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This Is Not The Full Listing Of The Fed's Treasury Monetization Actions You Are Looking For
Due to popular demand by current and former Federal Reserve employees who lost track of their employer's actions sometime after the $100 billionth CUSIP was onboarded by the US Taxpayer, below we present a full detail of all the $297 billion in monetiz... pardon, perfectly normal Quantitative Easing actions (and yes, there is a world of difference, just accept it) performed so far by the Federal Reserve.
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Er... Tyler... it's "Credit Easing", not "Quantitative Easing".
Get with the program, dude. :)
PLEASE.... .pdf. Can't open that format here at work.
Go ahead, expose our work.
Who cares, it'll never make it to the major media.
The squid has control of congress and the media.
But not ZeroHedge....yet.
BB
This post needed the following so I will add it:
Mwuhuhuhuhu Ha Ha!
Alan Dulles, the first civilian head of the CIA in the 50's, was being taken to task by a member of the intelligence oversight committee for withholding information from the American public and lying under oath.
The Senator told Dulles that Americans would be outraged when they read about this in the morning paper. Dulles said the following in an open public meeting.
"The American public doesn't read."
This is exactly why the thieving grows worse everyday and why these bastards are increasingly brazen as Rome burns. Why the hell are we screaming and hollering about the thieves when it's the American public who are asleep at the wheel?
When the American public returns to office over 95% of the Senators and Representatives up for re-election 2 months after they passed the 2008 bank bailout bill that the public was opposed to by a margin of least 100 to 1, I have no idea what will wake up the sheeple.
I would love to see the polling numbers on any number of issues to see what exactly the American public thinks it knows about the crisis we are in and who is responsible for same.
I'm sure the numbers exist... but they will be privately commissioned and thus generally unavailable.
Then again maybe it's better that we don't know...
For years I wondered why politicians would continue to poll when it wasn't an election year. Than just before the 2004 election cycle I finally woke up and figured it out.
They are constantly polling for the American citizen bullshit factor. They want to know how much bullshit the average sheeple has swallowed, how well it's being digested and how much more bullshit they're willing to swallow in the next week, month and year.
To answer the last question as to future capacity, I quote the 1950's TV character Ralph Kramden of "The Honeymooners" when he says "To the moon, Alice."
Good insight CD.
Most people would rather live their lives. Eventually they will wake up, but things take awhile to get rolling... And life is still pretty easy. Give it a year or two.
Democracy was thrown away in favor of oligarchy.
The people were too easy to manipulate anyway.
At least now we know who to point the finger at (and line up against the wall, eventually.)
What could be more reassuring than to know that the Fed holds all of these good-as-gold IOU instruments backed by the full faith and credit of itself.
I'm assuming non of you have read Bernanke and Gertler's working paper on financial accelerators in a quantitative business cycle framework? It essentially lays out the framework for exactly what is happening today.
How else do you individuals suggest we increase money velocity in a system where individuals and firms are hording cash and interest rates are at a zero bound (i.e. essentially a liquidity trap)?
I know most of you here are Austrians and believe the Fed somehow causes business cycles, and also believe in some moralistic "we must suffer for our sins" type of world view, but the ironic part is if you ascribe to mandelbrot and taleb you'd have read that Mandelbrot believes that bubbles, due to the fractality of markets, occur naturally simply from human nature.
The problem, in addition to mandlebrot that is, is that the fed chairmen have had their feet on the proverbial accelerator for the last two decades. When you have the fed rate on the floor, and rates are very low, it encourages speculation with borrowed money. This leads to inevitable collapse.
You do realize that Bernanke's decisions prior to the meltdown helped start this whole mess, right?
A big part of this mess was due to him and his predecessor making money too cheap. Their solution to the problem is to make money cheaper than ever before. Yeah, this should end well.
Basically, we let BB dig us into a hole. Then, he explains to us that he knows how to get us out, if we would just hand him that shovel over there.
I do believe the Fed, in part, causes business cycles. If you allowed the free market to dictate interest rates, and also forced the lender to hold the loan and be accountable for it, then you would probably never have a credit crisis of this magnitude again without a huge outside force (such as a major war/catastrophe).
It's the Fed's trickle-down recklessness that directly caused our current state.
The bubbles that occur in a free market are small and localized, not at the national economy scale. Further, in a free market the effects of bubbles are mitigated by natural recessionary market corrections, not exacerbated by idiots who think reflating is the way to reduce a bubble.
Like the long depression right?
The bubbles are a side affect of fractional reserve money systems. You eventually get too many chiefs (M2 M3) and not enough indians. This causes too much investment money which has little on no use or bearing on the real economy. It divorces further and further from the real economy and pops.
