The Fed's Balance Sheet 54 comments
an article to
-
Font Size:
-
Print
- TweetThis
Always good to keep things in perspective. The most recent Fed Balance Sheet reading of $2.16 trillion is a doozy and is only getting higher, and a couple hundred bucks away from the highest ever recorded of $2.17 trillion a month ago. This is just the beginning: Bernanke and Co. have committed to monetizing $1.75 trillion of securities this year, of which $1.21 trillion remain to be purchased still. This means that the chart will likely pass the $3 trillion mark at some point over the next 3-6 months. As to the yield on these securities once the total is over $3 trillion, if the current trendline of UST pounding is any indication, look for something north of 5%.
Just as a reminder, the total foreign central bank holdings of Treasuries and Agencies is $2.7 trillion.
Very soon America's largest creditor will be... America.
Source: Federal Reserve H.3 and H.4.1 releases.
Related Articles
|
-
The Seeking Alpha 100
See allThe top 100 stock
market authors
selected for publication
Seeking Alpha 100 » -
Fastest Climbers
Authors with the largestSee all
increase in followers
in the last 7 days
Fastest Climbers » -
Top Commenters
Top commenters,See all
as ranked by their peers
Top Commenters » -
Top Instabloggers
The 100 most active
Instabloggers.-
1
David Fry
-
2
TraderMark
-
3
Don Dion
-
4
Cliff Wachtel
-
5
Mike Havrilla
Top Instabloggers » -
1
-
Top StockTalkers
TopSee all
StockTalkers.
Top StockTalkers »
CEO’s of banks and financial institutions going on TV and lying that their firms were strong and viable. (Angelo Mozilo, Jimmy Cayne, Ken Lewis, Robert Steele, Charles Prince, John Thain)
The President and Vice President of the United States lying to the American people that there were WMD in Iraq and proclaiming that Iraq was involved in the 9/11 attack.
The Secretary of the Treasury lying to the American people and Congress regarding the banking system in order to ram the TARP bill through Congress.
The Secretary of the Treasury and Federal Reserve Chairman threatening the CEO of Bank of America and forcing him to lie about the true losses of Merrill Lynch.
Mortgage brokers lying to their clients regarding the terms of the toxic mortgage products they were peddling.
Homebuyers who lied about their income and/or assets in order to qualify for a mortgage.
Alan Greenspan urging Americans to take out an adjustable rate mortgage when rates were at all time lows, while simultaneously saying that home prices on a national basis would never fall.
Treasury Secretaries and other high officials lying on their tax returns.
Financial advisors telling their clients to invest in a financial product because it makes the advisor more money, versus being in the best interest of the client.
Being politically correct in your speech rather than truthful because a constituent might be offended.
Politicians making promises to voters while trying to be elected which they never intend to keep.
When the President of the United States commits adultery in the Oval office and then lies to the American public.
theburningplatform.com...
On May 26 02:23 PM doubleguns wrote:
> But we can't pay ourselves back!!!
Sure you can, called the IRS, "you" will pay it back while the gov't plays footsie with the "fed" reserve and they both "bail out" their fatcat friends with the gov't not acting or even wanting to act on your behalf because they are circled by these "fed" fatcat friends everyday getting "lobbied".
It's the "good ole boys club" and until people wake up to that fact, that "your" gov't, irrespective of which side of the coin they fall on act on their own behalf first.
The rest of us peons are just the neverending stone they can squeeze.
The banks have already said that they will pay back "as much of the money as they can".
What exactly does "as much of the money mean" ???
This is a refreshing look as Alan Grayson outs the inspector general of the "fed" reserve as a lawyered up LIAR.
www.youtube.com/watch?...
"No state shall enter into any treaty, alliance, or confederation; grant letters of marque and reprisal; coin money; emit bills of credit; MAKE ANYTHING BUT GOLD AND SILVER COIN A TENDER IN PAYMENT OF DEBTS; pass any bill of attainder, ex post facto law, or law impairing the obligation of contracts, or grant any title of nobility."
Last I checked, this was never amended (activist jurists don't count).
The Fed is unConstitutional, period. It is the fourth, illegitimate, bastard branch of government, unaccountable to ANYONE besides its stakeholders (Goldman Sachs, et. al.) As are most executive branch organizations, Medicare, Medicaid, and unfunded mandates to states. As long as we keep electing phonies and frauds and appointing "empathetic" jurists to the high courts, we will descend into deeper levels of hell.
Table of M1 and M2 figures.
DIAF "cetin".
