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Federal Reserve Balance Sheet Update: Week Of September 8

Tyler Durden's picture




 

It is time for the weekly update of the only financial component that really matters: the composition of the Fed's $2.3 trillion (and rising) balance sheet.

  • Securities
    held outright: $2,047 billion, an increase of $1.8 billion from the week prior.
    • Total Treasury holdings increased
      from $786 billion to 788 billion, as the Fed bought another $1.7  billion in
      USTs as part of QE Lite.
    • MBS holdings were flat at $1.1 trillion.
    • Agency holdings were also flat at $157 billion.
  • Net
    borrowings: unchanged at
    $60 billion from the prior week.
  • Float,
    liquidity
    swaps, Maiden Lane and other assets: $185
    billion, an increase of $1 billion. FX liquidity swaps are at $64 million as the same bank that is experiencing a USD funding crisis continues to have no EURIBOR/LIBOR acces. The "value" of Maiden
    Lane I declined just marginally from the highest since November 2008, and was at $15.97
    billion. Maiden Lane II was at $23 billion, while AIA Aurora was $25.7
    billion. 
  • The monetary base declined by $2 billion and was $1.993 trillion (even as M2 surged in the past week. More on this shortly)
  • Reserve balances with banks: $1.031 trillion, a decline of $3 billion from the prior week.
  • Foreign holdings of USTs and MBS at a new all time high of $3.22 trillion.

 

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Mon, 09/13/2010 - 09:49 | 577623 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

 

Bad Economy Drives Down American Arms Sales By THOM SHANKER

While the United States remained the leading weapon supplier, the value of its arms trade sharply declined in 2009.

Sun, 09/12/2010 - 22:51 | 577630 MarketTruth
MarketTruth's picture

Foreign holdings of USTs and MBS at a new all time high of $3.22 trillion

Wonder how much of that is by the private members/owners of the US Federal Reserve in the CITY OF London, Germany etc?

Mon, 09/13/2010 - 05:47 | 577967 sweet ebony diamond
sweet ebony diamond's picture

Follow-on questions:

Is there a loan contract between the Federal Reserve and Commercial Banks? Does the Federal Reserve account for these loans?

So many questions, so little answers.

 

Sun, 09/12/2010 - 22:53 | 577637 monopoly
monopoly's picture

The insanity just continues on. And the Dow futures are up 65 points. Man this is going to get ugly.

Sun, 09/12/2010 - 23:19 | 577676 Boilermaker
Boilermaker's picture

Take another look.  You're looking at easy triple digits by the bell.

Sun, 09/12/2010 - 23:00 | 577646 AUD
AUD's picture

"Foreign holdings of USTs and MBS at a new all time high of $3.22 trillion."

I believe this is a very serious issue that deserves more attention. It would seem everybody else is going all out to provide the UST market its backstop bid.

And the Fed is promising open ended support for UST's in the form of rolling over the junk already bought.

Crazy.

Mon, 09/13/2010 - 00:16 | 577762 doolittlegeorge
doolittlegeorge's picture

crazy?  sounds like the world get's out national interest just right in my view.

Sun, 09/12/2010 - 23:05 | 577653 unwashedmass
unwashedmass's picture

 

buy gold. buy silver. take delivery. pray.

Sun, 09/12/2010 - 23:54 | 577738 JLee2027
JLee2027's picture

++++++

Mon, 09/13/2010 - 00:17 | 577766 doolittlegeorge
doolittlegeorge's picture

so you're saying prayer makes that market go higher?  i'm confused.

Mon, 09/13/2010 - 00:26 | 577779 CrockettAlmanac.com
CrockettAlmanac.com's picture

Two humans attempt to share concern and express mutual support in difficult times and you just had to butt in? One can be an atheist without also insisting on being a horse's ass.

Mon, 09/13/2010 - 00:30 | 577785 doolittlegeorge
doolittlegeorge's picture

an atheist?  i'd like for you to explain to me how you met God the way I have.

