"In Feb 2013, Fed Will Buy 75% Of New 30y Treasury Supply"

Tyler Durden's picture


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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Thu, 02/07/2013 - 16:44 | 3224048 Hedgetard55
Hedgetard55's picture

It's all good. No inflation here, nothing to see, move along.

Thu, 02/07/2013 - 16:45 | 3224052 trav777
trav777's picture

Goooooooooo Bernank!!!

Thu, 02/07/2013 - 16:48 | 3224055 TruthInSunshine
TruthInSunshine's picture

The Federal Reserve is going to "own" the United States pretty soon, at this rate.

Hey!....waaaaiiiit a minute.....

Thu, 02/07/2013 - 16:51 | 3224079 redpill
redpill's picture

The Fed should just buy all the debt.  Then we dissolve the Fed and our debt disappears.  Win!

Thu, 02/07/2013 - 16:53 | 3224093 Pladizow
Pladizow's picture

It only makes sence once you can accept the premis that the goal is to destroy the US without a bullet being shot!

Thu, 02/07/2013 - 16:57 | 3224112 Dealer
Dealer's picture

But just in case, the DHS has 1.6 billion rounds on order.

Thu, 02/07/2013 - 16:59 | 3224126 ShankyS
ShankyS's picture

And 7,000 new AR's! Hot damn!

Thu, 02/07/2013 - 17:09 | 3224152 camaro68ss
camaro68ss's picture

but dont worry, its for your safty and the safty of others around you. Now move along back to your FEMA camps

Thu, 02/07/2013 - 17:12 | 3224168 Cheesy Bastard
Cheesy Bastard's picture

Let me make this clear.  Buy guns.  And ammo.  All you can afford.  Now.

Thu, 02/07/2013 - 17:30 | 3224222 moonstears
moonstears's picture

Skip 22LR, rounds are all gone. Shotgun perhaps while 12GA ammo's available, still.

Thu, 02/07/2013 - 18:13 | 3224339 ZerOhead
ZerOhead's picture

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.


Thu, 02/07/2013 - 18:24 | 3224367 fourchan
fourchan's picture

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?

Thu, 02/07/2013 - 19:14 | 3224480 Mr Pink
Mr Pink's picture

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...

Thu, 02/07/2013 - 21:04 | 3224698 medium giraffe
medium giraffe's picture

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.


Thu, 02/07/2013 - 22:55 | 3224945 TruthInSunshine
TruthInSunshine's picture

@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):

“Destroying the Federal Reserve would unleash the biggest wave of organic economic activity, robust real economic growth and true prosperity that Americans would ever experience; America would become the economic superpower to end all economic superpowers” – User TruthinSunshine, who is sarcastically referring to Mr. Nafis as a “dumbass”, assuming his motive was to destroy the US economy, and yes, TruthinSunshine isn’t buying the story or drinking the Kool Aid either.

Thu, 02/07/2013 - 23:52 | 3225078 Boozer
Boozer's picture

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.

Thu, 02/07/2013 - 17:37 | 3224233 ThaBigPerm
ThaBigPerm's picture

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.


Thu, 02/07/2013 - 17:52 | 3224284 Dr. Engali
Dr. Engali's picture

The lock down is accelerating that's for sure.

Thu, 02/07/2013 - 19:05 | 3224455 unrulian
unrulian's picture

you can find it...just look hard

Thu, 02/07/2013 - 17:15 | 3224177 insanelysane
insanelysane's picture

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.

Thu, 02/07/2013 - 17:52 | 3224280 LongBalls
LongBalls's picture

CONSENT. Look it up people.

Thu, 02/07/2013 - 18:01 | 3224305 Orly
Orly's picture

"...in mute, nostril agony, carefully refined, then sealed over."


