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

Tyler Durden's picture

Now that the Fed is firmly number one in the world in terms of US Treasury holdings (actual marketable paper, not the mythical paper held by various insolvent trusts) with $926 billion in Treasury paper post today's POMO, providing Fed balance sheet updates seems like a moot point. After all, most people by now realize how this will end. And once Trichet starts monetizing debt too (not if but when, which will be followed by Japan, Switzerland, and China), the global Weimer endgame will come quickly. But for now, for the sake of tradition, here is the weekly update of the Fed's most recent balance sheet.

All numbers as of December 1:

  • Securities
    held outright: $2,088 billion, $1 billion more than the week prior.
    • Total

      Treasury holdings increased
      from $901 billion to $917 billion.

    • MBS
      holdings declined from $1.038 trillion to $1.023 trillion. As we expected, the prepay of mortgage paper at the Fed is accelerating. In other words, just based on the QE Lite mandate, the Fed could have bought $15 billion in USTs this week. It is in fact lagging, meaning that the next POMO schedule will likely be around $150 billion for December through January.
    • Agency holdings were flat at $148 billion.
  • Net
    borrowings: flat at
    $49 billion.
  • Float,
    swaps, Maiden Lane and other assets: $194
    billion, flat W/W. FX liquidity swaps were at $60 million as that one bank continues to borrow the same amount for 3 months now. The value of Maiden
    Lane I was at $27.6
    billion. Maiden Lane II was at $16.3 billion, Maiden Lane III at $23.4 billion while AIA Aurora was $26
  • The monetary base was $1.979 trillion.
  • Reserve
    balances with banks: $1,008 billion, a decline of $17 billion from last week, and an incremental source of money for the Primary Dealers to chase risk.
  • Foreign holdings of USTs and MBS at a new all time high of $3.34 trillion, an increase of $15 billion W/W.
  • There was a plunge in Primary discount window borrowings which last weak peaked at $1 billion, the highest since may, plunging to just $40 million. Then again with the Bernanke put, who needs the discount window.

And this is how the Fed stacks up against the rest of the world in terms of Treasury holdings post today's POMO:

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.

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El Hosel's picture

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

           Gee Wally, I thought digital dollars were free? 

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

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.

hamurobby's picture

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


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

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?

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.

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?


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.

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.


flacon's picture

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

jdrose1985's picture

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

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?



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.

WaterWings's picture

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



WaterWings's picture

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

(I love his posts)

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.

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. 

jdrose1985's picture

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.

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.

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.

akak's picture


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

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?

jdrose1985's picture

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

RockyRacoon's picture

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

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

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.

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.


jdrose1985's picture


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

WaterWings's picture

What gives? Sudden askewed profundity?

Poor girl...

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. 

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.



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.

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.
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.

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!

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.

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.

cswake's picture

Speaking of keeping the ponzi going...


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.


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.

LongSoupLine's picture

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

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?

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.

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.