Mon, 09/13/2010 - 00:33 | 577788 CrockettAlmanac.com
CrockettAlmanac.com's picture

I imagine that the Beatitudes come out sounding a whole lot different when you read them.

Mon, 09/13/2010 - 12:00 | 578514 grunion
grunion's picture

Further it would seem you possess all the brain power contained within said horse's arse.

Well, I guess it's a natural occurence. Like mosquitos, annoying insects come with the territory.

Mon, 09/13/2010 - 02:08 | 577852 UncleFurker
UncleFurker's picture

 

Pray? How will that help?

Buy gold. Buy Silver. Take delivery. PREPARE.

 

Mon, 09/13/2010 - 02:23 | 577863 CrockettAlmanac.com
CrockettAlmanac.com's picture

Pray? How will that help?

It helps some people. If you are really looking for an answer to that question and aren't just making waves, then I suggest that you head on down to your local church, temple or mosque and inquire within. They will be happy to help you.

Mon, 09/13/2010 - 08:54 | 578110 Carl Marks
Carl Marks's picture

I went to the mosque. They told me to blow up a temple.

Mon, 09/13/2010 - 11:22 | 578411 CrockettAlmanac.com
CrockettAlmanac.com's picture

I'm quite sure that you have never engaged in a conversation with a Muslim in your entire life.

Mon, 09/13/2010 - 12:04 | 578524 grunion
grunion's picture

It's about spirituality. It's about coming to terms with the fact that you are not God or Allah or whatever.

It's about realizing you are not the all knowing, be all.

It is not about arrogance which abounds and is a keystone in the fragile structure now coming down around the self-anointed.

Mon, 09/13/2010 - 09:09 | 578128 apberusdisvet
apberusdisvet's picture

Silver will drag a kicking and screaming gold to new highs; JPM and the banksters can't control the Asians forever; unbelievable volatility this morning; when it hit 19.98 it immediately got slammed $0.16.  Huge swing in a few minutes.  But, it's coming back.

Sun, 09/12/2010 - 23:06 | 577655 bobert
bobert's picture

That's a lot of assets.

What did they give in exchange for them?

Sun, 09/12/2010 - 23:15 | 577669 MrPalladium
MrPalladium's picture

Newly printed money!!

(Supposedly, the run out from MBS payments, which otherwise would have shrunk the money supply)

Mon, 09/13/2010 - 00:20 | 577769 doolittlegeorge
doolittlegeorge's picture

no, actually.  far less.  a believe it's called "a promise."  would you like me to explain what that promise might contain?  'cause believe me "there be some dark places in this world" as well as "promising things that planet peon would look forward too" as well.

Sun, 09/12/2010 - 23:10 | 577662 AUD
AUD's picture

One thing I have noticed is the balance sheet of the Fed shows very little movement in August-Sept '07 when the 'credit crisis' first began to show.

Whereas the RBA shows a massive drop in foreign exchange reserves (& total liabilities) from this point.

Thoughts anyone?

Mon, 09/13/2010 - 00:21 | 577771 doolittlegeorge
doolittlegeorge's picture

this is interesting.  why not tell us your thoughts on what it means?

Sun, 09/12/2010 - 23:20 | 577679 agrotera
agrotera's picture

By law, federal reserve banks get 6% on 1% of all reserves, and isn't there a new 0.25% bonus on all "excess" reserves?

Looking at the chart one would have to say that it is boomtime bonanza for the cartel (the privately held federal reserve and all it's agents) , between the bailout that they orchestrated which in effect was a heist, and to top it off, they get paid on the heist perpetually!

Even if people can't articulate it, US citizens know they were robbed--when a the government let's this kind of crime pass off as "for the good of the people" it is only a matter of time when our 'currency' will  be seen as corrupt as well.

Sun, 09/12/2010 - 23:24 | 577687 bobert
bobert's picture

Yeah but who's paying who? Is the federal reserve making the interest income or are the banks?