To imply that the Fed is trying to save the economy is bullshit. They are trying to save the ultimate Ponzi for the benefit of the real masters of the universe, the global financial elite of the world shadow government.
Anyone who still believes the USG (or any other "country" for that matter) is calling the shots needs to stop drinking the Kool-Aid called "A life time of American nationalism and propaganda swallowed whole from birth."
Tyler, please please understand.
The only reason they bought these funds is to sell them on the open market to raise the rate of interest. The Fed action to "lower" the rate of interest is false, American's were going to cash, lowering the rate that they valued assets anyways. They purchased these funds to "squeeze" the longs and have them fleeing into temporally distort assets with little real value.
Tell these people the truth!
They bought the assets to fund the negative fiscal CF because the market was not deep enough at prevailing rates to absorb it and to give a cheap bid to MBS to give gas to houses. If they had not done it market rates would have skyrocketed choking the US economy and house prices would have crashed futher which they were afraid to let happen. I am all for conspiracy theories, but in this case, Phaesed, your's ain't right. Now that we have a nascent carry trade deveoping in the USD watch them implement QE 2 and its sequels..just a prediction.
Seriously man, Banks are forced to value assets at whatever the prevailing low rate of interest is, as long as they are forced to value the majority of their assets in close to absolute value, they are forced to have higher cash reserves, even if it does free up significant CREDIT reserves.
- Simply put, the banks were FORCED to buy these because people were in cash, which would have sustained the low rate of interest at the valuation that most hurt the bank.
Nobody gets it, when you hold cash, the bank is forced to hold more cash because the probability of you needing that cash increases, thus they are forced to buy more short term treasury bills because of the legal duration requirements of discounting.
So what does the Fed do? Well, first they "lower" the rate of interest.
- Really that is nothing but changing the rate at which Banks are allowed to value illiquid reserves in the present and creates credit in excess of the currency deposit required by law. In a depression, it's YOU the indidivual on the FREE MARKET who actually set the rate. This would have been discovered if it weren't for the Fed make it seem like it was their purchases that would keep it low.
Then they scare with the claim of money printing, which they do NOT do unless congress issues debt. The Fed has never made money, that's why it can exist as a legal institution. It only printed money at the direct request of Congress, i.e. when the US raised debt. What the Fed then did was allow the banks to issue this credit to you.
So now you're afraid of inflation when the real problem is DEFLATION, so you send your funds from your wallet to somewhere else, oil (overseas), equities, corporate debt, gold....
All of this inflation comes because you don't own your DOLLAR.
Dude, anonymous.... my conspiracy is the one that's really happening... the one where the Fed is lying to you about wanting a stronger dollar, but where you are the one who makes it weak.
The reason this crash happened was that we were almost past the 50% mark in national debt ownership. The 2001 crash was happening because of this as well.
YOU ARE BEING LIED TO BY EVERY INVESTMENT ADVISOR IN THE WORLD WHO SAYS TREASURIES ARE IN A BUBBLE.
They want a weak dollar, that is what raises the price of equities.... the leverage in your dollar.
Why do people not want to own their own debt? If American's funded our debt then it would be to AMERICANS congress answers, not corporations.
Damnit man, I'm the one who found the actual issues they were purchasing and brought it to ZH attention after Martensen's article, does anyone really doubt where my allegiance lay???
When the Fed buys crap assets or accepts them as collateral for loans that will be rolled over until eternity, for all intents, they ARE printing money.
NO! This money is never printed!
This is just purely credit, it is booked on a ledger, but never printed. They never think you are going to hold your money. They think that you will always lend it out and will never ever need it all.
Don't you understand why banks can even have banking panics? Because they *NEVER* have enough cash.
Don't you understand why they make sure that they never print the same number of dollars as debt issued by the Government?
The point is to keep you poor! We pay more in taxes than we have in physical currency! IT'S A SCAM.
Read Williams Jevons, Irving Fisher, Keynes, Hicks (of the Hicksian IS-LM model of a liquidity trap).... READ THESE PEOPLE. UNDERSTAND YOUR MONEY IS REALLY THE DEBT OF THE FEDERAL RESERVE, understand that it was ONLY BECAUSE THE GOVERNMENT ISSUED DEBT TO THE FED THAT THEY CAN ISSUE DEBT.... THEY NEVER PRINT MONEY UNLESS IT IS PASSED INTO LAW. IF WE ALLOW THEM TO RAISE THE DEBT CAP WE WILL *NEVER* OWN OUR COUNTRY
You people have to understand this, you have to debate this, you have to hold your cash in CASH.
IF THE MULTIPLIER GOES TO 1, THE CENTRAL BANK WILL BE IN DEFAULT.
