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POMO Schedule Announced: $105 Billion In 18 Monetizations Through December 9
The Fed's marching orders to the Primary Dealers are now public: $105 billion in 18 nearly daily operations over the next month. Let the Fed frontrunning begin. Also, still wondering why the 30 Year turned around today: the Fed will buy back today's 30 Year issue (and others) next Friday, and of course someone just got wind of this ahead of the POMO announcement. Lastly, as the Fed no longer wants to be seen as gaming the "Tendered to Submitted" ratio, Brian Sack is actually releasing how much of any given bucket he will buy back, so to telegraph absolutely everything about his Dow 36,000 intentions. And just in case one POMO a day is not sufficient, on November 29,
the Fed will hold two. The second one is footnoted as follows: "This operation is tentatively scheduled to begin around 1:15 PM and close at 2:00 PM." Whatever you do, don't be short on November 29. Which of course means, be short, as nobody will be short.
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Oil north of $100 by December when the second "airplane" lands at LAX ...
It's all good guys .. I just paid my Amex with my Visa, my Visa with my Discover, my Discover with my Mastercard, and my Mastercard with my Diner's Club ...
Everyone to the bar ... drinks are on me!
My how quickly they forget ICBM launches...go ahead Ben keep printing the dollar to oblivion.
going to be one great G20 gangbang!
"In his press conference on Monday, President Obama responded to critics of the Federal Reserve’s decision to start a new round of quantitative easing – a fancy term for printing money out of thin air. He claimed this move would drive up U.S. growth rates. He also warned that “the worst thing that could happen to the world economy, not just ours but the entire world’s economy is if we end up being stuck with no growth or very limited growth.”
The latter is certainly true. It would be a global disaster if the U.S. economy remained permanently stuck in the mud. But the same cannot be said of his claim that the Fed’s experiment in pump priming would automatically lead to increased economic growth. By the time this experiment is over, QE will make us queasy.
Will driving the dollar down in this way do anything to boost U.S. exports? The short answer is not really. A weaker dollar will temporarily boost exports by making our goods cheaper to sell; but inevitably other countries will respond in kind, triggering the kind of currency wars economists are warning us about. It’s precisely to prevent this scenario that World Bank President Robert Zoellick recently came out in favor of some new type of gold standard or “international reference point.”
Will QE2 then at least boost domestic investment? No, again. As I explained in my speech in Phoenix, the reason banks aren’t lending and businesses aren’t investing isn’t because of insufficient access to credit. There’s plenty of money around, it’s just that no one’s willing to spend it. Big businesses especially have been hoarding cash. They’re not expanding or adding to their workforce because there’s just too much uncertainty created by a lot of big government experiments that aren’t working. It’s the President’s own policies that are creating this uncertainty.
The President is an educated man. I would hope that he knows these things as well as you and I do. So why then, if he knows it won’t really boost our exports or our domestic investments, would he still come out in defense of this dangerous experiment? I think the most plausible answer has to do with the debt. As liberal economist Paul Krugman has explained, a little inflation goes a long way towards driving down the value of the enormous national debt Obama has run up. And the higher the inflation, the greater the likelihood he won’t have to take any of the tough decisions needed to bring the deficit back down. In other words, pushing inflation upwards means you can have your cake and eat it too. You can spend all you like and then make the bill disappear by driving down the value of the dollar – buying with one hand the debt your reckless spending is issuing with the other. No need to cut spending, folks, just run the printing presses. It’s a win-win scenario.
Or maybe not. Because I fear there will be plenty of losers if this really happens, not least the millions of Americans who’ll see the value of their incomes and savings eroded. As the chair of the President’s own Debt Reduction Task Force, former CBO director Alice Rivlin explained, this sort of policy is no good. Sooner or later – probably sooner rather than later – it will come back to bite us in the behind. Rivlin warned: “As our debt mounts, the risk grows that our creditors, especially foreign creditors who own half our debt, will lose confidence in our ability to get our house in order and will demand dramatically higher interest rates.” Obviously, that’s even more likely to happen when they figure out that the Fed is deliberately driving down the value of the dollars they already hold. When they do lose confidence, Rivlin explained, that will spell disaster for our economy, “derailing the economic recovery and ballooning the cost of servicing the federal debt.”
If the President was serious about getting the economy moving again, he’d stop supporting the Fed’s dangerous experiments with our currency and focus instead on what actually works: reducing government spending and boosting business investment through good old fashioned supply side reforms (cutting taxes and reducing overly burdensome regulations). Simply running the printing presses in order to avoid paying off your debts is no way for a great nation to behave."
