Fed Treasury Holdings Pass $1.5 Trillion

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Fri, 05/20/2011 - 14:59 | 1296398 Hard1
Hard1's picture

Exponential bitchez!!

Fri, 05/20/2011 - 15:00 | 1296417 Herd Redirectio...
Herd Redirection Committee's picture

Left hand of government, meet your new best friend, the right hand of government.  Why is the right hand severed at the shoulder, and in the hands of an international banking cartel, I cannot say definitively!

But I can say, check out the latest from the Capital Research Institute "United States of Corruption & Injustice"

http://www.capitalresearchinstitute.org

America isn’t the only country with serious problems, but the US dollar is still the world’s reserve currency (for now), so what happens in America invariably impacts the entire world.  As such, its problems are typical of those found across the entire world.  Problems such as:

  • Incredible disparity in income and wealth between the poorest and richest members of society.
  • Unbelievable levels of injustice, with two sets of rules.  The one you get depends on how expensive your team of lawyers is.
  • Large amounts of financial fraud, following the death of free markets
  • Government in devote service to ‘special interests’, AKA Corporatism, instead of the people

 The nation has completely lost sight of its founding ideals...

Fri, 05/20/2011 - 14:58 | 1296406 tired1
tired1's picture

I've asked before on other posts and I asking again. What is the end game? How does the Beast intend to extricate itself? Is history going to rhyme?

Fri, 05/20/2011 - 14:59 | 1296409 spartan117
spartan117's picture

war

Fri, 05/20/2011 - 15:03 | 1296415 Gene Parmesan
Gene Parmesan's picture

more?

Fri, 05/20/2011 - 15:07 | 1296448 spartan117
spartan117's picture

A lot more.

Fri, 05/20/2011 - 15:13 | 1296475 Gene Parmesan
Gene Parmesan's picture

You were supposed to write "Sure."

 

Rhyme fail.

Fri, 05/20/2011 - 15:15 | 1296483 spartan117
spartan117's picture

How about, "four"?

Fri, 05/20/2011 - 15:19 | 1296485 Gene Parmesan
Gene Parmesan's picture

Sure.

Fri, 05/20/2011 - 15:14 | 1296477 MyKillK
MyKillK's picture

Retired General Wesley Clark said that within weeks after 9/11, the gameplan was to take out 7 countries in 5 years.

 

http://www.youtube.com/watch?v=SXS3vW47mOE

Fri, 05/20/2011 - 15:17 | 1296486 spartan117
spartan117's picture

Iraq, Afghanistan, Libya, Pakistan...

Who's next?  Iran?  Syria?  Who's the seventh? 

Fri, 05/20/2011 - 15:22 | 1296491 MyKillK
MyKillK's picture

Pakistan wasn't on the list (at the time)

 

It was Iraq, Syria, Lebanon, Libya, Somalia, Sudan, and then Iran.

Fri, 05/20/2011 - 15:24 | 1296501 tickhound
tickhound's picture

Venezuela, Yemen and anyone else who doesn't play Monopoly.

Fri, 05/20/2011 - 15:24 | 1296503 tired1
tired1's picture

War with China could reduce US Treasury debt, the Fed could just create some more to fill in the void.

Fri, 05/20/2011 - 18:47 | 1296934 Captain Planet
Captain Planet's picture

didn't you catch the haarp attack on the foxconn factory?

Fri, 05/20/2011 - 15:18 | 1296490 Gene Parmesan
Gene Parmesan's picture

Surprising that the General hasn't had any boating accidents yet.

Fri, 05/20/2011 - 15:26 | 1296510 NOTW777
NOTW777's picture

unnecessary - no one listens to him. even bill fired him

Fri, 05/20/2011 - 15:08 | 1296441 MyKillK
MyKillK's picture

The end game is a new reserve currency being created and the US economy dying a slow painful death.

Fri, 05/20/2011 - 15:11 | 1296454 LawsofPhysics
LawsofPhysics's picture

...and slowly becomes just another third world country.  So get yours while you can because "on a long enough timeline the survival rate for everyone drops to zero".