Fri, 02/08/2013 - 00:56 | 3225191 floydian slip
floydian slip's picture

I touched her thigh and death smiled :)

Thu, 02/07/2013 - 21:57 | 3224840 Bansters-in-my-...
Bansters-in-my- feces's picture

LongBalls..... With an avatar like your last one and your user name,are you have spelled cuntscent correctly...?

Thu, 02/07/2013 - 19:05 | 3224454 unrulian
unrulian's picture

millions more when they start confiscating...they're easy to pry from cold dead hands

Thu, 02/07/2013 - 18:10 | 3224336 forwardho
forwardho's picture

There there, that wasn't so hard to swallow was it?

The truth is most often a bitter elixer.

Thu, 02/07/2013 - 18:32 | 3224378 JR
JR's picture

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.

Thu, 02/07/2013 - 17:11 | 3224144 fomcy
fomcy's picture

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?

Thu, 02/07/2013 - 17:29 | 3224207 TruthInSunshine
TruthInSunshine's picture

It's very helpful that the Fed can buy as many tnotes as it wishes, as it has:


"...a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. [fiat] dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, [the Federal Reserve] can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined [Federal Reserve] can always generate higher spending and hence positive inflation."

Ben Bernanke on inflation, stealing, and robbery

Thu, 02/07/2013 - 18:28 | 3224376 eclectic syncretist
eclectic syncretist's picture

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?



Thu, 02/07/2013 - 19:14 | 3224481 unrulian
unrulian's picture

kind of would make me want to...say...get my gold back...you know.......just in case...


Thu, 02/07/2013 - 21:25 | 3224773 Seer
Seer's picture

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.

Thu, 02/07/2013 - 16:52 | 3224088 LawsofPhysics
LawsofPhysics's picture

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.

Thu, 02/07/2013 - 17:00 | 3224127 Everybodys All ...
Everybodys All American's picture

What about food and water. Seeds to grow the food. Prepare for the worst.

Thu, 02/07/2013 - 17:35 | 3224234 CH1
CH1's picture

Top of the list: Good neighbors, good friends, people you trust.

Thu, 02/07/2013 - 18:04 | 3224317 Orly
Orly's picture

Good fences make good neighbors.


Thu, 02/07/2013 - 19:17 | 3224485 unrulian
unrulian's picture

try and protect that food till harvest...gl

Thu, 02/07/2013 - 22:13 | 3224871 Dieselclam
Dieselclam's picture

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.

Thu, 02/07/2013 - 18:02 | 3224306 Ying-Yang
Ying-Yang's picture

"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

Thu, 02/07/2013 - 17:21 | 3224193 Ruffcut
Ruffcut's picture

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!!!"


Thu, 02/07/2013 - 21:29 | 3224778 Seer
Seer's picture

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.

Thu, 02/07/2013 - 17:23 | 3224203 Liquid Courage
Liquid Courage's picture

Good thing there's an "Office of Debt Management", or things could get ... you know ... out of hand.

Thu, 02/07/2013 - 19:45 | 3224539 bobthehorse
bobthehorse's picture

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.


Thu, 02/07/2013 - 21:35 | 3224789 Seer
Seer's picture

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).

Thu, 02/07/2013 - 16:44 | 3224049 papaswamp
papaswamp's picture

WTF Bitchez?

Thu, 02/07/2013 - 17:06 | 3224142 Dr. Richard Head
Dr. Richard Head's picture

The Federal Reserve - Donkey punching the economy since 1913.

Thu, 02/07/2013 - 16:44 | 3224050 Hedgetard55
Hedgetard55's picture

Ben: "We are NOT monetizing the debt".

Thu, 02/07/2013 - 16:45 | 3224051 Dollar Bill Hiccup
Dollar Bill Hiccup's picture


Who's kidding whom, buy it all!

Thu, 02/07/2013 - 16:48 | 3224054 EmmittFitzhume
EmmittFitzhume's picture

Nobody else will buy that shit(?)

Thu, 02/07/2013 - 16:47 | 3224059 LawsofPhysics
LawsofPhysics's picture

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.

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