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Fed's Balance Sheet Tops $3 Trillion, But...
... that's not true. The Fed's balance sheet, from a transaction basis, topped $3 trillion some 5-6 weeks ago. The only reason the Fed reported a $3 trillion number in today's H.4.1, or $3.013,333 trillion to be precise, is because all those MBS purchased in September and October following the September 13 reactivation of QE4EVA finally settled. In reality, the Fed's balance sheet is now some $3.12 trillion as there is about a $80-$120 billion lag between what the Fed has actually purchased, and what has settled. Luckily, at least Treasury purchases take far less to settle.
None of the above should come as a surprise to anyone: the Fed's balance sheet has been, even purely nominally, at $2.8/2.9 trillion for months. Wake us up when the Fed's balance sheet is $4 trillion, in precisely 11 months.
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It's not cheap to prop up a rotten AAPL.....
This is a little off-topic, but I just wanted to say, Diane Feinstein is a filthy, disease-ridden twat.
That is all.
Cunt would have been better.
She's a sweet lil ol Jewish girl... They always have in mind what's the best & most equitable for everyone... If she were Catholic, she'd be a saint by now...
Gosh it almost looks like an exponential equation.
The magic of compounded interest...
Don't bitch, because it's obligatory (I realize some will claim that the Fed's balance sheet explosion is not directly related to the U.S. deficits/debt, but the many on ZH know that they actually are directly related thanks to POMO) .
This has to be hammered home again & again until the Lamestream Media feels compelled to respond to it (maybe a 60 Minutes piece, or a Martin Smith PBS Frontline episode):
If they respond to it in such a manner, it'll be a sign that awareness is growing even amongst some dazed sheeple as they feel the hairs on their backs tingling a bit.
That'll serve to partially offset Jerry Moonbeam's & Paul Krugman's incredibly disingenuous, fraudulent proclamations of late that the "deficit is resolving itself" (no, really, both have made comments along these lines, recently):
Senator Barack Obama
Senate Floor Speech on Public Debt
March 16, 2006
*At the time Obama gave this impassioned speech, vehemently opposing any increase in the nation's debt ceiling, the official U.S. national debt was approximately 8 trillion USD lower than where it stands today.
What a great title for a new reality show!
Feinstein, Bloomberg, and Schmuck Schumer are leading the pack to ban guns and they are the same group that would be first to tell you about all the Jews who died because of Hitler’s slaughtering of their ancestors in Nazi Germany. I find this so amazing because the very reason they were butchered was because they had no guns to protect themselves.
The only thing the jews learned from the holocaust was how to be nazi's themselves next time around...
The Jews created the Holodomor before the Holocaust. It has always been their goal to annihilate the goyim. Everything they do is about centralizing power and then using the power to kill goyim.
They are pissed about the Romans and always will be,
Romans... & Egyptians before that...
~~~
That's why it's impossible to talk about it with any context whatsoever today... Every FUCK that lives nodadays thinks that HISTORY simply traces back to the Civil Rights Era in the 1960's...
Is my Jewish neighbor in on it?
If not, perhaps you better do some vocabulary work and find the right word or phrase to communicate yourt idea with more finesse than an elephant stampede.
It isn't "the Jews." They are very wicked and powerful people running a financial fraud on essentially the world... maybe 99.99% of "the Jews" as well.
500,000 of "the Jews" are out protesting their "the Jews" government over in Israel - so they'd like to know when they are going to get their loot from the bastards at the top robbing them. They must have missed that memo.
http://www.youtube.com/watch?v=Lz7MjNMdH2U
The whole poiont of realizing the education system has dumbed us down is to inspire us to elevate our own level of thought and communication so we don't fall into their trap.
Any criminal element benefits when they get lumped in with a larger group composed of noon criminal elements.
MLK was right - it is a content of character issue. Such a simple concept, such a simple truth... so far over so many heads.
