Fed's Balance Sheet: Week of August 19, 2009

Total Federal Reserve balance sheet assets for the week of August 12 of $2,047 billion (an run up of $57 billion from the prior week) consisting of:

• Securities held outright: $1,449 billion (an increase of $123 billion MoM, resulting from $44.6 billion in new Treasury purchases, $69.7 billion increase in MBS and $8.6 billion in Agency Debt), or $18.6 billion increase sequentially
• Net borrowings: $340.5 billion (the number was stale as of the update due to a lag in Fed H.3 borrowing update)
• Float, liquidity swaps, Maiden Lane and other assets: $258 billion (another major decrease of $78.8 billion month over month due to a continued reduction in Central Bank Liquidity Swaps ($21 billion) and ($54) billion in CPFF outstandings). The rate of decline sequentially has, however, slowed yet again. It appears the Fed is at the threshold for removing Swap and CPFF liquidity.

Last week's $300 million decline in Foreign Holdings was promptly reversed and this week saw an increase of $7.2 billion. Yet, like last week, the comparison between domestic and foreign weekly securities purchases is trivial: $7 billion versus $86 billion: the US is promptly becoming its own largest debtor... by a factor more than 10x. (click to enlarge)

Comments

[doubleguns:]

This could be small potatoes by 2012.

Aug 21 03:50 PM

[Jiang Nan:]

Look at it from the bright side, US is saving instead of spending money on import, if this trend continue, we may yet see a balance US CA soon.

Aug 21 06:53 PM

[Moon Kil Woong:]

The red MBS securities are getting to be opretty big. I guess that means Freddie Mac and Fannie Mae are on schedule to break the economy soon again (give it 1-2 years). So what comes afterwards, the Federal Reserve will become the GSE to supply home loans at irrational prices to real risk?

Aug 22 01:13 AM

[wheelbarrel...:]

So when US holds all of our debt will the taxpayers get the interest payments?

Aug 22 11:52 AM

[Corryfield:]

So, does China have the US where it wants yet? Or are we going Weimar/Argentina route? Euros and Gold still okay, or nowhere to hide?

Aug 22 05:36 PM

[Bill S. Friend:]

1 million seconds (of time) equals 11 days
1 billion seconds (of time) equals 33 years
1 trillion seconds (of time) equals 33,000 years
1 quadrillion seconds (of time) equals 33,000,000 years

Aug 22 11:22 PM

[RonaldReagan:]

It's Monday 8/24 and no new info. I can't take it. Dude, seriously I'll wait. What fool would not wait for genius? You are a new liberty, but same as the old one - and timeless as liberty is, it's all right and good.

Aug 24 09:34 PM

[fleeing omega:]

to ronnie: WTF?!
i think you better lay off of that stuff, maaaan..

On Aug 24 09:34 PM RonaldReagan wrote:

> It's Monday 8/24 and no new info. I can't take it. Dude, seriously
> I'll wait. What fool would not wait for genius? You are a new liberty,
> but same as the old one - and timeless as liberty is, it's all right
> and good.

Aug 28 12:37 AM

[LKofEnglish:]

so where's the deflation?

Aug 29 02:15 PM

[tdiaz:]

mr. durden,
where is your 9/27 article on gold manipulation?

Oct 12 05:07 PM

[logicalman:]

better yet.......where is mr. durden?!!!

Oct 13 08:38 PM