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"In Feb 2013, Fed Will Buy 75% Of New 30y Treasury Supply"
We urge readers to read the bolded section below, which comes straight from this quariter's Treasury Borrowing Advisory Committee (i.e., Primary Dealers) presentation to the Treasury Department, and explain, with a straight face, just how the Fed will ever be able to not only stop monetizing debt and injecting $85 billion of flow into the stock market, but actually sell any holdings.
Federal Reserve Holdings (1 of 2)
As of Dec 26, 2012 the Federal Reserve System Open Market Account (SOMA) held approximately $300 billion in 21+ year US Treasury debt
- SOMA holds 41% of the 30y Treasury bonds issued since 2009
- In Feb 2013, Fed will buy 75% of new 30y Treasury supply
Twist and QE operations have significantly lengthened the WAM of the Fed’s SOMA portfolio
The Fed currently owns 29% of all marketable 10yr Equivalents outstanding
Full TBAC presentation:
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It's all good. No inflation here, nothing to see, move along.
Goooooooooo Bernank!!!
The Federal Reserve is going to "own" the United States pretty soon, at this rate.
Hey!....waaaaiiiit a minute.....
The Fed should just buy all the debt. Then we dissolve the Fed and our debt disappears. Win!
It only makes sence once you can accept the premis that the goal is to destroy the US without a bullet being shot!
But just in case, the DHS has 1.6 billion rounds on order.
And 7,000 new AR's! Hot damn!
but dont worry, its for your safty and the safty of others around you. Now move along back to your FEMA camps
Let me make this clear. Buy guns. And ammo. All you can afford. Now.
Skip 22LR, rounds are all gone. Shotgun perhaps while 12GA ammo's available, still.
By Jessica Dye
NEW YORK | Thu Feb 7, 2013 1:40pm EST
(Reuters) - A Bangladeshi man pleaded guilty on Thursday to attempting to use a weapon of mass destruction in what authorities called a plot to blow up the New York Federal Reserve Bank. He faces up to life in prison under a plea agreement. The Federal Reserve is now considering to move it's headquarters to Tel Aviv, Israel, where superior security can thwart these joint Al Qaeda/ FBI plots. As an added bonus it will serve to decrease the ability of Washington to influence it's policy decisions to transfer all known wealth to banksters and G-ds Chosen People.
http://www.reuters.com/article/2013/02/07/us-usa-bomb-plea-idUSBRE9160EG...
At what point of saddling the us tax payer with 20 trillion+ in debt
and every nonperforming asset the fed's banks created, become unAmerican?
I saw that article on Yahoo earlier. I made a comment saying " he would have been doing americans a favor".
Umm...yeah...the sheep didn't like that much...
Link? Have to see this... :)
Edit: Not to worry, found the story, will have a browse through. I see from the first few comments that they're a bloodthirsty lot though. Jeez, be careful in there Mr. Pink. Groupthink fear turns to groupthink hatred on a dime in Yahooland it seems.
"Kill him slowly"
"Lifetime of prison rape"
So quick to advocate torture without a second thought.
Crivvens!
@Mr. Pink:
Entrapping Alphabet Federal Law Enforcement Nabs “Terrorist"As a commenter on ZeroHedge notes of the incident (NOTE: to avoid black helicopters outside my window and to prevent any implications by Darth Vader like dressed law enforcement, I do not condone bombing or violence against others, that’s the job of the insane military industrial complex and their constant warmongering and drone strikes):
Scored 500 22lr's - $35 - 1 box per customer.
Also sniffed out sole remaining box of .223 at another store yesterday - $550! for 1k
Same ammo I bought for $350 one month ago. Insane.
Too late. For anything remotely contemporary, that is. You can still get some milsurp stuff, but even Mosins are getting thin and have about doubled in price. Yugo M24/47 Mauser a good alternative; a bit more expensive but much higher quality and accuracy. Still see a few tins of milsurp 7.62x54r and Privi 8mm Mauser still in stock. .303 British still about as well. Plus, you can still (for now) reload that stuff. You can't even reload 9mm, .40, .223/5.56 these days (primers all gone as are most bullets).
Some modern bolt actions still in stock too, and as long as it's not .308/.223/22LR, etc, you can still feed it. Shotguns hit and miss, but still can be found if you're not too picky. Revolvers too.