Snap out of the trance! Focus on the real criminals... not a group of mostly victims... just like the rest of us.
ditto - so tired of the Jew bashing bullshit...as if all Jews, all Christians, all Americans are "in on some scheme"...focus on the sociopaths, the criminals, the apologists...
Your effort is a considerable refinement on the usual apologia proffered here by those who wish to avoid scrutiny of the root causes of root rot...but is an apologia non the less...which will not be allowed to stand unchallenged...because...
though it's precisely correct that "the jews" as a group cannot be targeted as that root cause, as many 'jews' are non-talmudist and therefore, less toxic to the body politic, the people designated by the term need take a proactive and collective responsibility for what is and has been done in their name...
like a group of cells which having once proven itself useful in symbiotic relation to the rest of those which make up the totality of the social organism, and therefore is now accepted by it's host as non-threatening, those who define themselves as jews need recognize that a viral disease vector has shaped itself into their image and uses the subertfuge to outwit the white killer cells tasked with protecting the immune system...freakish frankist-sabbatean hijackers of judaism(and islam in the form of Dolmeh...likewise christianity in the form of calvinists)have used it's shell to attack both West and East and attempt to destroy both.
Jews need to do the necessary work to not just wake up to their being used as weapons of mass destruction against us, but to actively identify the cryptos who use them as cover for their mad schemes. The sionist project has a long record of throwing jews under the bus, but the Big Lie we live under commands that this obvious truth be not discussed.
In fact, there's no free pass for anyone to avoid doing this homework...Whitey is just as culpable for having allowed these diseased minds to nest in his\her bed...and then kick us out of it altogether, using their puppet henchmen like the Kenyan....to arrive alive at the end of this dark night of the West we're all going to have to band together to exfiltrate the frankist filth...using the influence and inspiration of jewish resistors like Michael Hoffman, Gilan Atzmon, and the many others who are showing their fellow jews the way forward.
actually, they have been racist for the last 5000 years.
And I only have 3 platinum coins. I can't even buy the Fed's balance sheet anymore.
I wonder if the annoited ones get to use their money before it settles. It would be sad for them if they lost their repoed-to-infinity mortgage back security and they couldn't play with the cash for all that time. Sad.
Not cheap at all, but it's not the last.
as Obama like to say FORE !!!!!!!!!!! Trillion
You DEFINITELY don't want that ball to hit you in the head!
It's not really a Balance Sheet, it's a large Etch-A-Sketch. One good sneeze at the Fed and all hell breaks loose...
OT but you gotta read this:
Florida cops Taser naked burglar who pooped and masturbated when homeowner pulled a gunSounds like someone has been enjoying the Bath Salts a bit too much. Oh well, Florida, nuff said.
At this rate we'll be the next California in a couple years, thus my heading for different pastures...
Believe it or not, CA is appearing more mainstream all the time in the era of the ObamaNation...and I've lived here all my life and never dreamed I'd ever say that.
BTW, the " rich " are getting the hell out of here.
http://www.foxnews.com/politics/2013/01/23/california-residents-businesses-consider-bailing-on-golden-state-over-taxes
Was this Macafee?
That was the funniest article, albeit with it's crappy grammer, I have read in a long time
As Bruni was allegedly headed to where guns were stored in the son’s bedroom, the wife fired three shots from a .38 revolver, possibly as a warning. When deputies arrived, they said Bruni was flailing around on the floor and not making any sense. At one point, he sucked the water from the spilled vacuum into his mouth and spit it back out.That is depressing.
Is it just accidental that the number is all 33333333?
Just means he's halfway there.
Getting a bit ahead of schedule aren't they?
So if we assume certain things. The budget deficit was $1.1T in 2012. At approx $800B in 11 months would mean the feds are monetizing 80% of the debt. That is only if we assume certain things. I wouldn't be suprised if those numbers ended up being low.
Clap, clap, clap!
+ $3 trillion! A milestone worth celebrating!
Forward!
bearish for gold.
