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Bernanke Wants To Shrink Fed Balance Sheet To $1 Trillion Or Less
Disclosure from Bernanke in cross by Ron Paul. We are now at $2.3 trillion. The withdrawal of excess $1.3 trillion in reserves will kill the pursuit of risky assets.
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Bills to the State are already rolling in, those idiots that think Helicopter Ben is going to save them are going to be in for a rude awakening. The financial system has peaked, what happens after the peak, well the collapse. States suing the Federal government right now are idiots, they can take their State back anytime they want.
Helicopter Ben is not going to save your State.
The Federal government is not going to save your State.
Only you and your State can save yourself, tick tock.
http://worlddarkestdays.blogspot.com/
I just don't understand this fixation with the Fed in terms of the really big picture ie our lives. Perhaps it might have made a difference back in the day when currency was a relevant component of total money. And I guess it makes a difference to various market players.
But nowadays, credit-money is such a significant portion of the total money supply that it essentially renders the Fed impotent. Which is of course is born out by the fact pattern: monetary policy has been directed towards manipulating private sector behavior by suppressing both gov't/mortgage interest rates & fueling an equities bubble.
But it's only a desperate attempt to fool people into thinking there has been an economy recovery and trying to convince them to re-lever ie get in on the ground floor now or be priced out!
The bottom line is that there isn't any economic recovery, nor in fact, has there been a functioning economy for over 20 years. It's been nothing but mortgaging the family silver to play a little bit longer with borrowed money.
Now the bill is coming due. There isn't a damn thing BSB can do with a paltry $1-3T or $5-15T (depends on what's being included) currency stake betting against quadrillions in credit-money. He knows, the power elite know, and one day, perhaps soon, the states and their citizens will know it.
And they won't like it; no, not one bit at all.
It's the face of our pain. Sure credit money can be made out of thin air by any part of the banking cabal, but Zimbabwe Ben is the face of our pain. It is one of the primary support pillars holding the ponzi up. After all without the ultimate backstop, the printing press it might be possible for the greed of the banks to kill themselves, instead of killing us.
I do agree most of this is just theater. In a con game you have to keep the mark under control. When the mark knows he's being conned that's when the con breaks down and the conman needs to get the hell out of Dodge! The problem is when the citizens find out they will also find out they are the final bag holder, and all that paper wealth will disappear into the void from which it was created.
I disagree that Ben & the Fed are the last remaining pillar holding up the ponzi. The ponzi ie global credit money numbering in the $quadrillions(?), died in 2007-2008.
It wasn't wounded and/or injured - it was killed. That means there is no bringing it back to life, which means there is no mechanism by which it can be restored. (That is, erecting supporting pillars.)
What we are seeing is the mortician (Fed) applying make-up. So all the activities taking place in the mortgage/Treasury arenas, along with the equities markets, are just hors d'oeuvres for those attending the funeral.
They know it, and soon others will know it. My focus is on what money system we can craft after the crash. We've got to kill the debt-based money system by the roots. It can never be allowed to once again consume & murder society.
What is supporting the quadrillion dollar pyramid? The promise of of the backstop of hte sovereign nations, their land and their "citizens". The FRN is backed by the full faith and credit after all. This system would not have been possible without a sovereign backstop for risk because the temptation to swipe a competitor and destroy them would be to big. But as they are all backstopped and backstopped by the same entities then when one goes they all go. The central banks are the risk bearers, and they pass the risk onto us. And naturally the whore political class would hand over our land or our very lives to their masters.
Now I am also interested in what money system will be used after the crash. I'm inclined to believe it will be fiat/debt again simply because the masters of the universe will own most of the productive assets and can steer society again. After all people are stupid and don't know what is happnein.g Even in a crash it's highly unlikely they will get educated about how the system works. They will be served a sound byte sized answer about why what happened happened are most likely get marched down another debt based fair currency.
Sound money is the only answer, but the masters of the universe will not abide by it. And their media mouthpieces have waged a successful campaign against it.
It wasn't wounded and/or injured - it was killed.
