From the U.S. Treasury Department’s latest numbers of major foreign holders of treasury securities, we see that China owned $877.5 billion and Japan owned $768.50 billion in February 2010.

From their historical data, we see that China overtook Japan as the largest foreign holder of treasury securities as recently as September 2008, the month that the world’s economic system was thrown into turmoil by the collapse of Lehman Brothers and the stock and real estate market.

However, Japan isn’t the second-largest holder of U.S. treasury securities — the privately owned Federal Reserve Bank of New York is. That is, one of the 12 member banks of the illegal privately owned Federal Reserve System of the United States.

From their official numbers on April 21, 2010, they owned $771.57 billion in U.S. treasury securities — $3 billion more than Japan did in February.

Their parent organization, the Federal Reserve, lies about interest-free United States Notes, the currency that Congress issued to fund the Civil War, when the bankers were demanding 20-30% interest.

While United States Notes didn’t benefit the bankers, they clearly benefitted the American people, by not having to pay any interest during their entire lifetime, including to this very day. On the other hand, the Federal Reserve Bank of New York is receiving interest from their $771 billion in treasury securities, and as a member bank of the Federal Reserve, it receives a 6% annual dividend on its stock in the Federal Reserve System, with the proceeds going to private interests.

Even calculating with the current all-time low Federal Funds Rate of 0.25% on all the bank’s $771 billion in treasury securities, that’s nearly $2 billion a year in interest that could be saved by this and future generations, which will be compounded every year, and will reach $15-50 billion when annual interest rates reach a more historically recent level of between 2-6%.