Sarcasm?
120 billion... hardly worth the mention...
what can you still do with 120 billion?
not much...
create 1.100.000 jobs for a full year for example in the private sector....
but why would you do that when the population quits out of the labor force?
3 trillion on the other hand... 3 million million dollar jobs....
30 million 100k jobs...
let's say you could create 15 million good jobs and build the factories that go with it...
than yes... 3 trillion is a lot of money...
It's really not that much money if you think in terms of Wall Street bonuses.
Disgraceful!
Projected? That's an awful lot of testosterone to pump that prick up.
$120 Billion? Barely a rounding error.
4 more pixels on the debt graph...
How long before the Great Chairsatan comes out and says there is no reason for the Fed to have ANY limit to its balance sheet or sell the securities it holds....
FUBAR to Hell.
America's debt doubled in 4 years with 8 trillion dollars...
And all I got was this Obama phone...
Reply of the day?
Not true. You also got a lip synced in-awe-gyration
What is the problem? 8, 16, 32, 64, 128, 256, 512, 1024 ... even a cheap computer can do it!
it's a bit thing... no wonder bitcoins will be the future :)
Audit, arrest, prosecute and execute the Fed.
Fuck you Bernanke, you fucking bank propping fucking middle class wealth destroying fuckhat. Drown in fucking diseased whale shit asshole.
Fear & Loathing In Public Opinion
http://chartistfriendfrompittsburgh.blogspot.com/2013/01/fear-loathing-in-public-opinion.html
those denver mint platinum plated state quarters i got on ebay are going in the vault now, with the guns
man, you are lucky - unfortunately, i lost everything in my storage garage in a nasty conflagration
333333 cause this number was filtered by Topeka Capital Markets Analyst
What nobody seems to understand is that the Fed NEVER needs to "shrink its balance sheet".
This is a perpetual money machine as long as people insist on using the FRN...
We all understand that the Fed never need, or will, shrink its balance sheet. It was designed as a perpetual money machine.
There is sooooo much liquidity in excess reserves that we can't even have the slightest of selloffs before all those with "money" r looking to deploy...wonder how high this bubble will get and just how this will end???
It was designed as a perpetual money machine.
We all know that - but it doesn't stop loads of supposedly-intelligent commentators discussing what will happen when "the Fed has to shrink its balance sheet"...
You are right. The confidence game continues until the confidence or the confidence man runs out (and it is almost always the confidence man that ends it).
Many are betting on the probability that when 'they' are ready, the presses will stop dead in their tracks. Just like they did with the housing bubble, watch for the spike
I love my dollars.
They seem to buy less and less, especially since 2008, for some reason...
ponders whether mbs being "settled" means the mortgages are paid off, marked to market, in foreclosure, stuck with MERS,
or,
being rolled over
and also how much of the interest being paid on mbs is actually interest on mortgages and how much maturing is principal
and
why, if the Fed owns 80% of the mortgage market, why rates on the MBS it is buying are 2-3% lower than the mortgage rates being paid by those people buying hosues with mortgages.
still
mortgage deductibility means that at least 100,000 people can be employed in a circle jerk to rip off mortgagees (tax payers.
I won't bring up the fact that the cost of insuring the house and its contents and employment of the mortgagee exceeds the mortgage interest cost anyway.
"I WILL NOT MONETIZE THE DEBT" B.B. ON LIVE TV
"We are not printing money" Berstankee to Congress.
Technically, he isn't. Debt isn't money.
That's all? He'll, let's party!
What’s more interesting – only because no one else has noticed – is the acrobatics regarding the collateral behind issued Federal Reserve notes (the scrip we carry in our pockets).
About 150 years ago, gold was the collateral for issued bank notes; from 1863 (the National Banking Act) to about April of 2009, federal debt instruments replaced gold as this collateral.