Mon, 09/13/2010 - 00:17 | 577763 CrockettAlmanac.com
CrockettAlmanac.com's picture

See: http://www.federalreserve.gov/monetarypolicy/reqresbalances.htm

I tried to copy and paste but the tables lost their formatting.

Mon, 09/13/2010 - 01:14 | 577824 agrotera
agrotera's picture

Thankx CrokettAlmanac.com--soooo it is worse than i thought:

6% on 1% of the required reserves is less than the current 0.25% on required reserves PLUS 0.25% on the excess....

OUR TAX MONEY IS PAYING THIS CARTEL who have captured out government by turning our elected officials into puppets for their benefit.

The excuse for this massive scheme is that if our government took over operations of the coinage instead of letting the privately owned federal reserve, that it would cost the same--i say "OH REALLY?!!!!" THAT IS A LIE!!!!!!! 

Anyone who is not sure what this is all about, read Creature from Jekyll Island and you can see a recap by the author on youtube if you like...the book was written over 20 years ago, and is a history book on facts about our federal reserve that most people don't know, like the fact that it is a privatley owned company.  The first chapter of the book is called THE BAILOUT...how is that for prophetic.!!!

Mon, 09/13/2010 - 02:25 | 577866 zaknick
zaknick's picture

Here's some more ammo:

 

http://www.scribd.com/full/37179258?access_key=key-1cuxpp2jlyrgxlh33vds

 

History of the Money Changers

Mon, 09/13/2010 - 12:23 | 578570 hbjork1
hbjork1's picture

zacnik,

Thanks for the post.  This should be read by every citizen.

But you have to admit, the Biddles did know how to make money.

http://en.wikipedia.org/wiki/Sydney_Biddle_Barrows

Mon, 09/13/2010 - 05:59 | 577973 bobert
bobert's picture

So.....banks have a "safe" place to deposit and for the time being it only costs them .25%. That's $2.5B in revenue to the federal reserve right? Wow, nice gig for the fed. And the fed gets the interest off their treasury holdings also (although I understand they have to return anything beyond their costs to the US treasury. Kind of like having a lucrative cost plus government contract). So the interst on their investments covers their costs and the bank fees are pure profit?

I think I'll join those who are praying!

Mon, 09/13/2010 - 11:27 | 578421 CrockettAlmanac.com
CrockettAlmanac.com's picture

So.....banks have a "safe" place to deposit and for the time being it only costs them .25%.

No, the banks earn .25% interest on reserves from the Fed. That helps to keep them from lending. It helps sterilize the increase in the monetary base and prevents the fractional reserve system from increasing the money supply available to the public.

Mon, 09/13/2010 - 00:23 | 577774 doolittlegeorge
doolittlegeorge's picture

currency already seen as corrupt.  it's called a "super market."  you buy food and water there and certainly "never pay less."  if you start to ask "what the hell else am i going to have pay for!!" all i have to say is...don't go there, man.  just.....don't go there.

Sun, 09/12/2010 - 23:23 | 577686 Boilermaker
Boilermaker's picture

They are literally going for a triple shock power faudfest now.  All the remaining chips are splashing the pot at this point.

Wow, honest to Christ...what a fucking sham this has truly become.

Futures cruising to an easy triple digit open.  LOL...I've seen it all...or I've seen enough.

Sun, 09/12/2010 - 23:26 | 577689 bobert
bobert's picture

This does not bode well for my bonds I suppose........

Sun, 09/12/2010 - 23:32 | 577699 Boilermaker
Boilermaker's picture

It doesn't bode well for anything except farming.

Sun, 09/12/2010 - 23:41 | 577719 bobert
bobert's picture

LOL...my acorn squash is doing well and so are my mercury dimes.

Mon, 09/13/2010 - 00:25 | 577777 doolittlegeorge
doolittlegeorge's picture

yeah but how's your supply of lead lookin'?  it might be time to "buddy up" if you know what i mean.

Mon, 09/13/2010 - 00:33 | 577787 rocker
rocker's picture

Cut in half, gut the seeds, Brown Sugar sprinkled, baked in the oven always tasted great. Enjoy !!!