SAVE YOUR BRASS!!!
The lock down is accelerating that's for sure.
you can find it...just look hard
I love how my tax dollars are used to buy assault rifles for pissed off citizens in Egypt and Libya and Syria and...... But the same country arming citizens all around the world are working to stop their citizens from using their own money to buy weapons.
CONSENT. Look it up people.
"...in mute, nostril agony, carefully refined, then sealed over."
-Jimbo
I touched her thigh and death smiled :)
LongBalls..... With an avatar like your last one and your user name,are you have spelled cuntscent correctly...?
millions more when they start confiscating...they're easy to pry from cold dead hands
There there, that wasn't so hard to swallow was it?
The truth is most often a bitter elixer.
Exactly Pladizow. Fallen to date in America: housing, savings, jobs, traditional company pensions, private sector advancements for the working man, monetary access to a higher education, the finest health care system worldwide, national borders, individual opportunity, world peace… Next: liberty.
It’s one of two things; either these bankers are intentionally trying to close off American sovereignty in terms of taking control of the entire economy, or second, they are in a complete crisis situation whereby they’ve gone so far they can’t turn back. I rather believe that it doesn’t end with them in control; I don’t see that they’re going to be able to produce an economy that offers opportunity to a majority of American citizens.. If they are unable to produce a working economy, then they will eventually lose politically control.
Pladizow, are they so stupid that they don’t understand people who work for a living, who hope and dream for a better future, the entrepreneurs and the individuals and families and property owners and patriots; have they only learned just to take? They may think they can make this work without firing a bullet by holding ownership of everything - the industries and the buying power and the government - forcing people to work for less and less, forcing people to take an increasingly lower standard of living. You have to admit there have been a lot of educated people throughout the centuries who thought they could make communism and/or state control work.
Could these people think, therefore, that they can create a situation in America whereby they can have dictatorial control and force once-free willing Americans to work to support it?
If so, I can tell them it will work out much differently. People will tear up their paper and their ownership claims and their deeds of trusts and hang them from lamp posts – particularly the people who have tasted liberty.
What "Exit"??? There is no Exit. FED is the only Elephant left in the room. To whom they are supposed to unload that bunch of crap they are buying now? To Aliens? Exit strategy my A$$! QE FOREVER! And 90%"Analysts" on CNBC believe that more they print/buy lower GOLD should drop, What those guys are smoking?
It's very helpful that the Fed can buy as many tnotes as it wishes, as it has:
Ben Bernanke on inflation, stealing, and robbery
Hey Ben, you left out a word. It should have been positive DEBT inflation,.....you FRN-humping Post-Hole Digging, Pizza-Hut Delivery gas-bagging moron. How in the fucking hell is inflation going to help if no one has a job or spare cash to spend, you chrome-domed sackless piece of maggot shit?
http://www.youtube.com/watch?v=XvHFqcYN3nc
kind of would make me want to...say...get my gold back...you know.......just in case...
cough...germany...cough
This is what I've been saying for a long time now. I think that at the very least we should explore how this could happen and what would be the consequences of it if it were to occur. Yes, I'm serious.
For the tenant of the corporation of the united states it will soon be impossible to pay back any debt on physical assets (by design) when the currency dies. I think many are waiting (hoping) that someone from the Fed shows up. When fraud is the status quo, possession is the law.
The only complementary assets now are gold and lead.
What about food and water. Seeds to grow the food. Prepare for the worst.
Top of the list: Good neighbors, good friends, people you trust.
Good fences make good neighbors.
-Frost
try and protect that food till harvest...gl
I have long believed that the treasuries purchased by the fed are backed by the gold in Fort Knox and what is stored in the NY Fed where posession is 100% of the law.
Gold backed currency. What a concept.
"In Feb 2013, Fed Will Buy 75% Of New 30y Treasury Supply"
Fucking Unbelievable a short time ago!
And to remind us.......
In total, $1.25 trillion in agency MBS were purchased between January 2009 and March 2010
So fucking what?
The fedsterbitchezz have displayed they can buy this shit all day, all month and til someone says they can't.
WHo's stopping them?