During the first week of Dec 2007, $5 billion of this collateral went missing. Judging by “statistical releases”, H4.1, it was a conscious decision by Fed bureaucrats to make this collateral go missing – just to see what havoc it would cause in world markets. It was the same week that began the disappearance of nearly $1 trillion of bank reserves.
By April of 2009, only 53% of “currency in circulation” was collateralized – and no one noticed (outside of those who made it happen).
It was staggering: the world’s reserve currency… and no one noticed it was only half collateralized at one point in time. Imagine what would have happened if the collateral had been gold… and no one had noticed it had gone missing.
Here, you have a chance to be the first in your nation to notice this.
And the sheeple say: "What's a collateral?"
"Is that some kind of new screen pattern in the NFL?"
"Is that a new game to play in the bedroom, on your sides?"
so how does this compare to the ECB balance sheet?
well you have this:
http://www.ecb.int/mopo/implement/omo/html/index.en.html
looks like its around a trillion euros (if you go to "Open Market Operations".
then you have the circle jerk facilities like the EFSF here, amount lent to portugal, ireland and greece (mainly) c. 140 billion euros
http://www.efsf.europa.eu/about/operations/index.htm
i don't lknow where to look for market operations involving the repo'ing of sovereign debt by various countries central banks in exchange for cash, here are the eligibility rules.
http://www.ecb.int/mopo/assets/standards/marketable/html/index.en.html
maybe this has soemthing to do with target2 that settles an average of 2.4 trillion euro a day
http://www.ecb.int/paym/t2/html/index.en.html
so....somewhere between 1.1 trillion and 3.5 trillion depending on how you look at it
Obama, the Senate and Congress can dump all of the debt on the Federal Reserve. Bernanke and the Federal Reserve banksters can make it disappear.
Bubble Bernanke is good hiding crap and lying.
Fraud is the game now and everyone is playing the game.
How much of the debt was actually put on the fed's balance sheet or is some the garbage off-balance sheet?
So, what happens when the FED owns everything?
They cancel all the debt and we live happily ever after.
You are simply owned by the banks, you are a happy slave!
Only $3 Trillion?
Debt is at $16 Trillion.
Unfunded liabilities over $65 Trillion.
Shadow banking deriviatives at over $700 Trillion.
I don't see a problem here; 5 billion or so dead people should fix this.
Lyrics from "Crime of the Century" by Supertramp
"Now they're planning
the crime of the century.
Well, what will it be ?
Read all about
their schemes and adventuring;
Yes, it's well worth the fee.
So roll up and see
how they rape the universe,
how they've gone from bad to worse.
Who are these men
of lust, greed and glory ?
Rip off the masks and let's see.
But that's not right !
Oh no, what's the story ?
Look, there's you and there's me.
That can't be right..."
They TPTB do not care about the deficits and know it does not matter all will see that pretty soon.
I used to think I was doing pretty well....but to have 3 trillion in your account...whew.....I got a ways to go....maybe when I get there I can have a white badge at Davos
3 Trillion = Party Time Bitchez.
Dude! I'm naked snorting champagne with a ribbon tied hard on right now I'm so happy! Long Daughter's tears.....
Where do we get our "3,000,000,000,000!" hats?
Did anybody see Alan Blinders interview recently? He says it should be no big deal when it comes time to unload the Fed's balance sheet back into the market. I'm kinda curious what he may be thinking. Once the digitaly created money is sucked out of the economy thru the sale of securities on the Fed's ledger they will have to "uncreate it" or burn it. It's all one big accounting charade aparently. So the next question would be how do you uncreate 1's and 0's? Guess since it's all on a computer they can pretty much do whatever the hell they want with all the liquidty they will have to draw out of the economy. Wonder what interest rates will do and what the stock market will do this time when the markets hear that giant sucking sound......
The FRBNY will soak up, conjured, liquidity by raising the discount rate. Banks pay more interest to the FRBNY and they take the notes out of circulation.
