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Presenting The Fed's Balance Sheet Through 2012 - Fed Will Surpass China As Top Holder Of US Debt By The End Of The Month

Tyler Durden's picture




 

As is all too well known by now, starting over the next few days, the Fed will commence purchasing $75 billion in Treasury securities monthly until the end of June, and will buy an additional $35 billion in Treasurys to make up for declining holdings of MBS (due to repurchases). We still believe that as a result of the imminent drop in rates (especially those around the curve belly), as we have claimed for over a month, the feedback loop that will be created will result in a far greater repurchase frequency of MBS securities over the next 8 months, and we would not be surprised if at some point in Q2 2011, the Fed is buying $150 billion in Treasurys monthly. Since nobody will believe this until it is actually confirmed by the H.4.1., we will leave this topic alone for the time being. And after all its will "only" mean a rotation of Fed holdings, a switch in duration, and an impact on the shape of curve. What is certain is that on June 30, the Fed's balance sheet will have $2.68 trillion (or more) in holdings, of which $1.77 trillion will be in Treasurys, compared to the $840 billion today. What is also certain is that the Fed will not be able to stop there. Which is why we have extended the projection period through January 2012. At that point the Fed will hold $2.6 trillion in US Treasuries, or roughly 25% of total US marketable debt at that point.  And for those who collect now completely irrelevant statistics, the Fed will surpass China's $868 billion in UST holdings before the end of November. Yes, ladies and gentlemen, shit just got real.

Incidentally, nowhere do we assume that the Fed will have launched QE 3, 4, and so forth, over the next 12 months, even though we now estimate the probability of America becoming an exponentially self-monetizing, Weimar-type case study in hyperinflation at over 50%.

 

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Wed, 11/03/2010 - 23:20 | 698298 Clayton Bigsby
Clayton Bigsby's picture

"Yes, ladies and gentlemen, shit just got real." - fucking genius - keep up the great work kids

Thu, 11/04/2010 - 00:28 | 698463 Herd Redirectio...
Herd Redirection Committee's picture

I liked this quote: "we now estimate the probability of America becoming an exponentially self-monetizing, Weimar-type case study in hyperinflation at over 50%"

Whats two things they don't teach you in school?  Money, and history.  And definitely not the history of money!

http://psychonews.site90.net

Thu, 11/04/2010 - 05:32 | 698848 LeBalance
LeBalance's picture

and more that they don't teach you in school: critical thinking, high confidence in your own unpopular opinion, self motivation, ....

Wed, 11/03/2010 - 23:21 | 698311 Sam Clemons
Sam Clemons's picture

Hahaha.  Everything is fine.  Invest all your money in PCLN.

 

http://verydemotivational.memebase.com/2010/11/03/demotivational-posters...

Thu, 11/04/2010 - 05:51 | 698856 66Sexy
66Sexy's picture

metals are surging. wondering if this is the melt up http://www.youtube.com/watch?v=eb1n1X0Oqdw

Wed, 11/03/2010 - 23:24 | 698317 putbuyer
putbuyer's picture

WHAM! The stock market collapses because there is no one to buy any of the stock for sale, at any price. It happens in the morning and the word gets out quickly. People know that something big is going on. By noon Eastern Standard Time the whole country is awash in the news. By two o'clock in the afternoon the big box stores are starting to sell out of groceries. All gasoline, food, and ammo are sold out that day. The unthinkable has happened. America has gone to her bunkers and awaits the anarchy that is sure to come. And the next day it begins. Those too stupid or unheeding are out and about looking for what they did not have to begin with. Violence breaks out all over the country, with warehouses in major cities being especially abused. Within a couple of days there is organized looting and robbing taking place. The bigger the marauding gang the more vicious they are. Power begets cruelty and lack of compassion.

Wed, 11/03/2010 - 23:56 | 698349 hedgeless_horseman
hedgeless_horseman's picture

A financial earthquake?  Could that happen?  What would it look like?    http://www.cbsnews.com/video/watch/?id=6111518n

 

Wed, 11/03/2010 - 23:49 | 698380 DoChenRollingBearing
DoChenRollingBearing's picture

For a minute there I thought I was reading a TEOTWAWKI novel...

