Federal Reserve Balance Sheet Update: Week Of December 1: The Ponzi Must Go On

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Thu, 12/02/2010 - 21:51 | 773935 Xibalba
Thu, 12/02/2010 - 22:04 | 773965 El Hosel
El Hosel's picture

   "how many billions the Fed lost today"...

           Gee Wally, I thought digital dollars were free? 

Fri, 12/03/2010 - 00:18 | 774245 flacon
flacon's picture

Well yes. Well no. Well they are going to be paid back. Well... some time in the future. You see... the future is brighter than today. /s

Thu, 12/02/2010 - 21:57 | 773950 wisefool
wisefool's picture

What color are we going to pick for the next things that should not be comoditized, but end up on central bankers balance sheets anyway because they have PhDs and are good at this stuff?

 

1. Medical Entitlement Tally Sticks.

2. Child Future Work Product Weights and Measures.

3. Green stuff made from a yet untapped type of exponentially growing biomass.

PhDs in economics are too smart to worry about picking out the colour pallet for this chart moving forward, so we all need to help them.

Thu, 12/02/2010 - 22:10 | 773986 hamurobby
hamurobby's picture

3. ...and remember, Tuesday is green day!

 

We were warned that the banks would own everything before it ends.

Thu, 12/02/2010 - 21:58 | 773953 hedgeless_horseman
hedgeless_horseman's picture

And some brownie points to the first reader to calculate the SOMA's DV01 and how many billions the Fed lost today on the move in rates alone.

None.  Hold to maturity. What do I win?

Fri, 12/03/2010 - 03:50 | 774565 hambone
hambone's picture

I'm sorry Hedgeless - You lose (or I don't recognize your sarcasm).

All those held to maturity (on average less than 5yrs) must be rolled over (unless you expect we will actually start taxing ourselves to pay these off...which we haven't done since early 60's) must be rolled over at the higher rate. 

Answer is if we had to roll it all over at 3% = probably about $35B/yr over the past two days.

Thu, 12/02/2010 - 22:05 | 773972 jdrose1985
jdrose1985's picture

Global Weimar endgame huh?

Sounds like you're marching lockstep to Bernank's tune. Basically employed by Bernanke to tell fairy tales...they're going to hand money to you all so you can pay off what you owe free and clear, right?

Sure.

Thu, 12/02/2010 - 23:15 | 774140 akak
akak's picture

I'm still waiting for your first intelligent and meaningful post in this forum.

Something tells me that it is going to be a LONG wait.

Fri, 12/03/2010 - 00:02 | 774219 jdrose1985
jdrose1985's picture

If intelligent means that I think I'm going to become rich by investing in metals or that I believe Bernanke when he said he would be dropping cash from a helicopter, you shouldn't be holding your breath.

 

Fri, 12/03/2010 - 00:19 | 774246 flacon
flacon's picture

OMG! We have a genius. Ok, I have $300,000. What should I do with it? 

Fri, 12/03/2010 - 00:43 | 774280 jdrose1985
jdrose1985's picture

Invest in making yourself useful and needed, stay out of debt.

Fri, 12/03/2010 - 01:39 | 774383 WaterWings
WaterWings's picture

Yes. Conventionally wise.

Good luck beating CPI year after year after year after year after year...

Savers lose in this stage; unless you are saving in metals that are only valued in currencies that change quickly in the long view of human history. Gold and Silver are money. Not mere investments.

How many paper tickets does it cost to buy precious metals these days? Does it take more paper tickets yesterday than it did tomorrow?

Hmm.

Hmmmmmmmmmmm.

Fri, 12/03/2010 - 02:32 | 774476 jdrose1985
jdrose1985's picture

I understand that metals are going up and I understand why. Basically a currency trap. You're speculating that you'll be smart enough to sell when the smart money sells. Otherwise you own a dollar graveyard.

Fri, 12/03/2010 - 03:00 | 774516 WaterWings
WaterWings's picture

The Doelarr. Yes. Like the one Hendrix has been recommending?

J.B.?

...?

Fri, 12/03/2010 - 06:04 | 774647 WaterWings
WaterWings's picture

(wait, what Hendrix was not recommending :-))

(I love his posts)

Fri, 12/03/2010 - 00:23 | 774250 akak
akak's picture

How impressive a joust! 

And with TWO strawmen at the same time!

Truly, you are a man af great sagacity and intellectual prowess.