On May 26 07:43 PM StockCreeker wrote:
> The fed is corrupt. Our children will be burdened with this debt,
> and this will continue till there is nothing left. There is no democracy
> of the people-only one of the financial elite.
>
> Got lost, worthless troll
>
>
On May 28 08:33 AM James Quinn wrote:
> It will all collapse in a heap of burning rubble.
>
> theburningplatform.com...
Actually, that would be a 50% devaluation.
Case in point: it took 800 Korean won to buy a dollar a few years ago. When the value of the Korean won fell to the point where it took 1600 won to buy a dollar, its value fell by half.
You could eliminate the entire US debt by devaluing the currency by around 50% and raising taxes by around 20 points (meaning the top bracket would go to 55%).
Ultimately, that's probably what we will do. If we don't see substantial inflation over the next few years, a LOT of people are going to lose their homes, which will make for a prolonged depression. During long periods of economic trouble, people tend to turn against whoever is in power. The people in power won't let that happen.
The Fed's balance sheet is largely irrelevant. They have the ability to inject as much capital as they want. The only reason to restrain themselves is so that inflation can be controlled tightly. If they go too fast, people would get angry and that would mean politicians wouldn't get re elected. I would bet that they have a real inflation target of around 5-10% annually, despite their claimed 'ideal' of 1-2%. 5-10% would be just enough to erase the debt over a decade or two, while not being so rapid as to cause a panic.
If you don't think the Fed is under the control of 'the government', you're crazy. The fed will do whatever the people in power at the time want (bearing in mind that 'the people in power' include the people running the show at the fed).
The worst case for wealthy countries is really not 'that' bad. We have infrastructure, educated people, and huge amounts of natural resources. Sure, our savings might get shot to hell, but we'll survive.
Is the whole system rigged? Absolutely. But remember that wealthy people can ONLY stay wealthy if there is relative prosperity for everyone. If things get too bad, civil unrest will ensue and life will be substantially worse for everyone, including the very wealthy. Time and time again, we've seen what happens when people with too much power don't keep the people happy. It usually ends with heads being removed from bodies.
If you're really that convinced that everything is going to hell, why not go to the place that you think is doing something better? As near as I can tell, every wealthy country on the planet is in the same boat, and the rest of the countries are places you probably wouldn't want to live anyway.
On May 29 01:55 AM User 421764 wrote:
> Wow, basic math seems to really pass by some people. A 100% depreciation
> of the dollar isn't possible. Even Zimbabwe's dollar hasn't depreciated
> 100%.
>
> You could eliminate the entire US debt by devaluing the currency
> by around 50% and raising taxes by around 20 points (meaning the
> top bracket would go to 55%).
>
> Ultimately, that's probably what we will do. If we don't see substantial
> inflation over the next few years, a LOT of people are going to lose
> their homes, which will make for a prolonged depression. During long
> periods of economic trouble, people tend to turn against whoever
> is in power. The people in power won't let that happen.
>
> The Fed's balance sheet is largely irrelevant. They have the ability
> to inject as much capital as they want. The only reason to restrain
> themselves is so that inflation can be controlled tightly. If they
> go too fast, people would get angry and that would mean politicians
> wouldn't get re elected. I would bet that they have a real inflation
> target of around 5-10% annually, despite their claimed 'ideal' of
> 1-2%. 5-10% would be just enough to erase the debt over a decade
> or two, while not being so rapid as to cause a panic.
>
> If you don't think the Fed is under the control of 'the government',
> you're crazy. The fed will do whatever the people in power at the
> time want (bearing in mind that 'the people in power' include the
> people running the show at the fed).
>
> The worst case for wealthy countries is really not 'that' bad. We
> have infrastructure, educated people, and huge amounts of natural
> resources. Sure, our savings might get shot to hell, but we'll survive.
>
>
> Is the whole system rigged? Absolutely. But remember that wealthy
> people can ONLY stay wealthy if there is relative prosperity for
> everyone. If things get too bad, civil unrest will ensue and life
> will be substantially worse for everyone, including the very wealthy.
> Time and time again, we've seen what happens when people with too
> much power don't keep the people happy. It usually ends with heads
> being removed from bodies.
>
> If you're really that convinced that everything is going to hell,
> why not go to the place that you think is doing something better?
> As near as I can tell, every wealthy country on the planet is in
> the same boat, and the rest of the countries are places you probably
> wouldn't want to live anyway.
On May 31 08:42 AM F. Bradeen wrote:
> What good is a chart where I can't read the captions? Worthless!