But, putbuyer is right about being prepared for anything.  Gold, silver, guns & ammo, food and rural farmland are all worth looking at if the SHTF.

If things look like they could get that bad, the Bearing will look at moving to Peru!  Could live well there with what we have, and they are used to a lot of poverty around.  Self-sufficient in food too.

Thu, 11/04/2010 - 00:10 | 698436 Yits and the Yimrum
Yits and the Yimrum's picture

losing hope is the worst thing that can happen; so a good plan like yours is a must

i already have become a hobby farmer, and am investing my wages along those lines along with a hoard bought in 2003

good luck DoChen, and I hope your exit goes smoothly if it comes to that!

Thu, 11/04/2010 - 01:47 | 698546 dark pools of soros
dark pools of soros's picture

what will the guns & bunker crowd do with lots of rural farmland?? they'll only need a half acre for themselves (since they will shoot everyone else, and not be haulin tons of food to the market) but will need about 60 acres of wooded land as a bufferzone..  with beartraps, etc

Wed, 11/03/2010 - 23:24 | 698318 mark mchugh
mark mchugh's picture

Well, the Fed is supposed to be the lender of last resort, right?

Wed, 11/03/2010 - 23:51 | 698386 Yits and the Yimrum
Yits and the Yimrum's picture

with 2.7 trillion on the Fed books, you know that there is going to be be major foreclosure on everything that moves in the good ole USA down the line

the statist pipe dreams must compete with jackboots that will have amassed 2.7 trillion doolars in claims

guess who wins on that score?

Wed, 11/03/2010 - 23:27 | 698324 monopoly
monopoly's picture

Bernanke has no idea what he is doing but this is all he knows. It will be QE till eternity or until we blow up. If we just let the system reset 2 years ago, we would probably start moving up on real numbers and growth.

When this blows up it will be a shot heard round the world.

Even the inmates are shaking their heads at the absurdity of it all.

Wed, 11/03/2010 - 23:32 | 698338 knukles
knukles's picture

Well, no need to listen to those unscrupulous, underhanded, mysterious little untrustworthy commie bastards anymore.

Mission Accomplished.

BTW, does the Fed make campaign contributions, handle wire transfers for TPTB or any other sort of activities that'd make some folks blush if there were an audit of the total scope of Fed activities?  No, not just like where the audit discussions drew to a close last time of auditing FOMC OMO decision making (Farce) but the whole enchilada.

Any educated guesses?
Messers Pauls, please! 

Wed, 11/03/2010 - 23:32 | 698339 laosuwan
laosuwan's picture

I predict that the fed will forgive the principal and interest on the bonds it has "bought" and the treasury will magically be solvent again.

Slick.

Wed, 11/03/2010 - 23:43 | 698362 snowball777
snowball777's picture

That should provide plenty of spending room for the war with China it would cause.

Thu, 11/04/2010 - 11:37 | 699697 laosuwan
laosuwan's picture

Exactly

Fri, 11/05/2010 - 11:28 | 702689 Coldsun
Coldsun's picture

The only real losers are the people.

Wed, 11/03/2010 - 23:34 | 698345 King_of_simpletons
King_of_simpletons's picture

If I remember the moves in 'art of war', China will become an impoverished nation pretty soon holding worthless paper.. pretty soon.

Thu, 11/04/2010 - 07:45 | 698914 tmosley
tmosley's picture

I don't think you read the art of war.  If you had, you would see that China has taken whole.  So what if China loses out on the value of its dollar stockpile?  They have the entire world's industrial base!  It doesn't matter what kind of money is circulating in the world, it will all flow that way until that changes.

Thu, 11/04/2010 - 08:20 | 698953 IE
IE's picture

Entire world's industrial base?  Exaggerate much?

Thu, 11/04/2010 - 09:32 | 699184 jdrose1985
jdrose1985's picture

LOL what a fucking douchebag

And what, pray tell, does China actually produce that we can't do without???