Dude,
Most ZH readers understand the Fed doesn't "print" money but rather extends credit via electronic journal entry. Most readers understand how the modern fractional reserve system works.
They use the term "print" as an easily understood metaphor to depict an out of control Fed "printing" up dollars to swap for shit collateral. Most readers understand that the "cash" dollar bill in your wallet is simply the physical representation of the Fed's activities.
When the shit hits the fan, I don't care if you have physical cash or a journal entry in your bank account, it will still be worthless.
There are a lot of us out here who are starving the beast. We buy nothing we don't absolutely need, hold cash and gold. When you hold gold, the velocity of the money stops there (unless you lend it out or some such). Your theory is interesting, but frankly, not needed in your pitch to get what you want. You instead say stuff like:
Starve the beast, pull out of all markets and the banking business, in all forms. Go the next step (I haven't done this yet, I don't have the courage), lose the job, stop paying taxes, work under the table.
One could say one more thing much more directly, but apparently it is illegal to do so. When they have enough power to make it against the law to say a set of words, well, that really tells the whole story.
Meanwhile, my narrative, or yours, same result.
Phased 2.
Brush up on your bank accounting principles..because they are not required to carry assets at their "absolute value"..if you mean by that their market value. I know the Fed does not want a strong dollar and I know investment advisors are mostly numbnuts who lie so we can dispense with those items. The Fed lowered the short rate of interest, inter alia, to allow the banks a risk free net interest spread in Treasuries so as to help the banks rebuild a bit of badly needed capital as they did in the early 1990s and create a ready market for Tpaper which does not have enough natural buyers at the present funding/refunding levels. Oh, as far as the Fed not being able to create money without the Treasury buying it, please, wise up...do you think the Fed has to beg the Treasury to ask them to create this money..they are, in practice, the left and right hands of the same sick monkey..overdoing debt and credit creation in a desperate, but ill-fated/doomed, effort to rekindle a credit bubble in a debt-soaked consumer driven economy. The price of equities has now topped out with this particular gambit and cannot go further without real economic growth which we will not get. And, finally, Congress is bought and paid for by the people who pay the lobbyists....and every now and then we have a transformational election to get some new easy meat for the lobbyists. The US has pushed a losing, debt driven formula until is has broken. The only hope we have is if a new president were able to understand the macro economics and also be willing/capable of the necessary turnaround measures which is severe contraction, debt reduction and radically smaller government...it does not look like the present joker is up to that and we probably don't have enough time left to hope the next one will be..so we are a formerly glorious formula one race car headed for an immovable brick wall at 220 mph...we will not be saved.
Man, believe me I know my accounting principles.
All corporations have a zero balance asset sheet.
The Fed is a corporation.
The UNITED STATES is as well, their asset is your debt (i.e. taxes)
SO IF YOU HOLD YOUR MONEY, THE FED MUST HAVE ALL POSSIBLE RESERVES ONHAND.
IF THEY DO NOT, THEY ARE IN DEFAULT AND LEGALLY BANKRUPT.
Phaesed, with all due respect for your passion, you are mixing accounting principles and economic principles...banks do not have to carry their assets at market value or whatever similar term you used. I suppose what you are trying to say is US citizens should just convert all their assets into cash and CDs and our problem would go away...sort of like in WWII when the solution to the U-boat problem offered by some smartass was to heat up the oceans to boiling..correct in the abstract, perhaps. but not practical. Better to deal plausible realities.
Right... So if a larger number of americans moved to cash at the same time.... (kinda like a market crash), what would happen??
Seriously, it's a plausible reality if enough people understand the reality? Who could lead this? Zero Hedge.... seriously man, we don't even need to be purely in cash. All Americans have to do is buy their own Treasury debt..... If we own over 50% and are able to collect greater than 50% of the income from this debt, the debt would automatically begin to pay itself down.....
Do the math, it's a possibility, even if it is an improbability! If you can figure this out SPREAD THE WORD! I need the crazy intelligent people at ZH to understand what I am shouting!
Everyone needs to understand the "Ex-Ante Theory of Money"
But the best place you can start is to understand the IS-LM model and the single improbability that would cause it to back down.
Read about Walras and the PostKeynesian and Loussanne schools of economic theory....
I suspect you will see your wish, at least in terms of "Americans" owning more Tdebt come true in due time...first, for lack of real buyers and as QE begins to scare them more and more, they cram the Tdebt down the banks throats...then next they will take over the private pension assets (easy to justify with PBGF in place) and convert them to Tbonds...as Mohammed Ali would say, the onliest problem with that is they will not reduce or control spending so they will waste these useful parts of the ultimate solution..I predict we will also see the day in this first OB administration where the military will be shrunk by 50% or more as a good will hail mary and cash saving ploy (probably not a bad idea)...all great movements much have a transformational leader...Godbless ZH, but it is not in a position to be one and one person we have who could do it is a know nothing with no clothes...we be's doomed...