ANd who in the fuck is going to buy this bag o shit, if they don't? Mighty fucking mouse?
"here I cum to save my day!!!"
The repercussions are that folks exporting to the US will DEMAND to be paid in something other than USD. Care to discuss what that might be?
Oil/energy is going to become far less affordable for the average U.S. citizen.
Good thing there's an "Office of Debt Management", or things could get ... you know ... out of hand.
If you print a trillion dollars and throw it in a black hole of debt, how much money has actually been created?
That's why we aren't seeing inflation.
There's no velocity.
http://www.angrysinner.blogspot.kr/2013/02/thursday_7.html
Inflation will be sent back to the US from abroad.
It's ultimately about affordability. I could state that price inflation is coming and is amplified for those who lose jobs; enough of this occurs and we'll see a complete breakdown in confidence in the USD (enter hyperinflation).
WTF Bitchez?
The Federal Reserve - Donkey punching the economy since 1913.
Ben: "We are NOT monetizing the debt".
Slackers!
Who's kidding whom, buy it all!
Nobody else will buy that shit(?)
Massive capital mis-allocation and mal-investment. Amazing that the world continues to let these "entitled" few continue to collect interest on bogus debt. Boom motherfuckers.
That's why they call it a "Liquidity Trap". Very difficult to stop once you start. Also known as "addiction to printing money."
When the only money you have is debt you can't pay off your debt because you would have no money.
Except for gold and silver.
Yup! It was ALWAYS a road to hell. And now that the growth music has stopped there will be a huge shortage of chairs available.
How odd. I thought everything was smooth sailing and hunky doorey.
Take that BOND VIGILANTES! Go Fuck Yourselves! lololololol
Sincerely,
Twat Bernank
A Spring time of recovery. Can we get Paul Voulker back on the job?
Think he'd take it?
Wanna bet?
Call us the boot-strap nation.
Okay so let me see... I am going to print Bank of Racer notes and then I will buy most of them myself..
Hmmmmm.....
????????
Uh, no I will do no such thing because it is bad and very stupid
And you'd be arrested for fraud if you tried it.
So stop calling it "debt".
Don't call it taxes either, rather call it revenue. Don't call it spending, rather call it an investment. Such is the case under the Marxist mob serving Obama. Welcome to the world of make believe America. I already know how this ends.
Don't call it debt... call it a buying opportunity.
I think it's interesting that the latest QE has the Fed monetizing both Treasury's and MBS. Like two peas in a pod. That should tell you something about the new risk profile of Treasury's. And the Fed is paying up through the nose for both.
the show must go on.
There should be a law forbidding the FED from buying more than 20% of TB's.... This is just an extension of executive and congressional profligate theft.
There was, it was changed sometime before Glass-Stegall. Can't remember the legislation, for me, the loss of Glass Stegall was the sign to buy any and all physical I could.
"there should be a law against the fed...'
fixed it for ya...
There is..
It's called the constitution.
what is this 'constitution' you speaketh of...? is it 2-ply or 4-ply paper...?
fuck the fed.
thomas lee from jpm was on cnbc and he said we are in a bull market and that ppl should go long stocks. this fucker does not even mention how its 100 percent due to the fed, prob leading ppl to believe economy is improving.
fuck u lee, hope u and ur fradulant bank get hammered during next crash
At least the French know how to put their balls to the wall (potentially literal in this case).
No offense to you guys, but you´re fuckin sheeple.
Seems the French need to conscript foundry workers into their military, they'd be a damn force to be reckoned with, having these ballsy fuckers in uniform.
lol, they do have the Foreign legion.
http://answers.yahoo.com/question/index?qid=20110512132314AA0kUCo
Keep downvoting me mates, that will make you feel better. Truly taking a stand you armchair warriors!
what's a 'maginot line got to do with it?
i want a moar... built through it?!
Seem like I´m done for now. Pissed you lot off enough for the moment it seems. t(´-´t)
Too easy tho, way too easy.
Btw, keep printing, that will solve it. Almost as much as crying here about the problem for the past 5 years without doing jack shit about it does, or whining about your gold not hitting $1700+
It's very hard to take you seriously with those french dance moves.
It´s Rick Astley bitch.
Rick Astley - Never Gonna Give You Up - YouTube
Know your classics.