 

Peter Schniff has had his way with you...

 

Wed, 11/03/2010 - 23:38 | 698352 Shameful
Shameful's picture

"even though we now estimate the probability of America becoming an exponentially self-monetizing, Weimar-type case study in hyperinflation at over 50%. "

Does this mean you see a 50% chance of no hyper inflation? Or does it mean that the 50% is that the dollar hyperinflation won't be a case study? Hell if it's 50% no hyperinflation then that is good news, means that we are playing Russian roulette with only half the chambers loaded, far better then my estimates :)

Wed, 11/03/2010 - 23:41 | 698356 Youri Carma
Youri Carma's picture

TnX! Great Stuff - Graph Also Zero Hedge!

Wed, 11/03/2010 - 23:43 | 698363 Blah Blah Blah
Blah Blah Blah's picture

Huh?  The Treasury offers the debt and the Fed buys it?  What a great system (heavy sarcasm)......only in a broke country can you offer debt and buy it yourself.  And the statist want to investigate BoA, JPM and Wells?  Why aren't the lined up to put an end to this madness?

Thu, 11/04/2010 - 02:43 | 698730 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Uh-huh.  Yup.

Wed, 11/03/2010 - 23:47 | 698370 buzzsaw99
buzzsaw99's picture

mo money

mo money

keep on truckin'!

Wed, 11/03/2010 - 23:49 | 698378 gwar5
gwar5's picture

This is taking liars loans to a whole new level

Thu, 11/04/2010 - 00:30 | 698466 snowball777
snowball777's picture

LOL

Wed, 11/03/2010 - 23:57 | 698401 Eric Cartman
Eric Cartman's picture

I just wanna front fun the fuckers. So 5-7 year futures should fair well. I know they're at historical lows but never underestimate the power of the fed, they can take these bonds to newar 0 if they so desire. 

Wed, 11/03/2010 - 23:59 | 698403 Flatchestynerdette
Flatchestynerdette's picture

well....i would say better us than them  but there's something to be said for china to hold worthless shit, considering they've put our people out of work because they won't let the yuan float and nobody has the balls to call them on it since a trade war might happen. $2 knick knacks would be gone, now what?

Thu, 11/04/2010 - 00:31 | 698468 snowball777
snowball777's picture

If you feel that bad about it, burn down a Wal-Mart or three. "They" are merely vendors to the people who put Americans out of work. Know your enemy.

Thu, 11/04/2010 - 07:48 | 698918 tmosley
tmosley's picture

Funny you think it was the Chinese that put you out of work.  When you lose your job because your company wasn't profitable due to high state taxes and regulations, is it the fault of the neighboring state that doesn't have those taxes or regulation?

If you get mugged, are you poor and wounded because everyone else wasn't also mugged?

Thu, 11/04/2010 - 10:27 | 699372 snowball777
snowball777's picture

Yeah, couldn't possibly be because your company was actually unsuccessful, or rife with embezzlement, or a pump and dump scam.

Thu, 11/04/2010 - 00:16 | 698415 Flatchestynerdette
Flatchestynerdette's picture

Bloomberg says that Goldman Sachs was advising traders to 'buy the long end of the curve.' Surprise! Anyone see where the 30s were trading? what a joke. its no wonder that the carpenter, the plumber, the trucker, the cashier, the waitress, et al, despise the BANKERS.

Thu, 11/04/2010 - 00:02 | 698416 Everyman
Everyman's picture

Ben Bernake when he was younger:

"Can anyone give me a 5 dollar bill for a twenty?"

Thu, 11/04/2010 - 00:15 | 698444 RoRoTrader
RoRoTrader's picture

Exactly. It is a fucking joke. Seriously.

I am Not paying. Repeat after me; I am not paying.

One more time; I am not paying, dummy.

Translation; don't have the balls to admit it so will steal from someone, anyone, must be some dumbfucks to steal from.

