Federal Reserve

"When people kid around that the Fed has become another hedge fund now that it is the lender of first, second and last resort — to mention the market-maker for everyone including RVs and mobile homes — it really is no joke at all. See NY Fed in Hiring Spree as Assets Soar. The New York Fed is seeking to bolster its staffing of traders — not research staff, but traders — by nearly 70%!! When will the Fed start hiring investment bankers? That is what we would like to know."

Foreign holdings of USTs and Agencies increased by $23.5 billion monthly to $2,810 billion from $2,787 billion in the prior month. This is now less than 20% of the comparable increase in Securities Held Outright by the Federal Reserve, implying foreign purchasers are starting to fall far behind in their purchases of US securities relative to the Fed's monetization rate.

Zero Hedge recently submitted a FOIA to the Federal Reserve regarding information prepared by Davis Polk and Morgan Stanley in their capacity as legal and financial advisors to the Fed in its negotiations on whether or not to push AIG into bankruptcy. We present their response.

And speaking of the Fed's balance sheet (and not the public side but the $9 trillion in off-balance sheet voodoo), here is some good reading, especially with certain politicians hell bent to prevent HR1207 from occurring despite the 280 or so congressmen in support of the proposal (a very self-destructive apathy that Zero Hedge will speak more on in a few days).

The Fed's monetization of securities accelerates on declining Foreign purchases and an imperative to keep mortgage rates at artificially low levels

Tommy Mottola must be considering signing a record deal with the lately omnipresent Ron Paul.

Incidentally, from Ben Bernanke's ongoing presentation to the House committee, when asked "How does providing factual info on Fed discussions compromise the Fed", Bernanke had this highly illogical reponse:

1. It would inhibit discussion.

2. It would inhibit the provision of information.

3. It would implicity provide the sense that Congress was second-guessing or trying to overrule the FOMC's decisions.

Did Wall Street chip in for the prompter on this response? The absurdity of Bernanke's answer would likely provide Lewis Black with hours of stand up entertainment fodder.

A must watch introductory clip by the American News Project which summarizes well the current push to unmask the inner workings of the Federal Reserve, the urgency of increasing transparency and the groundbreaking nature of Ron Paul's HR 1207 bill.

Total Federal Reserve balance sheet assets for the week of June 24 of $2,048

Total Federal Reserve balance sheet assets for the week of June 17 of $2,053 billion consisting of:

Total Federal Reserve balance sheet assets for the week of June 17 of $2,053 billion consisting of:

Total Federal Reserve balance sheet assets for the week of June 17 of $2,053 billion consisting of:

Total Federal Reserve balance sheet assets for the week of June 17 of $2,053 billion.

The chart below indicates the Fed's YTD open market treasury purchases. Roughly $32 billion in bonds/bills has been bought since the last update 2 weeks ago. The chart below can be traced back the Federal Reserve of New York's website here.

The chart below indicates the Fed's YTD open market treasury purchases. Roughly $32 billion in bonds/bills has been bought since the last update 2 weeks ago. The chart below can be traced back the Federal Reserve of New York's website here.

We are happy to announce that the HR 1207 "Audit The Fed" Bill is now one large step closer to reality, having garnered the necessary 218 co-sponsors to ensure passage. It has, in fact, 222 co-sponsors as of today and more are appearing by the hour. Please click here for the official press release.