Thu, 12/02/2010 - 23:27 | 774159 Burnbright
Burnbright's picture

jdrose your comment doesn't make much sense. You think we like the idea of hyperinflation? You must be kidding. If you really think that central banks, the organizations that create money, can't create enough money to cause hyperinflation you are one dumb motherfucker. 

Thu, 12/02/2010 - 23:58 | 774205 jdrose1985
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What's taking them so long to create all this money?

Actually your statement is incorrect. It is the US consumer who manufactures money. Go read the Bretton Woods agreement.

If you think the central bankers are stupid or inept or that the central banks are going to be sending you wheelbarrows of cash to go buy bread and pay off your debts, you may want to rethink that one.

Fri, 12/03/2010 - 00:01 | 774217 akak
akak's picture

If you think the central bankers are stupid or inept or that the central banks are going to be sending you wheelbarrows of cash to go buy bread and pay off your debts, you may want to rethink that one.

Yes, how stupid of us to worry about such an impossible scenario, because of course it has NEVER happened many, many times throughout the glorious history of government-controlled fiat currency!

Your grasp of monetary history leaves MUCH to be desired --- if you have any grasp of it at all.

Fri, 12/03/2010 - 00:04 | 774228 jdrose1985
jdrose1985's picture

It's not government controlled fiat, obviously you were taught how to be stupid and passed with flying colors.

The gov't borrows from the existing money supply, doesn't add to it.

Fri, 12/03/2010 - 00:28 | 774252 akak
akak's picture

-1,000,000,000

The depth of your ignorance, and stupidity, is positively breathtaking.

Fri, 12/03/2010 - 00:34 | 774263 jdrose1985
jdrose1985's picture

you said money is gov't controlled. it's not. the gov't borrows money from the existing money supply. if gov't controlled the money it wouldnt need to borrow money from itself.

Now, please tell me how money is gov't controlled so I can rip to shreds whatever delusions you hold to be truth?

Fri, 12/03/2010 - 01:58 | 774417 jdrose1985
jdrose1985's picture

Give me a break.

That was just a rehash of this book:

http://www.whale.to/b/mullins5.html

Neither address the problem, just the effects.

http://en.wikipedia.org/wiki/William_Paterson_%28banker%29

 

Fri, 12/03/2010 - 00:06 | 774231 jdrose1985
jdrose1985's picture

I never said it has never happened, you can easily scroll through any of my posts here and see that.

Fri, 12/03/2010 - 00:45 | 774281 RockyRacoon
RockyRacoon's picture

...scroll through any of my posts here...

Uh, I think I'll get that root canal I've been putting off.

Fri, 12/03/2010 - 00:57 | 774305 jdrose1985
jdrose1985's picture

well you didn't have to be a smartass, old man.

I bet if you dipped your toothbrush handle in gold it would likely get more use.

Fri, 12/03/2010 - 01:42 | 774391 WaterWings
WaterWings's picture

There is no way you have been this deluded this long. I remember savoring some of your posts. Somehow one of us is incredibly misguided.

Which?

Fri, 12/03/2010 - 02:15 | 774445 jdrose1985
jdrose1985's picture

http://research.stlouisfed.com/fred2/series/TCMDO?soid=1&rid=52

money supply contracting first time since 30's, hyperinflation steadily exported to China since '79, that's why they were opened up.

Fri, 12/03/2010 - 06:01 | 774646 WaterWings
WaterWings's picture

What gives? Sudden askewed profundity?

Poor girl...

Fri, 12/03/2010 - 03:10 | 774527 Burnbright
Burnbright's picture

What's taking them so long to create all this money?

You mean like the 3.3 trillion that the FED disclosed about funding, or how about the 100 billion a month on POMO? That isn't money being created?

Actually your statement is incorrect. It is the US consumer who manufactures money. Go read the Bretton Woods agreement.

The consumer creates DEBT, not money. The banks create CREDIT, central banks create NOTES. So you are wrong. 

If you think the central bankers are stupid or inept or that the central banks are going to be sending you wheelbarrows of cash to go buy bread and pay off your debts, you may want to rethink that one.

I think that Central Bankers are GREEDY, their is a difference. They are inept because they want Power over money and they will continue to print money to try and paper over any problem that would dethrone them from their reigns over the economy. Central bankers will not be sending me wheelbarrows of cash, they will be sending them to their buddies while the average person has to work for every dollar only one day people say "fuck this" and stop accepting dollars because it doesn't hold value and the FED has an open trough to banks. Honestly why does anyone still use dollars after it has been painfully obvious that essentially it is a form of repression. The Fed gets to decide who lives or dies financially, and Bernake is not a benevolent God, the more apparent that becomes to people the more inflation you will see. 