Sarah Palin
Wonder if Sarah likes getting fisted ... pretty obvious from this piece she is used to a hand up the ass ...
Shazzzzzzzzam !*!@#!!!!!
Junk the truth ...
Off-script she'd probably say a POMO is what she used in high school during football games.
If you libbies were on Obama like you were Palin back in 2008, Billary would be in office right now.
So cool how she needs no ghostwriter or "brain trust."
I would love for someone to ask Sarah Palin in an unscripted moment, on TV, to give even a layman's explanation of what the Fed is.
"The Fed? Waal, that's fer me to know and you to find out now, you betcha!"
Ask the President without his teleprompter present or Axelrods hand up his ass.
I think you'd get more of a laugh watching Barack trying to justify Ben's printing habits.
So we have to grow forever or die? How can we grow forever? You can print dollars but you can't print arable land, or clean water, or 5 billion humans evaporated, or anything else except money.
Oh I get it. We're already into the 2012 US election cycle. Never mind.
+2012
"Destination: The Stars"
start with Mars by 2024
The only limitation on the hand of mankind is its imagination
All of our current problems stem from those who will not let go of their decaying corrupt system, and are intent on dragging us all down into the pit with them.
That's called Mugabenomics ain't it?
Except he didn't.
Actual phrase from the Zoellick FT op-ed, gold standardish sounding, of course the very next day he denied that's what he was recommending.
Heating Oil will be $5.00 a gallon, not to mention what basic food will cost. Sad day.
Bernankie is only concerned with Bank profits and not the American Citizens. As if they were not having enough trouble coping as it is.
This is a very sad day for the poor people of the world
+++++
indeed it is
I agree also, but they aren't lying down. Here in FL crime is escalating. Coming soon to a town near you.
Fact. Trickle-down economics always was a veiled allusion to rampant crime.
as well as fixed income folks who busted their ass all their life to live a modest retirement. FU Bernanke!
Well then if they were so great at busting their asses then they won't mind busting their asses again until they are finally and fully dead.
This is America. Land of opportunity.
Racer: "This is a very sad day for the poor people of the world."
Post of the day.
anyone have any idea why November 29th has two pomo's scheduled?
Maybe it's a two-fer experiment for QE3 scheduling committee?
Cause of thanksgiving, would be my guess.
That was a typo. It's really a reverse repo on a pomo day. I warned about this in previous posts.
Now we just have to learn to do the BennieShuffle.
Protect yourself now. Let the idiots bid up stocks, I'll never touch any of that imaginary BS again.
Duuude! Pick a PM miner, any one.
Chart: ES
Channel.
http://99ercharts.blogspot.com/2010/11/es_5533.html
http://www.zerohedge.com/forum/99er-charts
Hey what do you know Markets retaking gains and silver and gold tamed. The exact purpose of yesterday selloff. Sickening
That's why I didn't sell.
POMO schedule is Fed's attempt to recreate the syringe in Uma Thurmon's chest from Pulp Fiction, but for every American to enjoy personally.
POMO is for HOMO's... It's all going to crash and burn someday...
Double POMO buy on the 29th a hedge against bad Black Friday sales?
Ben's message to the bears, "Don't mess with the bull or you'll get the horns."
eew, that'll leave a mark
$100B won't buy 30pc of AAPL
Gonna start off with a bang, too. On the first full week, they are pumping up to $34.5B into the hole. Each and every day of that week. They must have figured out the market doesn't like non-POMO days.
Golly, wonder what would happen when QE2 stopped? Oh, maybe that's why QE will never stop (at least not of Ben's own accord)...it can't stop as you force asset prices up while simultaneously degrading the earnings of said companies. Delta can only be made up by ever greater QE.
Yeah, I get it now and it all makes sense.
QE stops when the next ICBM launch in LA Bay is directed inland instead out into open water.
Watch for the zionist entity to hit Iran and screw up the oil supply-"Bonkers" Bolton and "Nutty" Netanyahu are making the rounds again getting the sheeple used to the idea.
QE3 will consist of either confiscation of IRAs and 401Ks, or a directive that 20%+/- be used to purchase treasury notes/bonds- it's the only pool of $ that can take the edge off of foreign non-purchases...then we will truly be Japan - until we're not.
thanks ZH for posting this schedule and keeping everybody informed. i have bookmarked this page, and i will be disregarding all the news from now on, this is all economic calendar i need.