 

Thu, 11/04/2010 - 02:51 | 698770 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

How I Turned a Trillion in Real Estate into $25 in Cash!

Thu, 11/04/2010 - 00:37 | 698474 Segestan
Segestan's picture

I don't get it!!   40+ years of exporting American jobs , how the hell did this thing go wrong???

Thu, 11/04/2010 - 00:50 | 698488 agrotera
agrotera's picture

I looked at the picture and this song played in my head: http://www.youtube.com/watch?v=b0LDbf4ipWM

 

Thu, 11/04/2010 - 01:19 | 698518 RobotTrader
RobotTrader's picture

The Fed can buy unlimited amounts into infinity.

Because they are accountable to no one.

And our foreign debt enablers are inclined to keep wolfing down U.S. Treasuries as long as the PIIGS countries keep imploding.

And nobody, I mean NOBODY is ever going to audit the Fed.

Thu, 11/04/2010 - 01:32 | 698531 agrotera
agrotera's picture

i don't know, i think we might just get the fed audited, but will the money that is effectively grafted out of the pockets of generations of taxpayers ever be returned?

There may be bigger games than central banking at this point, so the drama of the fed ending might just be the thing to keep us all busy while the set up for the next scam takes hold...(I heldplessly sighed)

Thu, 11/04/2010 - 03:26 | 698791 plocequ1
plocequ1's picture

Youre absolutely correct Robo. Its all about keeping the stock market going. I knew this a long time now and i don't even go to Harvard. You don't have to be a fucking genius to figure it out, Just a cold hearted realist. Those who would flag this as junk are not facing the cold hard facts. The facts are, To the Fed, There is no economy, Unemployment or Americans..There is only AT&T, Goog, AMZN, Appl, Amzn, Etc, And no, The Fed will not be audited. Im not saying its right, Its just what it is. In the end, We are all screwed. If this was Huffingtonton Post Robo, I would fan you...

Thu, 11/04/2010 - 08:22 | 698959 zhandax
zhandax's picture

The US Federal Reserve Note (AKA US Currency) has one enumerated consideration;

"This note is legal tender for all debts; public and private"

IOW, it is accepted for payment of US taxes and settlement of AT&T, Goog, AMZN, Appl, Amzn, Etc. as long as the sellers will accept it.  So much for the peeps in NA.  For the peeps on the rest of the planet, YMMV. 

Where it gets really interesting is if some of these newly-elected 'Tea Partiers' actually grow a pair and don't accept the invite to the corruption ball perennially hosted and paid for by wall street (admittedly fantasy if past history is any guide).

If any of the new congressmen don't want to play ball with Lloyd and Jamie and instead re-institute a Constitutionally-mandated currency (or even some similar bastard variant) the fed is on the hook for all those notes they have circulated; which is now outside the US Government.  This in turn means their stockholders will have to settle the claims against those trillions of assets on their books.  Guess who those stockholders are?  A bit of quick legislation should insure that the first claims paid are to the Social Security Trust Fund (largest holder of fed debt).

A return to the Constitution with cutting the cord between the US Government and the six sinners, and you have the sacking of the TBTF and the fed fait accomplis.

 

Ok, I know this is fantasy, but Obummer doesn't flee the country after complete discrace every day and I may as well increase the tension level a bit?

Thu, 11/04/2010 - 04:25 | 698826 Fraud-Esq
Fraud-Esq's picture

Monetization is the price the debt enablers pay for interest on excess cash made off our consumption and our system of "free trade", not to mention they're doing business with the only military power in the world. They'll take their hit like we will. Everyone in charge will smile....so far.   

Thu, 11/04/2010 - 01:25 | 698520 palmereldritch
palmereldritch's picture

FED, Red...what's in a letter?

Imagine what the world will be like when they merge and combine their power for the good of all!

so kiss a little longer...laugh, a little longer....

http://www.youtube.com/watch?v=ji08P-R00OY&feature=related

Strange...looks like they edited out the gulags

Thu, 11/04/2010 - 01:43 | 698545 Element
Element's picture

Frankly, I think Ben is going to be buying a lot more toxic MBS rather soonish, not unloading it.