Sun, 07/17/2011 - 08:22 | 1463359 Freewheelin Franklin
Freewheelin Franklin's picture

"The end game is a new reserve currency being created and the US economy dying a slow painful death."

 

^^This^^

Fri, 05/20/2011 - 15:34 | 1296533 FLETCH
FLETCH's picture

Simple:  anyone who owns paper is going to get paid back 10 cents (max) on the dollar. 

Doesn't matter what type, all paper assets are ultimately a claim on someone else's future output.

We have a bubble in claims on a shrinking amount of real human output.  We can play games with the financial (accounting) system for a while, but at some point the work output needs to pay the creditors.  

 

The current "paper era" will end in tears..  then we'll get back to doing real work and wondering what the hell we were thinking....

 

Fri, 05/20/2011 - 15:35 | 1296534 FLETCH
FLETCH's picture

Simple:  anyone who owns paper is going to get paid back 10 cents (max) on the dollar. 

Doesn't matter what type, all paper assets are ultimately a claim on someone else's future output.

We have a bubble in claims on a shrinking amount of real human output.  We can play games with the financial (accounting) system for a while, but at some point the work output needs to pay the creditors.  

 

The current "paper era" will end in tears..  then we'll get back to doing real work and wondering what the hell we were thinking....

 

Fri, 05/20/2011 - 15:36 | 1296536 FLETCH
FLETCH's picture

Simple:  anyone who owns paper is going to get paid back 10 cents (max) on the dollar. 

Doesn't matter what type, all paper assets are ultimately a claim on someone else's future output.

We have a bubble in claims on a shrinking amount of real human output.  We can play games with the financial (accounting) system for a while, but at some point the work output needs to pay the creditors.  

The current "paper era" will end in tears..  then we'll get back to doing real work and wondering what the hell we were thinking....

Sat, 05/21/2011 - 10:08 | 1298027 CH1
CH1's picture

There are two choices for the end game: 

1. Denial. They will ride it out to the bitter end, al la the Western Roman Empire.

2. Global government. Let the thing crash, then REALLY whip up the publicity machine and ride in with the new "man with a plan" to erase the fractuous foolishnesses of the past and bring in a modern, technological, efficient super-state. Throw in a new currency and a base level of welfare for everyone.

Actually, the 'plan' is probably 1 + 2.

Fri, 05/20/2011 - 14:59 | 1296408 HamyWanger
HamyWanger's picture

The Honorable Dr. Ben S. Bernanke has made an incredible job so far, in financing a gargantuan government deficit with printed money leveraged x10 by the PDs without producing a single % of consumer inflation. 

Fri, 05/20/2011 - 15:04 | 1296434 LawsofPhysics
LawsofPhysics's picture

or a single % of real added value.  Can price discovery be ignored forever?  Stay tuned.

Fri, 05/20/2011 - 15:06 | 1296444 XenoFrog
XenoFrog's picture

Don't Feed the Trolls

Fri, 05/20/2011 - 15:13 | 1296459 LawsofPhysics
LawsofPhysics's picture

Ah come on, entertainment purposes only, I promise.  Even a train chimp won't dance if you don't feed him from time to time.

Fri, 05/20/2011 - 15:24 | 1296500 sabra1
sabra1's picture

ask the minkey, he's the businessman!

Fri, 05/20/2011 - 15:13 | 1296461 monkeys.pick.bottoms
monkeys.pick.bottoms's picture

I am pretty certain Mr. HamyWanger is just pulling our leg with all these comments:D

Fri, 05/20/2011 - 18:50 | 1296937 Captain Planet
Captain Planet's picture

del

Fri, 05/20/2011 - 15:20 | 1296487 faustian bargain
faustian bargain's picture

On a long enough timeline, the number of ZH posters who know HamyWanger is a parody of a troll drops to zero.