Money dries up and the big fish eat the little fish. Those over extended fail and those with dry powder get rich in Treasury bonds paying 10%+.
This jacked up market is a suckers bet to lure capital into the market so the FRBNY can pull the rug out from under your feet.
When T-bonds start paying over 10% those over extended start crying.
Move to cash NOW. It might take a year but, you don't want to miss out on high yield Treasury debt.
Bernanke is nothing but a Goldman shill
http://www.penurystreet.com/the-profile-of-ben-bernanke/
Geithner to replace Bernanke.
http://www.bloomberg.com/video/will-timothy-geithner-succeed-ben-bernank...
We are, surely, doomed.
If you believe the prediction that the FED BS will approach 4T this year then you also must believe that ES will go to 1600 and at least some of it's money will find its way into silver/gold shorts. You can't have 1T added to the slop and not see it lift markets. If someone has an alternative narrative, I would love to hear it, because I am the Bear.
Yawm, 120 Billion here or there, it doesn't seem to matter anymore. It just sounds so little.
Father Ben says Gold is not money.
http://www.safehaven.com/article/28522/its-all-in-the-flows
The 2007 Federal Open Market Committee (FOMC) transcripts were released last week. Media reports have concentrated on the Fed's forbearance during the credit meltdown. Implied, but not stated (in what I have read) is the major reason for such nonchalance: The Fed only acknowledges flows, not stocks. This might sound boring. It is also very important to understand.
This approach to central banking has not changed. All of the major central banks use the same framework. The media and Wall Street spend most of their time interpreting the meaning of central-bank talk. Central banks will never mention a growing concern about loan defaults since the academics can always thwart potential catastrophes by modeling preventive flows (e.g., liquidity). The catastrophic financial failure that most of us endured in 2007 and 2008 was not a failure at all, according to central bankers. Their models still conclude there is always a central-banking solution that will prevent any catastrophe. In conclusion: when the current financial bubble topples, there will no forewarning from central bankers, the media, or Wall Street. Given their processes of thinking, they will be more surprised than the average hairdresser.
"Stocks," in this case, does not refer to common stocks, but the accounts and categories in which assets (and their liabilities) accumulate. The Fed, a creature of academia, knows everything. Knowing everything limits policy to sufficient "liquidity": flows. It - to be more precise - its DSGE model, does not care about accumulations: stocks.
The Fed was taken unaware when credit cracked up in the summer of 2007. Unlike many local realtors and carpenters, the FOMC did not understand the connection between flows (bad loans pouring into off-balance sheet Special Investment Vehicles) and stocks (of mushrooming mortgage credit going sour). The Fed presumably noticed pieces of the mortgage machine (subprime lenders, appraisers, Fannie Mae, commercial banks, investment banks, CDOs) even though it did not comprehend the artificiality of this contrived structure. Hence, the Fed missed the connection between the economic expansion of the mid-oughts and its artificial nature. (As we know now, the Fed does not blanch at running an economy by rigging its prices, so, we know now, central banks do not understand an artificial economy is unsustainable.)
All of which is to say the Fed and its FOMC did not know a loss of forward momentum would be followed by an abrupt shift to backward momentum. Again, this has not changed. Despite talk of deleveraging, the U.S. economy has continued to lever up since the non-catastrophe of 2007 and 2008. Total non-financial debt has risen from 240% of GDP in the fourth quarter of 2008 to 249% of GDP after the second quarter of 2012.
The Fed does not understand the artificial credit created by central banks that has flowed since 1971 has coagulated into unsustainable imbalances around the world. The FOMC will be in the caboose when government debt loses its imaginary, "riskless" character (e.g., banks do not need to reserve against most sovereign bonds). As in 2007 and 2008, the stated price of artificially produced assets is illusory, so the assets cannot stand on their own without ever increasing flows to support prices. The flows accumulate in stocks, the artificial composition of which will topple.
I have to agree, the Jew bashing shit must stop. Prejudice is the sign of a weak mind.