Sadly, I agree. I am quite literally operating on the assumption that we crossed the event horizon some time ago, and that what we are witnessing now is nothing more than hyenas fighting over the corpse. It is helpful to have had this past few years to begin the adjustment process, but I know it's going to suck once it really gets going. I am already seeing things getting "harder"; it's harder to get tech support, it's harder to buy something that actually works; people are edgier and much less patient, so they're feeling it too. I know that's going to get a LOT worse.
in the long term i agree, but in the short term Zimbabwe Ben can print a lot of cash money and his mechanism for distributing it sucks, so those closest to the source get rich as the flow of cash money outpaces the destruction of credit money, those furthest from the source are in the opposite position. It is pure wealth distribution, but not in the way Obama wants - the ship is sinking, but from the stern first. Those at the front will get to party a bit longer and with a nice view, until the whole fucking ship goes under.
"It is pure wealth distribution, in the way Obama wants"
Fixed that for you. He was the banking candidate, and his loyatly is to his masters. The whole spread the wealth around was just talk, it's about all the wealth in the hands of hte connected, rich, and powerful. Look at Argentina or other dictatorships. They promise a wealth to the lower classes to enable them to rob the middle class and the not connected rich. They then take the money and kick maybe 10% of the loot to the poor to keep them in their pocket.
Trust me Barry is a smart guy, and his advisers are not stupid. They know what they are doing. Bank robbers and know that they are robbing a bank, it's not done by accident.
I think you meant to put a strikethrough on the 'not'. I've had that same problem with strikethroughs not showing up on my posts.
text with strikethrough
text without strikethrough
see?
Yeah I just noticed that myself and tried to sneak in an edit to bold the in. Wonder how long that has been an issue, have not tried to strike through before.
it hasn't worked for me in a long time.
Yes Sir! He is the Banker's Candidate without argument.
http://www.projectcensored.org/top-stories/articles/22-obamas-trilateral-commission-team/
11 of the current administration's top positions are listed on the official Trilateral Commission membership list:
According to official Trilateral Commission membership lists, there are only eighty-seven members from the United States (the other 337 members are from other countries). Thus, within two weeks of his inauguration, Obama’s appointments encompassed more than 12 percent of Commission’s entire US membership.
Trilateral appointees include:
* Secretary of Treasury, Tim Geithner
* Ambassador to the United Nations, Susan Rice
* National Security Advisor, Gen. James L. Jones
* Deputy National Security Advisor, Thomas Donilon
* Chairman, Economic Recovery Committee, Paul Volker
* Director of National Intelligence, Admiral Dennis C. Blair
* Assistant Secretary of State, Asia & Pacific, Kurt M. Campbell
* Deputy Secretary of State, James Steinberg
* State Department, Special Envoy, Richard Haass
* State Department, Special Envoy, Dennis Ross
* State Department, Special Envoy, Richard Holbrooke
There are many other links in the Obama administration to the Trilateral Commission. For instance, Secretary of State Hillary Clinton is married to Commission member William Jefferson Clinton.
Secretary of Treasury Tim Geithner’s informal group of advisors include E. Gerald Corrigan, Paul Volker, Alan Greenspan, and Peter G. Peterson, all members. Geithner’s first job after college was with Trilateralist Henry Kissinger at Kissinger Associates.
What!?!? Larry not in the club???????
Personally, my fixation with the Fed is due to the fact that they had a major hand in causing the mess we're in; it is not that I expect they will (or even could) get us out of it. The Fed's relevance to the big picture is that there will be no real recovery until they are gone and until a real currency is in use. Their main function (and that of most of the rest of the world's central banks) is to suppress the use of any hard, objective, market-based currency. That's why they were created, and that's why they're still there.
"The Fed's relevance to the big picture is that there will be no real recovery until they are gone and until a real currency is in use."
Agree with you 100% on that. Under a sound currency, deflation is a natural event, and it isn't bad, because you don't have lenders leveraged 40 to 1.
A fiat currency will kill a society, not just an economy, but a society, sooner or later. A God-like worship for the master of the currency only hastens the downfall.
DEFLATION BABY!
That will certainly kill-off once and for all those "green-shoots"
I wonder how low stocks will go? I'm predicting sub 700 3 months after Benny pulls the trigger. Of course benny could be lying about his plans -- NAH!
Does he also "want" a strong dollar?
He might, but nobody voting for all the current deficit spending does. Inflation is the only viable route the US has of ever being able to get the debt we're racking up these days under control.