Fri, 05/20/2011 - 15:52 | 1296587 schizo321437
schizo321437's picture

HammyWrangler

Fri, 05/20/2011 - 15:58 | 1296598 aheady
aheady's picture

lol

 

Fri, 05/20/2011 - 18:52 | 1296939 Captain Planet
Captain Planet's picture

When did HarryWags kill himself?

I guess the real answer is many times over

Fri, 05/20/2011 - 15:03 | 1296414 spartan117
spartan117's picture

Treasury Debt, the real bubble.

Fri, 05/20/2011 - 20:08 | 1297058 Keri at Bankste...
Keri at Bankster Report's picture

And why can't people see this?  It is so apparent.

Sat, 05/21/2011 - 11:24 | 1298151 CH1
CH1's picture

They don't want to see it. That would require them to make a choice: Either to be a coward or a hero. They flee such choices.

Fri, 05/20/2011 - 15:13 | 1296419 plocequ1
plocequ1's picture

Gold is up, DXY is up, Stocks are down, oil is up... On a technical analysis, It looks like one big lump of shit

Fri, 05/20/2011 - 15:00 | 1296420 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Boy oh boy, the FED must be one of the wealthy institutions on the planet... they even lend money to governments! Anyone know where they got their wealth from? Did they make a genius product/invention in the past which revolutionized the world and made them hugely wealthly that they could lend money to governments and buy debt from countries as big as the USA... Boy oh boy, they must have gold and silver by the truck load down there at the FED.

Fri, 05/20/2011 - 15:06 | 1296442 LawsofPhysics
LawsofPhysics's picture

Even the Fed won't fight the Fed.  What happens if the Fed defaults? 

Fri, 05/20/2011 - 15:24 | 1296511 sabra1
sabra1's picture

you're forgeting pensions, ss, 401ks. it's all your money (i'm canadian) and you let them take it without a fight? did i subscribe to CNN for naught?

Fri, 05/20/2011 - 18:54 | 1296942 Captain Planet
Captain Planet's picture

+1

CNN is great for the obscene

Mom botoxing 8 year old girl?

Our society fell apart a long ago, and CNN is the freak show

Fri, 05/20/2011 - 15:07 | 1296435 MyKillK
MyKillK's picture

How much longer before the Fed holds more treasuries than the rest of the world combined?

Fri, 05/20/2011 - 15:09 | 1296456 tickhound
tickhound's picture

We'll be hitting the nitrous button soon and blowing the competition away... A 1st place finish to make us all proud.

Fri, 05/20/2011 - 15:05 | 1296438 Binko
Binko's picture

I have a very simple question. If the Federal Reserve is buying US Treasurys, what are they buying them WITH? I assume they are buying them with borrowed money. But who do they borrow from? Member banks? And do these banks then borrow from the Feds in order to lend to the Feds? 

Funds are created out of thin air at some point. But how does it all get recorded on the books?

Looking at the process from the outside it looks as if Vinnie and Charlie are both broke, so they get together and agree to lend each other $1000 bucks and then go off happy because now they both are flush. 

Fri, 05/20/2011 - 15:19 | 1296488 HamyWanger
HamyWanger's picture

The money is created ex nihilo since the start. The FED buys back USTs from the primary dealers at a privileged price in fresh cash money. 

If you believe USTs have the intrinsic value at which the FED buys them back (i.e. if you're a Keynesian liberal like me), then no money is really printed. But for redneck libertarians, USTs have a real value close to zero, so it's like money has been printed out of thin air. 

Fri, 05/20/2011 - 16:25 | 1296665 akak
akak's picture

You should have chosen the handle "HamishWanger", and then you could have delivered all your mock posts in Scots, and had us all REALLY confused!

Sun, 05/22/2011 - 14:25 | 1300227 OccamsNationalRazor
OccamsNationalRazor's picture

then Rutledge would've had to shoot him.

Fri, 05/20/2011 - 16:39 | 1296706 css1971
css1971's picture

Keynsian Liberals don't believe in Intrinsic value. You have just outed yourself as a closet Austrian.

 

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