Federal Reserve holdings of US Treasuries now exceed China's, with the Fed owning $1,108 billion and China owning $896 billion.
According to one analyst, the Fed will have accumulated $1,600 billion US Treasuries, a number likely to match China's and Japan's combined holdings by June.
China and Japan came to own their US Treasuries because both countries produced goods that Americans wanted to buy.
According one Resource Investor, the Fed simply turned on what Ben Bernanke has called the "equivalent of an electronic printing press."