If this were an actual fiat currency and not fiat+debt, that might be the case.
I guess we'll eventually tell our bondholders what we told the Iraqi Kurds. "You screwed up. You trusted us."
That's easy - he just has to mark-to-market the balance sheet. That should get it below $1trillion in real value.
That's about right.
Brilliant. It's funny because it's true.
Does he have $1.3 T of truly marketable securities among the mountain of crap on his balance sheet?
Out of his current 2T+ balance sheet, he could probably get 1.3T if he sold it all at market.
Let's assume that happened: where does the $1Trn in losses go?
Does the Treasury have to realize that directly, seeing that the Fed is supposed to be "banker to the Treasury"?
Or does Ben just print the $1Trn, throw it on the asset side, and dilute the fuck out of the currency?
The 1 Trillion dollars goes out into the market. Since they printed the money to buy all that crap, and they can only get some of that money back when they sell the crap again, they have inflated the money supply. God help us if that money is lent to anyone.
Got Gold?
Bingo! We have a double entry accounting winner!
Now you guys know where the elephant is headed. So you know where not to lie down and take a nap. Squish.
...after printing the 1.3T required for the buyers
How the hell is he going to manage that? He is the only buyer for most MBS and he is helping prop up treasury sales. If he sells he kills the market and will not be able to sop up the liquidity. When the only buyer turns into a major seller I hear that's bad for the asset price.
Hell I could see the comedy where he clears his pool of "assets" and still has a monstrous balance sheet, that would be a hoot. Then he's basically out of the game, what could he do turn around and buy them again?
He's not going to clear the asset sheet. It's just a smokescreen. He's more likely to double it then to halve it. Withdrawing that level form the balance sheet with outright slay all markets, assuming it's even possible. It's politcally not feasible, to many congress critters will weap.
Agreed, I bet it will be $5T before it is $1T, he has no choice.
Agreed, trying to reverse the process now? Like turning around an aircraft carrier. You will continue forward on current course for some time.
+100
Sure he will. When pigs fly out of his *ss. This government has no chance unless it inflates out of this mess. Only way to inflate our way out is to keep interest rates at 0, and continue to print money at a rate of 2 trillion per year.
My ass, he's going to dump that crap on the pension funds and keep buying shit from the banks. Maggot.
So basically, he's just going to mark to market the Fed's assets? Awesome, no trades to account for.
I know I am going to catch heck from all the resident gold bugs, but I just don't see inflation as the likely conclusion to this ongoing financial crisis. Sure, managed inflation courtesy of the Fed has kept deflation in check so far, but think about mountains of worthless debt still on corporate balance sheets. I've read the backlog of un-foreclosed homes will take a decade to work through. The Fed is just going to supply unlimited credit? Nobody is buying it. Accepting the necessary deflation at least lets the US keep the currency intact even though the economy will suffer. Hyperinflation will kill both. Besides, hyperinflation will send rates to the moon. The govt will collapse if has to pay normal interest rates. Deflation will at least keep rates low.
It's all up to Zimbabwe Ben IMHO, there is still $4T of agency MBS he could buy, and my bet is he does.
Yeah, um...tax receipts are collapsing still.
So, unclear as to how the gov funds itself without the income to do so. The debt is still exponentiating.
Is exponentiating a word? I like it.
We have reached the ultimate decoupling--from reality. The govt apparently doesn't need income. It needs the printers to not run out of ink. Look, the Treasury auctions off bonds, and most likely the buyers are the Fed since no foreign or domestic entities with an ounce of sense would buy that crap. It's as rigged as it can get. I suppose we could see if the sold bonds (large amounts) could even be redeemed for cash. They might be traded around, but where the rubber meets the road-- when there is a "redemption holiday" -- all that paper will be expensive fish wrapping.
I guess the ideal scene would be to thwart our foreign debt holders the ability to cash anything in, retaining assets here (what little there are). Local plebs still seem happy to accept FRNs, which they spend within the country. In fact, if you're bored, burn a $100 bill in front of the avg pleb--they will be positively apoplectic at your brash waving of private parts at the Fed's all mighty dollah.
And I want my net worth to be over $1 billion by the time I reach retirement. The probability that Bernanke and I will reach our respective goals are zero. Nice sound bite for the masses....