BINGO!!!
(obligatory clip attached)
http://www.youtube.com/watch?v=UMRo5XCKddQ
I remember clearly when I first saw that spewing Mike and Ikes thru my nose at the theater.
i remember as well, i was about 16 and i thought i was going to die from laughing..
:D Ben should get a role in the next " Naked Gun " movie.... together with a helicopter.
Chart: SPX
http://99ercharts.blogspot.com/2010/11/spx_6001.html
http://www.zerohedge.com/forum/99er-charts
I want to hide somewhere.
The vast majority is <10 year durations.
It should be intresting when we start getting beyond 2013 when we'll be paying a gazillion dollars a year on such short issuances.
All POMO is going to PM shorts and support for China dumping back our bonds. Its already game over.
90% of $9T+ of public debt under 5 yrs. in maturity
I keep forgetting that the world won't stop in 2012 and that 2013, 2014, 2015... etc will one day come.
Sure they'll come.
But you aren't going to recognize them.
Does this mean to Buy Gold? How come everything means Buy Gold? Bad economy Buy Gold. Good economy Buy Gold. Deflation Buy Gold. Inflation Buy Gold. Strong dollar Buy Gold. Weak dollar Buy Gold. Recession Buy Gold. Economic growth Buy Gold. TV commercials say Buy Gold so it must be true. How come nobody ever says Sell Gold? LMFAO!!!!!
Instead of observing all the things people tell you to do, maybe you should try to understand why they are telling you to.
I will sell my gold when I can buy a farm and stocks at 1/10 of today's cost.
All roads lead to gold. Or death. Those are the choices.
Fiat currencies simply don't last. That is all you need to know. Just buy gold and silver before everyone else does, and you'll be fine. I know I am. Hell, I'm contemplating retirement, and I'm not even 30 yet.
I love BIG BEN ! he is a straight talker. dont take him seriously at your own peril. Since his speech at CFR in 2002 he plainly declared his intention of dropping money out of helicopters..whats new??
you try to be smart and underestimate him...its your own fault - dont blame him. he told you what he is going to do - all the rest is up to you - you are the LEADER!
Somebody please correct me if I'm mistaken. To sum up today's 30 year auction, the treasury sold 16.429 billion: http://www.treasurydirect.gov/instit/annceresult/press/preanre/2010/R_20...
The Fed, through SOMA purchased .429 bil and on Nov 19 will purchase 1.5 - 2.5 bil of 30 year. So, POMO ops monetizes 10 - 16% of 30 yr? That means, primary dealers and bidders are left holding 90 - 84% or 14.5 - 13.5 bil of today's auction? If that's correct, wouldn't that mean PDs are going to bid up 30-yr yields?
Not to ignore your question (whether rhetorical or not), I can't imagine getting any closer to "monetizing the debt" then buying an auction one week old. Of course, in contravention to his congressional testimony...
Thanks for the response. My q wasn't rhetorical and I'm not supporting monetization at all....just trying to deepen my understanding of the Fed's processes, tools & coordination with Treasury. Also, would like to gauge where 30 year yields could go from here.
So to directly respond, I think you have the right idea about the mechanics. Where the 30-year yield goes from here is anybody's guess IMHO. On the one hand, there is now Fed demand for the paper. But on the other hand, foreign CB's are probably net sellers. And I contend part of QE2 might be that there was declining foreign interest in purchasing UST's. In addition, inflation is creeping in (hurting long-term bond yields) and the US budget credibility is declining. The TLT (which I use as a proxy for long-bond prices) is down 10% from it's peak and now looks like to be in a short-term 'bear market' (in prices). Also one has to worry about black swan events, etc. Personally, I think there is much more downside risk in prices (including some sort of long-term default) then being compensation for in a 4% yield.
Thanks again for responding. I'm with you on foreign entities being net sellers. I'm wondering how much they're selling. Just read that Indirect Bidders are foreign entities (CBs, etc) but exactly who the Direct Bidders are is unknown. (Perhaps Noncompetitive Bidders are pension and mutual funds??) I suppose we should be watching for increases in the numbers from Direct and Indirect Bidders over the next few auctions. (Found these pages if you're interested: http://www.ny.frb.org/markets/soma/sysopen_accholdings.html
http://www.ny.frb.org/research/current_issues/ci13-1/ci13-1.html)
Maybe I missed something but the US$ doesn't seem to be taking any king of beating on this anticipated POMO. US$ down = assets up, US$ up = assets down. Bid on UUP is 3% of days volume. Do you see what I see?