Yes, but right now it's a debit to us and to the US Treasury.
The point is that the Treasury should issue it's debt to the people, not a bank.
Also, if we own greater than 50% of the debt and receive more than 50% of the dividends... It will automatically begin winding down the debt at an exponential pace, because the taxes on the dividends will pay down the debt even if you don't reinvest it in... if you did this it would deplete the debt at a crazy rate....
More people need to understand this and money. I'll write the article on money for ZH this weekend and actually break down the valuation metrics and show people WHY this works, but we, as a nation, need to MAKE this work.
Knock yourself out on that paper my well-meaning but, methinks, overly theoretical friend...while you are at it, factor in the most likely actions of the biggest spending machine the world has ever known..US politicians..
Yes, I know, it's an impossible theory because it hopes that mankind can save itself and that Americans can be the first to do it.
The reason people call Japan a liquidity trap is because prices aren't rising over there....
But what was their unemployment rate before this most recent crash?
Were they in a depression?
Have they really lost 10 years?
Why does our dollar have to be weak to compete? It didn't need to be in the early and mid 1900s, back then we made stuff that was BETTER, not the same piece of shit any unskilled labourer can make.
I am factoring in our politicians, but damnit, if I know and you know.... who else can know and figure it out.... I *KNOW* there is a group out there that does...
THE ONLY WAY ANY AMERICAN REVOLUTION CAN WORK IS IF WE BUY OUR COUNTRY BACK
Yes, this certainly sounds like an important iss.....
LOOK! American Idol's on!!!
But seriously, thanks for the reading recommendations phaesed. Will do more research this weekend.
Hehehe, I wouldn't expect less from a Benthamite....
After all, part of what we were going through is what he proposed!
Damnit, gotta go, camera's watching me!
Because you gotta have fiat...er, faith!
QE 2 .. I thought that was a ship?
Oh! Just like Titanic!
Let's just keep printing money to pay off our debt. I'm sure nobody will ever stop accepting Federal Reserve Notes, especially since they are mandated to do so by those in power. What could possibly go wrong?
There is a good article in the Wall Street Journal http://online.wsj.com/article/SB10001424052748704107204574469073847604010.html?mod=googlenews_wsj that gives historical reasons why this quantitative easing might lead to our undoing.
I <3 the FED. They make stock market go up....... we both lol @ you all
It's monetize or American sovereign default. Peace with financial Darwinism (genetic connections), or kill the creditors (and the dollar). Those are the choices. Shall we take a vote? Of course not, because it doesn't matter -- this planet/realm/dimension will remain a kleptocratic snake infested garden as long as the apple's poison procures moral judgement. The desired result has already been "pre-cogged" by the demagogue-god-dudes.
Why don't we do a leveraged buy out of our own government?
If you mean "we" as shareholders of GS, JPM, GE, RTN, BAE, XO, COP, etc., then we already have.
So stop buying them, they can issue more currency (i mean shares), the US cannot issue more debt until they vote on it.... This means the Fed can't print more of their paper notes and hand that to us instead.
Why don't we buy the government itself??? Until we become our own largest creditor, we will be subject to whom ever credits those who lead us.
By the people, for the people
Until that happens we're fucked! Don't you guys see??? Look at the percentage of public debt vs private debt and look for when the public debt starts to exceed private in ratio terms!
A crash and/or a bailout emerges shortly!
Ph..d,
Private Debt is black hole into which Public Debt is destined to be sucked ... The giant Oreck
In Torah times, debts were forgiven every seven years. We, however, live in usurious times, where debts are never forgiven.
Mark 10:25
Yep and every 50 years all would be purged.
People, you need to understand this, if we fuck it up this time, there is no second chance... we've already used them all, this is our last chance...
Right!
So if we own our OWN public debt and then force congress to renig on their promises that were illegal.
Debt holders rule whomever's debt they hold in the corporate world.
We know this isn't any different in our country, businesses buy America's debt and we buy the debt of the business.
A corporation can dilute their stock, but it is the debt holders who must agree to any watering down or any equity swap. WE should be those debt holders, not those who control the prices which we pay.
+1
I wish Ben would re-read Jefferson ... from 1802 ...
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
Oh, sorry, Ben = Bank spoken of by Jefferson!
phased, sounds like you can see the matrix, please do spell it out in simplest terms in a post, knowledge is power... thanks!
Any comments on why the Cleveland FED seems to show they have already bought more that 300 billion?
According to this - http://www.clevelandfed.org/research/data/credit_easing/index.cfm# (click "data"), they have purchased 302,631,000,000.