Dude: your IRA will probably be $1B by retirement.
Sadly, a beer will cost $50 million.
Cheers!
So it must be worth 5x right now.
mmmkay Ben... now go play with your new friend Janet Yellen and show her where the printing press speed control is. She likes debasement, just like OMGObama's Rohmer.
What a f'ing joke... Are there really people that believe this shit that comes out of the fed?
Double B could go "all in", and sell whatever gold he has left to reduce the assets of the FED.
Why doesn't he sell all the Fed's gold? If he believes banks should have no reserves, why should the Fed have any backstop at all? After all, it is all monopoly money anyway?
OT, but Bush wipes his hand on Clinton's shirt after shaking hands with Haitian refugees.
LOL
http://www.youtube.com/watch?v=wlgM2urPB8Q
Just looked at the video. Twice just to make sure.
That says it all. Total contempt for others while high regard for his right to do as he pleases. It's not an accident or a misplaced hand, it was a deliberate wiping of his hand on someone else he felt was of less value. Crass and obvious, done in such a way as to appear to be inadvertent.
Anyone who thinks these people are looking out for you and me should just say NO to drugs.
Your comment did make me wonder what that woman...Ms. Lewinski...is up to these days.
It was Bill Clitton...should have wiped his ass on the guy's shirt.
That is a classic "Texas Air National Guard" moment!
After spending hundreds of $Billions to prop up the housing market 'ol Ben is now bragging about how affordable housing is ??
Plan A "didn't work, on to "Plan B" Another 100 point melt up.
LOL goodluck finding a buyer @ fair value Benny Boy. dumbass.
bernanke is phucking nuts.
the shit is about to hit the fan.
Ben is one of those who directs the phucknut, Tim Geithner. nuff said
Bernanke Wants To Shrink Fed Balance Sheet To $1 Trillion Or Less
Psy Ops to support the dollar while Euro crashes?
It's all psyop
Why would everyone blames Ben when he is doing everything he can to save the American, unfortunately it is just in the expense of other countries. People gotta appreciate how he is attacking Europe Zone and its EU which he try to force the money to flow into US.
Next will be Asia(esp. China), with all those over inflated property prices. Once Yuan appreciate and open its market to the world, the attack will begin.
This is exactly the same of what US did to Asia during the Asia Financial Crisis on 98. By then, the Asian wont even have the money to buy cheap raw materials even if they wanted to.
The stock market is going up like crazy only to serve for 1 purpose, "to attract money to flow into stock mkt from bond and EU."
The money which now spend will be easily recovered if America becomes the only place where people can park its money.
Zimbabwe Ben. Makes my nuggets shrivel.
BTW My 6 y/o just asked me if Barney Frank has teeth.
lol..."yeah, he keeps them in a glass on the nightstand."
http://www.youtube.com/watch?v=0BHsonehpYs
The most shocking comment is when Ron Paul states that the national debt is $6 trillion. Great work tacking on another $7 trillion over the past 8 years. National debt compounding at 9% annually...remain calm, all is well!!!
More empty rhetoric that will continue for the next few years with midly increasing hawkish tones but zero action. Of course when the market collapse we surely will not be able to raise rates then correct? They decided back in March of 09' that Bernanke was onboard to allow the markets one last chance at creating a bubble and that "This time we will get it right"
Surely nothing..and I mean nothing has been learned about fiscal, monetary and risk responsibility from this lesson. The only lesson is we have unmasked who is truly in control of the U.S government.
Is there a link to the interview?
The term excess reserves is used in a context of excess member bank reserves (a liability to the FED) and not a reference to assets held by the FED. Draining excess reserves are the prerogative of the member banks who own the accounts. In addition, as of FY2009, holders of FED reserves are being paid interest by the FED. There are about $1.3T in excess reserves at the moment. Draining these reserves without inflationary tendancies seems almost an impossibility at this time. However, to Ben, normalcy would be zero excess reserves.
Mark Beck
We support a strong dollar policy. nuff said
Yeah, he also said that the subprime crisis was...ummm..."contained".
And overly expansive monetary policies never caused problems. Ever!
Ben will unwind his pile of crap when Goldman tells him to.
And I want to buy a Lambo Reventon this week. Now me and Ben have something in common.
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