Could someone please explain how POMOs result in a net increase in equities? I understand that the fed purchasing treasuries from the PDs frees up liquidity that is going into equities. However, the liquidity the PDs use to purchase the treasuries had to come from somewhere to begin with right? This would lead me to believe they had to pull it from other areas, like equities, to acquire treasuries in the first place. I am confused as to how this results in a net increase in equities. Thanks :)
Yes, but the money the Fed is creating is FRESH brand new money. So when they purchase the UST's, it gives the PD's that fresh new money. So, if the PD were to go out and purchase UST's to replace those sold, there would now be 2x as much demand for bonds as previously (Fed buyer, PD buyer). Hence, bond prices go up.
Of course, not all PD's will go out and replace some of the bonds. They will also purchase commodities, stocks, etc.
Think of it like this. Before POMO, $1 billion in UST's exist. After POMO, the UST's still exist (on Fed's balance sheet), but $1 billion in cash also exists. The pool of "debt-money" has been increased by a new $1 billion.
.
How many will not be able to buy a Turkey for Thanksgiving? How many will not be able to give their Children Christmas presents, much less a Christmas dinner? So, beans and rice for Thanksgiving and Christmas, if of course you can afford that. Will many have heat for Thanksgiving and Christmass much less a Holiday dinner?
Well Bernankie has assured Wall Street that they can serve $1,000. bottles of wine for their Holiday. But, what about the other 98%?
"But, what about the other 98%?"
goodluck - you are on your own buddy!
everyone for himself - the american way
Oh man, did'nt you hear. Bernankaraptor already hit the delete button on you 98%ers. Now, please quit posting and just go off and die. Thats a good little sheeple. BTW, bury yourself too, we don't want you stinking up the place.
So, beans and rice for Thanksgiving and Christmas, if of course you can afford that. Will many have heat...much less a Holiday dinner?
Yep. Beans and rice for the holidays if you buy it now and store it in your basement. Heat for the holidays if you get the wood split and stacked. Maybe not this year, but coming soon to a theater near you.
If the Fed can buy up all outstanding T's their will no longer be any concern about interest rate spikes...they will pay us 1% on 10yr T's just like Japan??? Issue of interest payments on national debt solved. And with Mondays little missile launch (I mean large smokey thing flying off into the sunset while our prez was getting ready to meet all our primary creditors), message could have been sent to CB's worldwide you won't sell off our dollars lest another "smokey thing" get launched off your coast. And I'm sure, once again, nobody would know what it was or who did it (wink, wink).
Get ready for the deficit commission scam!
Negotiations between the anti-trust violating, price gouging BIG PHARMA shareholders and social security/medicare would yield results. Those negotiations will never happen bc Blackstone and the Chamber won't let it.
The deficit commission is an INDUSTRY PROTECTIONIST FRONT. It's a racket. Take away the 'beyond-market rights' that big industry has over the consumer in this country: deficit problem solved.
Small and medium sized business need to go to WAR with the Chamber, now. The unorganized sheep don't know what they're doing.
why aint AAPL at $400 yet ???
If I could print a Bizzilion Dollars from nothing and get paid interest on that Bizzions of Dollars that I did not have I just created, I would. Who would not, as the more I printed the more I made in interest. With keeping interest rates low while I printed a Bizzion Dollars it would give everyone the idea that the Money was free. But, when I bought all of the Debt and the WHOLE COUNTRY owed me a Bizzion Dollars and the Interest on those Dollars I would raise the rates. I would effectivly enslave every worker to pay me almost all of their earnings.
I also have what is called the IRS who will strip you of all of your assets and imprision you if you do not pay me back the Bizzion of Dollars I printed from nothing and all of the interest due. And once I own all of the Debt I will raise Rates to the Moon so you will owe me everything you have. Every American Family will be indebted to me by at least 2 Million Dollars. I will strip you of all of your assets and I will own everything. My legal abiltiy thru the IRS insures that.
Waterfallsparkles thats one of the reasons i have nothing. I got rid of truck , business and sold my half of house for 10.00. IRS can shoot or jail me, no way will they see a dime from me. NSA, if you are reading this ..Fuck you!
Before the FED there was not an income tax. Once the FED was established the Income Tax came in to being. It is a shame that all of the FED printing of Money is impoverishing good people like you. You had a Business and you were doing well but the FED printing cost you everything. I feel for you as you lost everything because of the FED and their Reckless printing of Money and then charging you for it thru Income Tax and inforcing it thru the IRS.