Thu, 11/04/2010 - 21:04 | 701593 Element
Element's picture

On second thought, any extra MBS is going to be worth what? Not much at all.

Yet the MBS the Fed holds, as displayed, is priced as something substantial. So the level is a bit optimistic, in that case (but this is extend and pretend ya know, ya gots-ta-baleeve!).

However, on third thought, all that consolidated MBS muck, is also falling in value and credibility faster than even the Fed reputation, or the USD it prints, (or the Govt it props up) that these assets 'back'.

So, Ben probably could use more physical RE assets, just to make it look like he has some realisable actual assets to back up his balance sheet?

Back to my first thought, I recon he's going to end up with a lot more MBS, they just wont be worth anything, so will only inflate the asset book in abstraction (... but if he had the note ... that could actually mean something ... sell it off to his TBTF mates, like, really cheap ... hey, Bill! ... come over here a minute ...).

Things that make you go ...hmmm.

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Fri, 02/25/2011 - 05:59 | 698814 Dr. Sandi
Dr. Sandi's picture

.

Thu, 11/04/2010 - 04:12 | 698821 TheMonetaryRed
TheMonetaryRed's picture

Tyler just doesn't seem to get it yet.

For starters, relative to its legal commitments, the U.S. government robbed the Social Security and Medicare Trust Funds of at least four trillion dollars. When you take $4 trillion that doesn't belong to you, you can't pay it back - because it's $4 trillion and nobody could pay that back - so we're going to default in some fashion. But we have to at least appear to pay it back - because we're the government and we are responsible for the rule of law. So

So, you were always going to monetize just to plug that hole. We've known that was coming - if nothing else - for a decade. 

The Fed is monetizing. This is not amazing. This is not historically unprecedented. This will not lead to hyperinflation.

Monetization is a kindler, gentler version of default. Go hysterical about it because you think it's not supposed to happen, but you're wrong. It is supposed to happen because it is the better than outright default.

Thu, 11/04/2010 - 04:26 | 698827 Fraud-Esq
Fraud-Esq's picture

What are some good monetization trades, in your opinion...

Thu, 11/04/2010 - 04:54 | 698835 TheMonetaryRed
TheMonetaryRed's picture

Well, it's the middle of the night but...

You had to try to pick of some of the DGP at $37.75-$38.00 and maybe just from now on. Whether you think gold is a bubble or you think we will be going back to paying in ducats, there's one answer on everyone's lips: gold.

Singapore dollar still looks good, surprisingly, and I like the Korean won - but less. Brazil is just SO crooked. I mean you hope, but...

In stocks? Yikes...U.S. stocks just give me the chills. I'd wait for a crash first.

I'm hoping that companies in Singapore, Korea, Australia and Canada really start to decouple and shine.

Bernanke is making a BIG mistake by monetizing regularly and gently. It will start to generate a very predictable little roller coaster. I just wouldn't know how to play that, though, frankly.

Anyway, the thing about monetization is that it's a result of a managed deflation. Managed deflations are the worst possible environment for investing. So, sorry, just nothing that exciting to say, really.

Invest in your own or your family's education maybe???

Thu, 11/04/2010 - 08:32 | 698986 sethco
sethco's picture

hey, y'know your handle is an anagram of 'The Money Retard'.

just an observation. no judgements...

Thu, 11/04/2010 - 09:47 | 699234 Sancho Ponzi
Sancho Ponzi's picture

There is nothing 'kind' about monetization. You tax people 12% straight off the top for social security, blow the money, then monetize the debt because it is the only remaining option. Diluting the value of the dollar raises the cost of commodities, which leads to higher prices for fixed expenses such as food and fuel, so you are taxing those who can least afford it twice.

You've got a screw loose if you don't have a problem with the insidious effects of monetization.

Thu, 11/04/2010 - 04:45 | 698831 JimboJammer
JimboJammer's picture

Glenn  Beck  show  Nov 3rd  2010 ... Glenn Explained  this  to  the  viewers

He  did  a  great  job....  the  masses  are  wake - ing  up...