Mon, 09/13/2010 - 11:58 | 578509 hbjork1
hbjork1's picture

rocker,

I second that!  That is the recipe my wife uses once or twice a month (when available).  Excellent!  I think she adds a little butter to help the flavor.  

Sun, 09/12/2010 - 23:37 | 577709 deathwing
deathwing's picture

There is a reason that traitors are hung by the neck until dead and it is a higher order fundamental than even the truism "gold=money." We are going to suffer the consequences of failing to live by both of these given facts.

Mon, 09/13/2010 - 00:28 | 577781 doolittlegeorge
doolittlegeorge's picture

like the pic only one observation:  death wings point down, not up.  At least how I think it was a bunch of guys who worked for a thing called the SAS represented it.  I could be mistaken....

Mon, 09/13/2010 - 01:03 | 577816 RockyRacoon
RockyRacoon's picture

Many fools yet to be lured in when they get a whiff of the "recovery".

Ballz to the wallz, boyz.

Mon, 09/13/2010 - 01:47 | 577840 AUD
AUD's picture

The 'recovery' is under way. Just like the money markets 'recovered' from the 2000-2002 fall.

All depends on how you define recovery. Inflating the currency? Deflating the dollar in terms of gold....?

 

Mon, 09/13/2010 - 08:02 | 578041 Fazzie
Fazzie's picture

 Gotta get those retail suckers back. They cant seem to grind past key resistance levels during market hours, so they gap above them with the futures and the bots grind sideways the rest of the day.

  Once the idea that the bottom is in ala Doug Kasshole is sold, then we get the rug pulled out trick.

  Ironically enough, if the repubs win back congress claiming stimulus failed, that will pave the way for QE 2.0 new and improved version.

 

 

Mon, 09/13/2010 - 06:03 | 577974 Shylockracy
Shylockracy's picture

Shylockracy axiom: "let me print fiat-confetti and I will own your body, soul and labour down innumerable generations"

Shylockracy lemma: "trust this crew, regret and rue."

 

Mon, 09/13/2010 - 06:03 | 577975 Sudden Debt
Sudden Debt's picture

Read his:

ECB's Wellink: banks need 100s of blns of capital

http://in.reuters.com/article/idINWEA769820100913

Mon, 09/13/2010 - 07:40 | 578017 Aaron Burr
Aaron Burr's picture

I read Michael Lewis' "Beware of Greeks Bearing Bonds" and what struck me as the gist of Greece's Problems is that they don't trust anyone in their own government or private sector. All human relations are based on trust and I feel after reading data like this that it can't be long before the world begins to wonder if it isn't time to rethink the dollar's role in the scheme of things. Monetary policy has no control over "animal spirits" and we are getting fucking pissed. Raise your hand if you feel Ben has commited a heinous trespass of thy foul orifice! The ruling class's house of cards is soon to tumble and me thinks the likes of the French Revolution are possibly ahead.

Mon, 09/13/2010 - 08:06 | 578043 Fazzie
Fazzie's picture

 Nope,dream on. They will simply print more money. The masses will never revolt against a govt that gives them free money.

 

Mon, 09/13/2010 - 12:14 | 578549 grunion
grunion's picture

The trust that needs to be established should be between the members of the community of the "common man/woman". Screw TPTB, we only have each other.

Mon, 09/13/2010 - 09:19 | 578143 snowball777
snowball777's picture

The slow skittering of sand over an increasingly festering pile of deep doodoo.

Fed -> $4.8B -> Wall St

S&P +7.2

$1.5B per point

C'mon Ben...S&P 2000 is only another $1.5T!

Mon, 09/13/2010 - 11:13 | 578389 Grand Supercycle
Grand Supercycle's picture

Updated DOW weekly chart:

http://stockmarket618.wordpress.com

Tue, 09/28/2010 - 02:51 | 609279 Herry12
Herry12's picture

Thank u, i found this for a long time.
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