The US Federal Reserve, a private bank, is mulling issuing its own debt. There are several problems with this, one of which is that if the debt is backed by nothing, no one will buy it. If it is backed by the full faith and credit of the US Government it needs Congressional approval. Either way, the fundamental story is clear. The Federal Reserve has overextended itself and finds its balance sheet loaded with worthless assets that it can not sell. Karl Denninger has a nice rant about this on his blog that I recommend for your morning reading.