The  US  Dollar  is  Dog  Food ...  like  germany  1922 ...

Thu, 11/04/2010 - 04:52 | 698834 JimboJammer
JimboJammer's picture

When  people  loose  faith  in  their  currency ... they  get  out  of  it..

This  time  it  will  be  a   theater  full  of  people  ,  and  some  bozo

shouts  >>>  "  FIRE...!  "    it  will  be  4  times  bigger  than 

the  crash  of  1987 .   That  was  bad ,  I  got  beat  up  that  day..

Thu, 11/04/2010 - 05:01 | 698836 plocequ1
plocequ1's picture

The Dollar about to say good bye to 76s and say hello to 75s. Bens inflation wish may come sooner than later. When the dollar falls below 60, I will quote Max schumacher.."All of a sudden it's closer to the end than the beginning, and death is suddenly a perceptible thing to me, with definable features".

Thu, 11/04/2010 - 05:04 | 698840 tim73
tim73's picture

Developing nations could do the unthinkable, refuse to sell their products in dollars, especially raw materials. It is either huge internal inflation due to pricing in dollars or cut the dollar out of the loop. That would collapse USA within few weeks.

Bernanke just made the all-in bet, betting on the importance of US consumers to the world markets. I think that is way overestimated. They will call this bet and Americans will face the Argentina 2001 type of collapse.

 

Thu, 11/04/2010 - 05:31 | 698847 StychoKiller
StychoKiller's picture

Looks like my theory was right -- according to this chart, the Fed is laundering MBS's into Treasuries.  Guess who gets to pay for it all. :(

Thu, 11/04/2010 - 06:46 | 698887 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Wasn't China's holdings of USTs seen as a distinct threat to national security just a short time ago? Remember when the Joint Chiefs said that external debt was of major concern?

Well, the debt is no longer going external, get it?

Events unfolding cannot be reduced to conspiritorial causalities. It is more instructive to look at what is happening in terms of logics of the unconscious, or dream logics ...

Thu, 11/04/2010 - 07:56 | 698928 israhole
israhole's picture

If you owned a restaurant but were your own best customer, it wouldn't really be considered a viable business, would it?

Thu, 11/04/2010 - 10:44 | 699450 snowball777
snowball777's picture

Depends how many other customers you have. If you are 'best' at 5% and have 25 customers at 3-4%, you're making good coin (only 95% of what you'd make if you didn't eat your own dog food). You might even improve the quality of the product knowing you'll be eating it too.

Thu, 11/04/2010 - 08:23 | 698960 the not so migh...
the not so mighty maximiza's picture

They bought or rather printed anouther 9 months , thats it.

Thu, 11/04/2010 - 08:51 | 699035 Triggernometry
Triggernometry's picture

Priceless, literally.

Thu, 11/04/2010 - 09:04 | 699081 Bill Lumbergh
Bill Lumbergh's picture

If I did not know any better the Fed is throwing in the towel and trying to piss off China.  Gold has just experienced a $45 one-day reversal and still has room to run.  Ben cannot be this stupid unless the game plan all along was to bring the United States down.

Thu, 11/04/2010 - 09:04 | 699082 Bill Lumbergh
Bill Lumbergh's picture

If I did not know any better the Fed is throwing in the towel and trying to piss off China.  Gold has just experienced a $45 one-day reversal and still has room to run.  Ben cannot be this stupid unless the game plan all along was to bring the United States down.

Thu, 11/04/2010 - 09:11 | 699113 Fix It Again Timmy
Fix It Again Timmy's picture

Yet, another first for America, is this a great country or what?

Thu, 11/04/2010 - 09:49 | 699240 Sparkey
Sparkey's picture

This is just a bad dream which can't be true, For Christ's sake! We just "won" the cold war, somebody has things mixed up, surely you mean; this is happening in China and Russia? don't you? Really! Having said that, I've often thought it was not really a smart move to go immediately from "Winning" the cold war to "Starting" the hot one! Perhaps our rulers believed that that which had brought victory in the Cold war would guarantee victory in the Hot one. ( so far in Afghanistan, Iraq and soon to be Yemen, we have only been throwing gas on the fire, it hasn't really flared up yet, When America has destabilised the World financially, then the Hot war will really begin. This fire is going to be really hot when it finally gets going!)