Correct. Taxes are what give Fiat fed Money teeth. There is no other reason to have income taxes - after all the fed could in theory just print up the money needed to run the govt. But - then no one will have any respect for the money. barter and alternate local currencies would flourish. So you introduce taxes backstopped by the State's monopoly on violence - ya dont pay - we git our goons here ta rough ya up a leetle bit. fiat money requires taxes to give it meaning and violence to back up the taking of private property ( taxes). Just monetary economics 101 - nothing particularly contovertial here - but perhaps some folks are surprised and disgusted by all this. In tha case I would advise not delving into geopolitical strategy - that takes all this up a couple of notches.
Hmmm 105 billion in a month...hmmm good so time for a bubble in everything!
And when the party is over and everybody is strung out on the floor with nothing left but empty bottles, smeared mirrors and skanky hookers, THEN WHAT? You got a one way ticket to Depressionville. So enjoy your fucking party and wear a 3 ply rubber because you still are going to end up with an incurable POMO ST fricken D!
DOW at 17000 in six months...
And US Dollar to -0-.
and Ben will run out of ink, paper, and helicopter fuel.
Half Wit Human says 20000!!!
if i were the chinese, i would buy all the gold and oil now, while i could still get some value out of those treasuries!
I believe thats exactly what the Chinese are doing, and QE2 is to absorb the shock until the dollar is worth -0- soon. Then we'll be having some real fun as equity holders gleefully go to cash in their rich DOW 17,000 stocks for dollars which are absolutely worthless.
Well, I think it would be nice next April 15th if everyone photo copys loads of hundred dollar bills and send them to the IRS.
Money for nothing and your cheques for free. Kick the can and pay a few more people off. Charming.
So apparently the Fed will be allowed to print enuf money to reinflate everything...but what stops them from buying everything w/ the worlds reserve on print overdrive?
Yes, it's world domination for a small elite (don't think nation) via printing w/ the military and CB's all self reinforcing.
Real estate a $3 or $4T problem in the US? - not anymore, print up enuf and w/ 20% down ($600 to $800B) Fan and Fred can hoover it all up and hold it indefinitely. Good as destroying the homes to limit the supply reinflate the remainder and reigniting new construction (and resolving UE) due to the "lack of supply".
No credit a problem - not anymore, again Fan Fred (FHA) will pass out loans w/ 3% down and nary more than a pulse to get you in the game.
UE a problem? - Not anymore. No job, no problem as we've got programs aplenty to keep you on life support.
Almost makes you want to lob a missile over their heads to show your disapproval. Too bad that would never happen.
Don't leave me hanging on like a yo-yo
Literally almost every day for three weeks! It's unbelievable. Why anyone wouldn't go all in longs at this point I don't know.
It appears that the FEd has more control over American its Money and its Citizens than the President, the Congress and the Senate.
Only a few more QE POMO's and we can get back to derivatives trading. Sunshine and lollipops for everyone!!! Paper, deposit loan accounts, and equity credit is equivalent to productivity, innovation, and real employment creation. Am I right or am I right?
http://blogmaverick.com/2010/11/08/how-the-fed-is-getting-qe2-wrong-the-anti-wealth-effect/
"Everybody's doing a brand new dance now, Come on baby, do the Ben Pomotion"
for the next QE installment, 2.1 or 3, the new york fed should make the schedule importable to MS outlook and google calendar. and it would be nice if could follow them on twitter and facebook like the rest of my favorite entertainers.
Gary Schilling was interviewed this evening on Peter Schiff's show and he talks about deflation because the banks aren't lending. Anyone care to comment?
http://www.schiffradio.com/site/rd?satype=2&said=1&url=http%3A%2F%2Fwww....
So the way he describes it the banks sell bonds to the fed which increases their reserves and they can only do two things with those reserves: lend them out or buy more bonds. If that's true, how does the money end up in the markets?
EURO daily chart bearish warnings continue.
US Dollar daily chart bullish warnings continue.
http://stockmarket618.wordpress.com
Zoellick doesn't literally mean " a new gold standard", and, indeed, he clarified his remarks subsequent to that. He means "a new monetary system, because this one's fucked"...and that's what most probably will happen in the coming 5 years or so.
Bernanke's cumulative actions will likely force the rest of the world to the table - they'll have to act. I think that is his intention. He wants a new monetary order. But the only way they will get it is by forcing it - there's no point in asking...Zoellick is clearly thinking along the same lines.