A Look At The Federal Reserve's Balance Sheet

Always good to keep things in perspective. The most recent Fed Balance Sheet reading of $2.16 trillion is a doozy and is only getting higher, and a couple hundred bucks away from the highest ever recorded of $2.17 trillion a month ago. This is just the beginning: Bernanke at Co. have committed to monetizing $1.75 trillion of securities this year, of which $1.21 trillion remain to be purchased still. This means that the chart will likely pass the $3 trillion mark at some point over the next 3-6 months. As to the yield on these securities once the total is over $3 trillion, if the current trendline of UST pounding is any indication, look for something north of 5%.

Just as a reminder, the total foreign central bank holdings of Treasuries and Agencies is $2.7 trillion.

Very soon America's largest creditor will be... America.

Source: Federal Reserve H.3 and H.4.1 releases.

Comments

[Anonymous]

Inflation here we come, but I guess the minds that rule the nation are OK with it, lets do away with all sense and continue spending our children's future.

They will never miss it anyways!!!!!

Bunch of clowns

RC