The Fed's Balance Sheet 54 comments
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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.
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the balance sheet balances the asset on left side which is offset by liability and equity (or net asset/reserve)
On May 26 02:23 PM Dave Wrixon wrote:
> I know it sounds like a daft question, but why do they call it a
> Balance Sheet?
On May 26 02:32 PM dybydx wrote:
> its called balance sheet because it works like a balance (ie that
> little weight scale you see lady justice holding at the court house).
>
>
> the balance sheet balances the asset on left side which is offset
> by liability and equity (or net asset/reserve)
On May 26 02:32 PM dybydx wrote:
> its called balance sheet because it works like a balance (ie that
> little weight scale you see lady justice holding at the court house).
>
>
> the balance sheet balances the asset on left side which is offset
> by liability and equity (or net asset/reserve)
On May 26 02:35 PM FE812 wrote:
> We'll be paying ourselves back through inflation. That is afterall,
> the idea of this exercise correct?
Watch Rep. Grayson ask the question several different ways to discover that Elizabeth Coleman, the Fed's Inspector General, really has no idea what lurks within its balance sheet.
www.youtube.com/watch?...
Instead of the U.S. government simply printing money, unencumbered by anything, the Treasury Department creates new bonds, GIVES THEM to the PRIVATE BANKERS of the Fed, and then the Fed SELLS those bonds to the American people indebting Americans (to those odious private bankers) for every dollar of money printed!!!!!!!!
Also, when we're talking about "IOU"s, no one should forget the $3 TRILLION stolen from the Social Security "trust fund" (lol) - that will NEVER be repaid. Bye-bye "Social Security" for anyone under 50.
On May 26 02:38 PM linenoise wrote:
> Can't we just forgive the debt we owe ourselves? Oh right. Privately
> owned central bank. Nevermind.
The Federal Reserve needs to be abolished and a National State of Credit to monotize real productivity for the economy is needed to save us from ourselves.
And since we wont come to our senses any time soon roll with the punches.
Now, how does the Fed increase or decrease its "Equity", and what would happen if the Fed's Equity goes below zero?
A single entry does not make a balance sheet.
I suspect the author means the assets total. So, copied straight from Wikipedia and out of date already --
"Gold certificate account 11,037
Special drawing rights certificate acct. 2,200
Coin 1,870
Securities, repurchase agreements, term auction credit, and other loans 1,525,857
Securities held outright 967,070
U.S. Treasury 534,969
Bills 18,423
Notes and bonds 516,546
Federal agency debt securities 64,511
Mortgage-backed securities 367,590
Repurchase agreements 0
Term auction credit 455,799
Other loans 102,988
Net portfolio holdings of Commercial Paper Funding Facility LLC 242,431
Net portfolio holdings of LLCs funded through the Money Market Investor Funding Facility 0
Net portfolio holdings of Maiden Lane LLC 26,481
Net portfolio holdings of Maiden Lane LLC II 18,253
Net portfolio holdings of Maiden Lane LLC III 27,429
Items in process of collection 1,147
Bank premises 2,191
Central bank liquidity swaps 282,863
Other assets 56,855
Total Assets 2,198,613"
Its not that hard to find.
When will some common sense prevail? When heavily in debt - you don't go farther into debt to solve your debt problem! Come on! Get real! Stop this silliness before there is irreparable damage done. Its not to late. However the clock is ticking.