Rick Astley is your idea of classics? You're fckin gayer than I thought.
Just fuck off will ya.
Btw, your avi makes you look like a fuckin pedo.
What goes around comes around. Least mine knows how to dance.
Stop the avi kiddy abuse.
That's my son when he was 5. He already had bigger balls than you, frenchie.
Why even defend yourself?
Got something to hide?
Spare me the details plx you perv.
http://www.youtube.com/watch?v=FONN-0uoTHI
Boy, that escalated quickly!
if you meet five assholes in one day, you're probably the asshole.
those frenchies are DAMN smart. instead of taking over the factory and kicking the owners out, lets blow it up instead. real smart those frenchies....
And please tell me, what did you Americans do so far?
Least Europeans know how to send their governments a proper message.
You Americans are a joke, and pissing you off tonight is fuckin hilarious XD
Here´s a nice Russian song to cheer you bitches up a bit :
http://www.youtube.com/watch?v=sTSA_sWGM44
Trololo!!! Eduard Khil FTW! That 1976 vid is simply priceless.
Even though Eduard passed away last year, he will now live on forever.
Least someone got a sense of humor, phew!
please... have sum moar hollanddaise'd sauce on your kraut'd sandwich, won't U`
How´s your pink slime burger tasting tonight?
Even if you guys wanted to raise a proper insurrection, most of you are too fat to be able to climb out of your Mom sponsored mancave without getting a cardiac arrest.
HoaX !
Speaking of burgers, what the Devil are the Irish doing: selling Polish horse meat to John Bull in Tescos throughout the kingdom ? Quite the controversy...
http://www.dailymotion.com/video/x1mdgg_prince-controversy_music#.URRElB...
So the US this month will buy 75% of our own long term debt, Japan apparently has to buy almost 100% of its debt...nobody except hedge funds wants anything but Southern European debt, Russia is selling US debt and that leaves China...WTF happens if they actually stop buying everyone's debt? How in God's name do you stop this carousel? In the past, everyone buying eachother's debt at least gave the illusion of the debt being desired and having value. No more. Pretty clear no one wants to buy anything with dates beyond 3 years and therefore no one gets any yield...man is this screwed up.
Hedge funds buying European debt should tell you something about the profitability and chance of getting paid back. Do they buy US debt?
China stopped buying yours, and they´re swimming in dollars cuz of all the iCrap they make. They buying PM´s now.
And for some nice watching if you haven´t yet cuz it´s somewhat old:
Overdraft
http://www.youtube.com/watch?v=MqW628w_z4w
The truth hurts.
I think, as Hugh Hendry pointed out, China is stuck having to purchase US debt because if they stop they are stabbing themselves in the back as the RMB will appreciate, they won't be able to export anything and they will kill their manufacturing base. This might change when their growing middle class becomes self-sustaining but they aren't there just yet.
Right, it´s totally not like they´re planning to run the worlds reserve currency for the next decade or so.
They're just on board with the globalist plan, but they won't be running anything.
Keep dreaming "kiddo".
How in God's name do you stop this carousel?
"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
just so i can laugh at the fixation of this market, i hope they bring the s&p positive for the day. it would be too funny not to laugh
Just half the usual pomo today so It'll have to finish a little red.
What's the big deal. My wife pays off my credit card with her credit card checks. Works well for us. I can't see any problems in the future coming up.
Tell me this: Why do they ever have to sell anything? They don't.
Because someday something big will break. On the other hand, if Ben bails California, all bets are off.
To the moon, Alice.
Correct - they do not have to sell.
They do not have to worry about "losing" money or wiping out their "equity" -- these concepts are foreign to an entity that can create money out of thin air at will. They live in a limitless world.
That's really the right question - SO WHAT? So the Fed buys 70% of every government debt instrument down to 5yrs or 3yrs or eventually 1yr. Fed is the market. SO WHAT?
So long as there is massive unemployment via continuing offshoring, lessening demand, technology, automation, robotization, etc. the lack of any wage inflation coupled w/ ever slowing GDP will allow Fed to continue saying "inflation is low". Such stagflationary forces at work here and globally due to oversupply, overpopulation, overindebtedness...so what stops the Fed and CB's from playing this co-ordinated game indefinitely???