Fri, 12/03/2010 - 11:43 | 775420 Raynja
Raynja's picture

+ 14

Thu, 12/02/2010 - 22:06 | 773974 Oh regional Indian
Oh regional Indian's picture

Wow! Talk about bloat. The FED mirrors Sheeple waistlines, which is somehow fitting.

Seeing graphs like this, all resembling some twisted version of the ones shown in Inconvenient truth, ought to be enough to spill some ketchup on the streets one would think.

ORI

http://aadivaahan.wordpress.com

Thu, 12/02/2010 - 22:10 | 773980 jdrose1985
jdrose1985's picture

dupe

Fri, 12/03/2010 - 00:51 | 774291 RockyRacoon
RockyRacoon's picture

 

You've garnered some junks.  In spite of your proclamation, a few folks must not think you are, a Dupe in fact.


Fri, 12/03/2010 - 02:00 | 774422 jdrose1985
jdrose1985's picture

as in duplicate

Thu, 12/02/2010 - 22:10 | 773987 BW
BW's picture
Since the MBS is fraud, then AIG (Taxpayers) need to get their insurance money back from the banks that were paid out.
Thu, 12/02/2010 - 22:19 | 774000 RobotTrader
RobotTrader's picture

CRB still going up...

Stocks, gold, oil, euro, commodities.

It's all the same "risk trade".   No need to buy anything other than the SPY, because it leads everything.

Thu, 12/02/2010 - 23:42 | 774142 akak
akak's picture

That's exactly right RT ---- it's called "Inflation", a.k.a. currency depreciation, a.k.a. wholesale society-wide theft via official counterfeiting.  And you ain't seen nothin' yet!

Fri, 12/03/2010 - 01:50 | 774403 WaterWings
WaterWings's picture

Like B9K9 pointed out, we have "Winner Syndrome" at hand.

Look at the glory of Robo. Imagine that you had that much confidence to be a longtime contributor of so much brilliance...only to turn to amazingly contrary in sudden fashion. What a waste. We so muched loved his allusions of markets and ladies.

Robo, how do I miss thee.

Thu, 12/02/2010 - 22:29 | 774021 TheGreatPonzi
TheGreatPonzi's picture

Tyler -> Lies are necessary to the survival of the Ponzi. So can we really be sure the statistics released by the FED are trustworthy?

In normal conditions, I would not put them into question.

But there, you have a thousand trillions ponzi scheme ready to fall down each day. When people are desperate, they do desperate things. Including stat manipulations, just like in USSR.

Thu, 12/02/2010 - 22:34 | 774031 cswake
cswake's picture

Speaking of keeping the ponzi going...

http://www.businessweek.com/magazine/content/10_50/b4207035613107.htm

Five GOP leadership aides, speaking anonymously because a decision isn't final, say incoming House Speaker John Boehner has discussed ways to prevent [Ron] Paul from becoming chairman or to keep him on a tight leash if he does.

 

Thu, 12/02/2010 - 22:57 | 774087 pomogranate
pomogranate's picture

I want to see the market continue to scream higher, if for no other reason than to laugh at how much it pisses off all the space monkeys.

Thu, 12/02/2010 - 23:03 | 774109 LongSoupLine
LongSoupLine's picture

seems buying silver and OTM SPY calls is a win-win.

Thu, 12/02/2010 - 23:11 | 774128 Fish Gone Bad
Fish Gone Bad's picture

Who says the party ever has to end?  Extend unemployment to EVERYBODY for the rest of time.  Give all state/federal employees a raise.  Fund everyone's retirement.  Everybody is now considered to be above average and deserving of more than twice what they are getting now.  So what if the deficit grows to a brazillion dollars (1 followed by (the population of Brazil) in zeroes), everyone is special and deserves what they are owed.  The debt will never be repaid, so what does it matter how large the deficit grows?

Thu, 12/02/2010 - 23:28 | 774153 akak
akak's picture

The sad thing is, the majority of Amerikans probably think that such a plan would be eminently practical and just.  And why shouldn't they, when most of their politicians and credentialled academics believe the same?

And here I used to be naive enough to think that people actually stopped believing in Santa Claus as they grew up.

Fri, 12/03/2010 - 00:12 | 774238 jdrose1985
jdrose1985's picture

Yet you bought Benny's lie, sucked it up hook line and sinker. You're still waiting for him to show up in his sleigh, er, helicopter.

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