasury securities. By the close of business on Feb. 6, it owned $1.7172 trillion—an increase of $51.1 billion for the calendar year,” CNSNews notes.
“Thus, the Federal Reserve’s purchases of U.S. government debt in this calendar year have exceeded the Treasury’s net debt issues by about $3.9 billion,” the report adds.

Foreign - $5.724 trillion
Federal Reserve - $1.794 trillion
State and Local Government, including their pension funds - $703.5 billion
Mutual Funds - $946.4 billion
Private Pension Funds - $457.7 billion
Banks - $341.4 billion
Insurance Companies - $263.3 billion
U.S. Savings Bonds - $181.7 billion
Other (individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors) - $1.497 trillion. (Sources: Federal Reserve, Factors Affecting Reserve Balance, March 28, 2013; Treasury Bulletin, Ownership of Federal Securities, Table OFS-2, as of March 2013.

As you can see the Feds are second on the list of who own the most US debt. When the Feds buy the debt it is a means in which the government can lend itself money, when the government, i.e., the Treasury, want to sell more debt and the open market will not buy them the Feds step in and buys whatever is left of the unsold debt. It is in fact debasing the dollar when it does this, e.g., inflating the cost of things by putting so much money in circulation chasing the same amount of goods available to buy forcing the prices to go up. You do not see this in the government reports on inflation because some years back they changed the things they count in the basket of goods which they use to measure the cost of living. But you see it when you go to buy the stuff you need or want to live the life you wish to live.

Consumer Price Index Has Been Reconfigured Since Early-1980s So As to Understate Inflation versus Common Experience .  CPI no longer measures the cost of maintaining a constant standard of living. CPI no longer measures full inflation for out-of-pocket expenditures.

With the misused cover of progressive academic theory, politicians forced significant underreporting of official inflation, so as to cut annual cost-of-living adjustments to Social Security, etc. Politicians look to expand further the concept of artificially-suppressed cost-of-living adjustments in current budget-deficit negotiations, through the use of the Chained-CPI. The CPI is used to adjust retirement benefits, private income or to set investment goals and impairs the ability of retirees, income earners and investors to stay ahead of inflation. Understated inflation used in estimating inflation-adjusted growth has created the illusion of recovery in reported GDP.