The case for PM's is quite clear but not so sure the end is near for the Fed, for the dollar, for the lying sons of bitchs in charge???
Limits? Maybe when a cereal box is so small you can slip it into your shirt pocket a few sheeple might start grab a clue.
Quality (Quantity) Dilution ... there's yer Limit.
When they are done QE'ing, they will create new security with a fancy name (U.S. Patriot Secure Trust Fund?), the Fed will transfer all of their over-price, low interest rate bonds into it and the federal government / primary dealers will stuff a bunch of it down the throat of pension funds / individuals in exchange for any cash that sitting around in those accounts. Then interest rates go up, the value of U.S. Patriot Secure Trust Fund goes down and that stage of the ongoing theft will be complete. What other sceanario is there? How can Fed allow interest rates to go up (thereby tanking value of the bonds they hold) before they unload them. I'd be interested in knowing others' scenarios.
My scenario: ZIRP forever until the US defaults, breaks apart into smaller countries, or the revolution begins.
Once that happens, debt is zeroed out and we start over.
How about this one.
Controlled deflation just like Japan with the fed pouring money into the bucket just fast enough to keep the water level going down slowly, as all the debt in the system sucks up the money.
Inflation in hard assets as cash finds a home, with a special boost for anything oil intensive, and the rest desperately trying to deleverage. ( with mixed success).
Massive growth of the state as government spending becomes one of the only source of those much needed USD.
No exit plan for the fed ( it owns most stuff eventually)
This is not a unicorns and rainbows ending I know, but if left UNCHALLENGED I'm afraid that's what we might be stuck with...
Excellent call.
War bonds.
There's still plenty of anti-commie folks out there (and a trunk load of propaganda and linked memories) such that they can conjure up the ultimate villain - China. Suspect the Japanese vs. Chinese stuff going on right now is kind of the warm-up to get people thinking about "China Bad!"
So we can has some too?
Might as well get on with it. Someone make an app that tells you what % of America's total assets is held on the Fed balance sheet.
I want to know when the money printers own more than 10% of my country outright.
Well, it could be worse...
?
?LOOOOOOOOOOOOL
I love it...the Office of Debt Mgmt...they must be some busy mother fuckers at that office.
Tyler(s) asked:
"...explain, with a straight face, just how the Fed will ever be able to not only stop monetizing debt and injecting $85 billion of flow into the stock market, but actually sell any holdings."
Dear Taxpayer,
The Treasury Department is pleased to tell you that your entire (IRA/401K/Pension) has been converted into a blend of 1, 10, and 30 year Treasury Patriot Bonds backed by the full faith and credit of the U.S. Government.
You will have access to the FULL amount of your investment in our great nation when you reach age 70 or die (whichever comes first).
Be aware that if you die any proceeds to spouse, children, or designated recipients will be taxed at 59% and any capital gains since this conversion occurred at a rate of 25%.
The FED will set the Treasury Patriot Bond rates, but be assured that it will be at least equal to the Revised Chained Cost of Living Allowance (RC-COLA) of Social Security.
Withdrawals from your funds can only be taken in apportionment with your life expectancy. For example, if you are a male aged 70 and average life expectancy is 86, you may withdraw 1/16th of your holdings per year and only in monthly installments and no lump sum withdrawals are allowed.
In times of national crisis, your withdrawals my revert to the 1/32nd's or 1/64th's rule of apportionment, however, we do not foresee this occurring at the present time.
We hope you appreciate the necessity of this conversion, and thank you in advance for your patriotism and commitment to restore the nation and support liberty.
Regards,
Jon Corzine
Treasury Secretary
I've heard that before. My question is - How will they raid the retirement funds? Executive order?
"Dear Mr. RebelDevil,
What 'raid' of retirement funds do you speak of?
It is your money, the Treasury Department is merely safeguarding it from the vagaries of the markets and the uncertainties of our times by converting it to Treasury Patriot Bonds.
For laws pertaining to this conversion please refer to the Patriot Act, the National Defense Authorization Act (N.D.A.A.), KELO vs. City of New London, and Executive Order 6102.
Regards,
The Honorable Jon Corzine
Department of the Treasury"
+100, Jon Corzine as Treasury Secretary was a real nice touch LOL!
