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First POMO Of The Day Closes, Brings Fed's Treasury Debt Holdings To $999 Billion
Today's first POMO has closed, with Brian Sack buying $7.790 billion of Treasury maturing between 6/30/2016 and 11/30/2017. Among the bonds purchased was $689 million of PK0, auctioned off less than a month ago, meaning the Primary Dealers continue to flip bonds from auction straight back to the Fed, making a few million in the process each and every time. And while not even POMO matters anymore, in a market entirely dominated by Delta, i.e., Goldman (even Joe Kernen earlier announced on live TV that "Goldman can do whatever it wants in the futures market."), trades, and where the cumulative TICK is now progressively negative, the only thing that may be of relevance is when will the Goldman vol traders decide they have had enough and start unwinding the trade on which they are massively profitable at this point. What certainly does matter, is that total US debt is now $999 billion, just $1.3 billion away from a trillion, a level which will be breached, as we expected last week, during today's second afternoon POMO in which the Fed will monetize another $1.5-$2.5 billion in TIPS.
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When does the us finally pay off it's national debt? That's more like 14trillion?
you mean just print the money and hand it to the debt holders, and inflate away our problems? When the FED repeatedly suggests that inflation is what is needed? Brilliant. Now you know the end game, and Bernanke said, "we are not printing money" and whenever a public official makes a direct statement in politics, that person is lying. "I never had sex with that woman", "I am not a crook", "We have complete confidence in our head coach.."
My wife and I were talking how politicians lie and give themselves a pass even when caught.
They usually say they had to change their minds or choices because the situation or facts have changed. Done. Thats how you can say we will not monetize the debt one week and do the opposite the next week.
This is the closest thing to political compunction. Maybe they're special pills they get to qwell the guilt that must come up.
Guilt? HA! There is no guilt. There is only pride in administering "tough love," because as we've all been taught, "They had to do something!"
I see a drinking game somewhere in all of this POMO shit...
I see it too. Watch insane monetizers at work, whenever they pump $1 billion into 100 P/E zombie markets, you must kick a shot of Jack Daniels....by 9 am on any given day youll be alcohol poisoned.
But WHO will the Goldman vol traders unwind TO? Retail? I dont see it happening on zero volume. Isnt this the crux of the entire mess?
Is the entire US markets any different than the Underpants Gnomes business plan?
Step 1- Collect underpants.
Step 2- ??
Step 3- PROFIT!
Thats all we're really looking at, the entire US economy has been print to pump, with 0% interest of course, and while some claim its 'highly profitable' for the manipulators I dont see it myself....who are they going to dump the pump TO?
All that debt, and the dollar is rallying.
Bernanke has the green light to print to infinity, with no consequences whatsoever.
'Dollar rallying' wow all the way up to 80.4 where its been pinned for months.
What is the dollar rallying against? Not real things like oil. How crowded is the LA city bus, robotroll?
"no consequences whatsoever"
time will tell
Not even you could possibly be that myopic
Not only that, but what's the point of having a morning and an afternoon POMO auction? Why don't they just have one daily auction that is LARGER?
So Sack can sell the morning POMO stuff back to the PDs in between at a loss and buy the same stuff back in the afternoon session at another loss.
Sackie has champagne ready to celebrate the 1 trillion mark. Mama must be so proud that little Sackie is creating massive wealth for the nation. Wealth effect, bitchez!
Incredible! The Fed is now the biggest holder of US Debt! Ben really is dangerous!
It will be interesting to see how much China's holdings decrease in the next update from TIC.
More than likely, China, Japan, Taiwan, U.K., etc. will continue to wolf down more Treasuries.
After all, 97% of their purchases the last 25 years are still in a winning position.
'Wolf down more treasuries' lol try to show any proof China is buying any treasuries at all. You cant.
Be patient RabbitTurder! The report hasn't come out yet.
"After all, 97% of their purchases the last 25 years are still in a winning position."
And yeah, that will continue with their future UST purchases because hell, the rally is bound to continue until the entire yield curve collapses into the X-axis.