Thu, 11/04/2010 - 09:57 | 699251 overmedicatedun...
overmedicatedundersexed's picture

let's ponder on the FED

a private BANK owned organisation that prints our currency (odd concept that a private banking cartel prints legal tender for the nation)

1. prints FRN's

2. buy US Treasury bonds

3. bonds come due, Fed issues more FRN's and buys those bonds..

amasses assets based on US gov debt.

debt becomes larger than income (tax base) of US gov.

FRN's are devalued as world gov's cannot finance the debasing of the FRN( called the dollar by some.)

Fed becomes insolvent..

Congress enacts the repeal of the Fed charter to print legal tender

Congress enables the treasury to print US NOTES to be only legal tender in USA

Fed Bank cartel goes BK.

American holders of FRN's get to convert to US Notes for pennies on the $. (implication that all private debt will be reduced by this amount so offset of loss of FRN value)

US debt to fed is abolished as Fed Bank cartel goes BK.

US economy recovers and borrowing by Fed Gov

is again possible..

a dream or is this the game plan.

if so better get out of those 18 banks who own the FED..

comments welcome.

Thu, 11/04/2010 - 12:15 | 699833 robertocarlos
robertocarlos's picture

"Well, it might work." - RR

Thu, 11/04/2010 - 10:03 | 699282 Glass Steagall
Glass Steagall's picture

"And for those who collect now completely irrelevant statistics, the Fed will surpass China's $868 billion in UST holdings before the end of November."

I'm in no way trying to defend the Fed or fractional reserve banking for that matter when I ask this, but: Isn't this a good thing? Do we really want China controlling the lion share of U.S. debt?

I know the whole thing is a ponzi, but the idea that China could (if it wanted to) dump Treasuries and thereby tank the dollar (if it wanted to) is a little troubling...

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Thu, 02/24/2011 - 00:57 | 991806 shawnlee
shawnlee's picture

If I did not know any better the Fed is throwing in the towel and trying to piss off China. Gold has just experienced a $45 one-day reversal and still has room to run. Ben cannot be this stupid unless the game plan all along was to bring the United States down.

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Tue, 03/22/2011 - 03:42 | 1085115 shawnlee
shawnlee's picture

If I did not know any better the Fed is throwing in the towel and trying to piss off China. Gold has just experienced a $45 one-day reversal and still has room to run. Ben cannot be this stupid unless the game plan all along was to bring the United States down.charlotte condos - indigo airlines

Tue, 07/12/2011 - 01:23 | 1446823 newdeals2
newdeals2's picture

If I did not know any better the Fed is throwing in the towel and trying to piss off China. Gold has just experienced a $45 one-day reversal and still has room to run. Ben cannot be this stupid unless the game plan all along was to bring the United States down. a+ exam questions | ase exam questions \ ccda exam questions \ ccent exam questions \ ccia exam questions \ ccie exam questions \ ccip exam questions \ ccna exam questions \ ccna security exam questions \ ccna voice exam questions \ ccna wireless exam questions \ ccnp exam questions

Tue, 08/16/2011 - 00:40 | 1564217 newdeals2
newdeals2's picture

Staff has also projected the Fund balance and reserve ratio for each quarter over the next several years using the most recently available information on expected failures and loss rates and statistical analyses of trends in CAMELS downgrades, failure rates and loss rates. Staff projects that, over the period 2009 through 2013, the Fund could incur approximately $100 billion in failure costs. Staff projects that most of these costs 642-647 | Pass4sure 642-165 | Pass4sure 642-067 | 1z0-051 | Pass4sure 310-065 | Pass4sure 642-504 | Pass4sure 642-655 | Pass4sure 650-195 |

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