Excellent! Good stuff.
By then, the Treasury Secretary might as well be called the Wealth Confiscation Czar.
It's always some nice sounding name, "confiscation" isn't nice... Try: Wealth Protection Czar. Remember, it's ALL about "protecting" us! Big Brother is just the bomb!
+ 1 That post needs to go in the archives. Well done.
That is the most accurate and best forward-looking statement I've ever seen.
Anyone else Fed up?
Every day, all day.
FED gains/losses are nominal, not real. If they print a trillion bucks and buy bonds with it, they then lose 50% in value, who really loses? Not the FED, they have 500 billion more than they started with. It is the currency debasement that pays for all this bullshit.
doesn't the fed's charter expire this month?
that is what i have been wondering as well ??????
The fed does not have a charter that end. I repeat the fed does not have a charter that ends. When the federal reserve was enacted it was a 20 year charter. In 1927 The original Charter was amended To read "To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law." This means the 20 years never ran out it should have ran out in 1933, this is due to the fact that the first two Federal banks of the United states ran out due to charters not being renewed.
until forfeiture of franchise for violation of law.
So, is it still illegal to destroy U.S. currency.
I was under the impression there was a law to that effect, no?
Well we have seen the largest pillaging of wealth happen before our very eyes since 2008 and nobody held accountable, so my guess is that laws don't apply at this point in time... except for to you and me.
Indeed. One of Obama's PERSONAL Executive Orders (# 1337, code-named NANNY-NANNY-BOO-BOO) declares, "I'm rubber, and you're glue - what bounces off of me, will stick to you. Sooo ... sucks to be you, Bitchez!!"
It is highly, highly unfortunate when basic words that form one's language inexplicably lose their meaning. Like "law". "Law" used to mean something. "Breaking the law" used to get a person in trouble.
And the punch line?? This 'Obama' -- before becoming Chief Apologist of the USA -- was a practicing attorney and a University of Chicago Law School lecturer that taught constitutional law. Boggles. The. Mind.
Apparently you're a youngster. This shit has been going on for a LONG time. The Puppet Masters have existed since the hierarchical structure came to be...
Let me see.
Im gonna make a product that has value and sell it. But then because it has so much value Im gonna buy 75% of it. Which makes me wonder? Why am I gonna sell the 75% I want back or don't want to sell to begin with. Is this analgous to a product recall? Is my product defective? Am I just floating some sales to see if their is a market?
I'M SO FUCKING CONFUSED?????? I don't understand, it's non-sensical, I see your 75% and raise you Chinas holdings??? Help meeeeeeeeeeeeeeeeee Jesus........... wheres Kai and his axe? Come on Toto we ain't in somewhere no more.
You could buy your own product back if you could print your own money, otherwise you are correct, it is nonsensical. As it is, someone IS buying the crap treasuries and MBS, and it ain't the FED, it is the holders of dollars. They are the true buyers, through purchasing power debasement.
So I want to know who the other 25% shitheads are.
Is that not a criminal act...?
See...crime pays.
I feel sorry for the idiots buying the other 25%...what the hell are they thinking
"Gee! So I'll buy this crap paper today, and then tomorrow, I'll flip it to my buddies at the Fed, who will buy it for a higher price, and I will be RICH RICH RICH!"
That's what they're thinking.
Regarding the 25%... Sheeples think?
Unfortunately, I might still be around in 30 years when those ass wipes mature.
Hotel California.......All exits have been locked
they stab it with their steely knives but they just can't kill the beast.
Trivia: The word "steely" was a reference to another classic '70s group, Steely Dan.
For those who didn't already know.
True?
The esoteric information available here at ZH is vast.
I actually did know that. Apparently the 2 bands didn't care much for one another. I myself always preferred Steely Dan
More Trivia: DID YOU KNOW?? Being fans of Beat Generation literature, Fagen and Becker named the band after "Steely Dan III from Yokohama", a strap-on dildo referred to in the William S. Burroughs novel Naked Lunch.
It's a snake eating it's own tail. Can't last forever.
With infinite paper fiat one can purchase paper infinitely.
Which leads to the question, What idiot(s) is buying the other 25%?
LOL