And today everyone on CNBC will start to wear their...
FED TRILLION POMO HAT
Hurry! Get yours now while supplies last!
I bet there's a huge inventory of those hats like there's huge inventories in everything else.
The inventory is already priced into the market and now is a great time to be a buyer. ;-)
How about a T-Shirt:
"The Fed got $1T in Treasuries and all I got was this lousy 13-week extension of UI benefits!"
SWEEEEEEEEEEEEEEEEEEEEEET! All the party hats I bought with "Give us a Trillion Bananas" written on the front will NOT GO TO WASTE!
Party in my closet....TOMORROW! Bring your own coats to hide under...and you better have wireless 'cause I only have one nonconforming outlet in here.
Rock on criminal syndicate known as Wall Street!
OK save 1 for me I'll be there and I'll bring the dips to counter The Bernank's pumps.
Alright brother Dog!
Listen...do you think that the criminal syndicate known as Wall Street does NOT know that
"we can seeeeeeee uuuuuuuuu"? Seriously. Do any of these guys have an exit plan that includes the idea that they have utterly shattered the credibility of the market...and, oh yeah, currencies too?
Seriously, Dog? I need to know.
Cdad
Yea its my biggest overall question in all this- Who the hell do they think theyre actually fooling? I dont know, everyone I know has stopped trading months ago because even the most diehard % shaver I know with 5 computer screens has concluded you can not survive in it anymore.
So as the article says theyre about to 'take their profits from this highly profitable monetizing fest', my question is 'Who the hell do you think youre going to dump to in an empty market'?
Can ANYONE answer that most important question?
Shite...I thought you could? More coats...must pile on more coats...
If you know the ponzi is going to collapse it does not matter if your paper worth collapses with it. All that matters is that you own most of the valuable real wealth (companies, real estate, commodities).
i remeber when PM's used ot buckle under POMO
now they just go higher regardless, at least with QE2..
curious how it'll go with QE3
the jig is up?
Same shit with the REITs, only more blatant.
Cant have the REIT's going down, FED owns about 1.5 trillion of em and the banks balance sheets only exist due to those R/E 'assets' being pumped or at least stabilized. Ponzimerica.
Roger that, but, one would assume you have to AT LEAST keep SOME reasonable camoflauge on the daily manipulation. It's the same directly upward march daily. Just a constant order fill at higher levels. Every opening sell off is met with huge 'buying interest'.
Seriously, that shit has to stop at some point. How high can they really drive valuations of this garbage?
All I can conclude is they have some horrible event in store for us, thats their 'unwinding' plan when nukes are going off in major US cities or some shit like that.
Honestly, how can they do it when CRE sales are PUBLIC information. Who in the hell even constests that CRE loans are massively upside down? Who is paying a premium for office or retail space?
Man...unreal.
Gotcha gulliver, that's why I love "my" ZH.
I learn something new every day.
Anyone plan on moving out of the us when things get worse? Where would you take your family?
Nah, stayin here come hell or hi water. I dont feel like running from these 3 piece suit criminals, Im not scared of them, just disgusted. I figure I can take at least a few of them out myself.
How does the Federal Reserve exit? I am sincerely perplexed. Let's say the Benank holds to maturity, when the T-Notes mature, how does the U.S. Treasury pay the Fed back, while running unfunded deficts that need to be monetized?
I noticed Japan did and was able to exit half of their Central Bank holdings from 2007 to present? If they were able to do it, why can't we?
Anyone?
They exist because everyone who is anyone gets a kickback benefit. Whole country is just a criminal syndicate. Why does the govt answer to the bankster elite instead of the 'citizens' theyre there to supposedly represent? Banksters pay better, thats all.
However, theres a chance that Ron Paul throws a few speed bumps in front of them soon. We'll see.
I think the question was how does the Fed exit, not exist.
Oh read it again, see you wrote how does the Fed EXIT...I dont see at all how they exit in an empty market. Someone is expected to now buy all the FED's trillions on balance sheet pumped up into the stratosphere?
Could be they know all along theyll never exit, and the plan is simply to bury us in so much debt theres no way out except 1 world govt, 1 world currency. Seems to always come back to that end conclusion.
I don't see it either but the markets are up. Party on.
The way all this debt is piling up in the US and the EU and also considering the size these levels are here to stay, and once there's will be another black swan event we'll start to see default around the clock.
http://www.bloomberg.com/news/2010-12-17/stocks-rising-17-since-bernanke-disclosed-qe2-disarms-fed-s-worst-critics.html
So, another sure thing hits and pays out nothing.
And...Yep, the REITS continue their 45 degree launch into outer space, followed by the financials, naturally.
The IYR just can't be stopped. Just simply cannot be impeded. No way. No How. Irrespective of all else.
Record low real estate sales, housing prices tanking and rates rising. Nobody building.
Cnbs reasoning is that since the overall market is up they're laggards and get pulled up.
A rising tide on FED POMO pumps lifts all turds?
It may, indeed, lift all turds. But they are putting the stinkiest turds into a sling shot. I guess it's a constant warning and punishment to anyone who dares apply fundamentals and short them or buy put options. God forbid...
'Goldman traders about to unwind their highly profitable positions (from the FED pumpfest I guess)'
Unwind to whom exactly? The idea is that someone is out there flush with cash dying to gobble up trillions in pumped up wildly overvalued garbage? Can anyone explain how this happens exactly?
The Squid's Delta desk better start the vol unwind soon if they know what's good for 'em.. with Mike Dell buying more of his company shares, consider the top "ticked". lol Vega bitchez!
Look around you, we are no longer talking about green shoots, solid retail numbers or stability in employemnt and housing. We're talking cuts in pensions, cuts in defense spending, stability in unemployment!
...no-one in Washington, except maybe the White House, actually works on the bigger picture, that's the problem with Democracy; 99% of govt. has it's own tiny corner, work comes in and goes out. That's why, I suppose, the constitution was written to have a 'President' with a lot of power. None of these civil servants have more than an academic interest in the Big picture, Congress and Rep.s are in it, bar a finger's worth of exceptions, for the gravy...it's not whether the administrative arm is willingly 'the worst thing that's happened to a population since liver pate', it's just that sorting it out isn't anyone's business.
Except the President. Who has no 'high finance' tools. Even the BIS is colluding with some dubious FED practices. JPM, who co-own the FED, doesn't look in great shape - so of course, if JPM catches a cold -we all have to wrap up warm; the President cannot solve monetary or Fiscal problems, not ordinarily. Ordinary people cannot 'overthrow' a system of payments, not just like that. Yes, the banks should be reorganized, but who is authorized to say this? -no-one except the majority shareholdings.
The problem is bigger than the banks and the Fed and the Congress and the housing; because that will solve itself. The recession will end in the collapse of, at least, western banking as we know it. Why we will get to that point is because A stands aainst B, B stands against C, etc., drilling down- that's how money works; and the game is always- who has more money. But the problem is different, it is that people are now becoming fully-aware. Congress is about to be raked over hot coals, the banks and inflation, will be no more problem to the American people than loose straw in the wind. Enjoy the weather.
find the moron n this clip...and then marvel at all who dont understand that this nation is fucked....
http://www.cnbc.com/id/15840232/?video=1705025436&play=1
Ye Gods, did I really witness that?!
Kaiser, thanks for posting that, my jaw dropped in several places. I don't think I'll buy his book.
DavidC
The funny part is their take on matters, 'while stocks are at 52 week magical highs, and many stocks at all time highs, whats holding them back'? Huh?
printing $400 a month against one ounce of gold.
Who can say gold is in a bubble.Gold's gains still
slower then printingpress.Golds relative price still
declining.Gold has and will always be in the center
of montairy and financial affairs.Anyone whom will
tell you otherwise is just a fool.Just feel sorry for
the people at the end of the line,changing their life
savings for a few gramms of gold if available.