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Fed Buys Back 30 Year Bond Auctioned Off Last Thursday

Tyler Durden's picture


Earmuffs time for those people (all utterly clueless three or so of them) that the Fed does not monetize the US debt.

From last Thursday, the the US Treasury so generously issued $16 billion in 30 year bond (Cusip: QZ4)...

... to today's POMO, when the Fed so generously monetized some $39 million of the same CUSIP, after the obligatory settlementin the hands of the Primary Dealers of course.

...with about $13 billion more to of this specific CUSIP left to go. From the US Treasury:


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Tue, 02/19/2013 - 12:25 | 3256310 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

We will not monetize the debt.

- Ben S. Bernanke

Tue, 02/19/2013 - 12:36 | 3256364 Desert Rat
Desert Rat's picture

yep, this is the world we live in folks! mindless, moronic, hope-n-change sheep...

Tue, 02/19/2013 - 12:36 | 3256370 Manthong
Manthong's picture

Just think of what the velocity of money is going to be when it breaks loose of the closed Fed cyclotron..

Tue, 02/19/2013 - 12:49 | 3256430 whotookmyalias
whotookmyalias's picture

Gubbmint will take care of it. They want to make (their) our lives better.

Tue, 02/19/2013 - 12:57 | 3256462 Richard Chesler
Richard Chesler's picture

A "thriving" middle class.


Tue, 02/19/2013 - 13:05 | 3256491 ACP
ACP's picture

Vince Vaughn to Bernanke: "Oh, I'm the asshole??"

Tue, 02/19/2013 - 13:23 | 3256549 Popo
Popo's picture

Ben Bernanke, guilty of crimes against the State and the American People.   This is as clear as day.   What exactly is the penalty for robbing every man, woman and child in the nation?   

Tue, 02/19/2013 - 14:26 | 3256756 TruthInSunshine
TruthInSunshine's picture

Actually, Bernanke to the citizenry: "Earmuffs."

Tue, 02/19/2013 - 16:57 | 3257386 Swarmee
Swarmee's picture

According to the fines and sentences handed down to LIBOR manipulators that would be exactly.... Zero. Zero penalties.

According to the Bernanke stating blank-face under oath that he would not monetize the debt, then doing exactly that less than a year later? Zero penalties.

Despite this affecting every citizen at some level just watch, no one person would be allowed standing to initiate a suit of any sort. And since ZH has shown much of the current flow goes direct to EU banks? Any suit with merit will eventually be quashed for "national security" reasons if not long before it even reaches that level of scrutiny.

Me, cynical? Nah, realist. :-(

Tue, 02/19/2013 - 12:50 | 3256437 Desert Rat
Desert Rat's picture

at the time the Dolla Menu becomes the Fiddy Dolla Menu

Tue, 02/19/2013 - 13:17 | 3256523 fuu
fuu's picture

And you will still be eating pink horse slime.

Tue, 02/19/2013 - 14:31 | 3256781 youngman
youngman's picture

You will want to be able to afford pink horse slime.....

Tue, 02/19/2013 - 12:51 | 3256445 azzhatter
azzhatter's picture

Ben can solve that in 15 minutes. I heard him say it. He wouldn't lie

Tue, 02/19/2013 - 13:48 | 3256614 Gordon_Gekko
Gordon_Gekko's picture

Its about goddamn time the nature did its survival of the fittest thing.

Tue, 02/19/2013 - 15:22 | 3256967 DaveyJones
DaveyJones's picture

wow, it's been a while

Ps: you were right

Tue, 02/19/2013 - 12:41 | 3256376 TruthInSunshine
TruthInSunshine's picture

Do any of you clueless motherfuckers who constantly claim that the Democratic AND Republican Parties aren't an illusion of choice, when in reality, they're BOTH owned by the exact same entities to do the exact SAME large-scale things, care to defend your position with anything more than talking point tripe?

I'll wait with bated breath to see Bernanke & the elders at the Fed asked a single question about this by any "Republican."

Gay marriage, bitches! Oh noes!  Republicans generally oppose it and Democrats generally support it. It'll be the death of the nation! (and other carefully selected, yet generally meaningless, social wedge issues).

Tue, 02/19/2013 - 12:52 | 3256436 Bananamerican
Bananamerican's picture

hey TIS, maybe your kenyan daddy Obama will "hope and change" your liberullz diaper for you cuz you didn't build that!-typical ZH Foxtard

(sorry, couldn't resist)


Tue, 02/19/2013 - 12:52 | 3256449 Chupacabra-322
Chupacabra-322's picture

@ TruthInSunshine, Spot on.  May I add the following:

They want our guns because they know the game is about up. The music is about to stop and the dollar is going to be worthless. When the dollar’s true value is realized everybody who had most of their wealth in paper assets are going to be pretty pissed off to say the least and looking for blood and vengeance to say the most.
Thats why our government agencies are stocking up on ammo and want to get all the guns and ammo they can out of our hands. When the system falls apart and the stores are bare because the transportation of goods has collapsed everybody will know without a doubt why they were trying to shut down the second ammendment.
They don’t care about our lives. They just want to protect their own lives since they know they are the criminals that got us into this situation with their bankster overlords.

Tue, 02/19/2013 - 13:37 | 3256591 Bastiat
Bastiat's picture

Yes and they are getting frantic about it.

Tue, 02/19/2013 - 12:57 | 3256466 kaiserhoff
kaiserhoff's picture

You might check immigration policy.  The War on White People is not being conducted by Republicans.


Tue, 02/19/2013 - 13:08 | 3256503 GlobalCtzn
GlobalCtzn's picture

Yeah right, Bush and the GOP did a lot to stem that tide...............

Tue, 02/19/2013 - 13:53 | 3256525 TruthInSunshine
TruthInSunshine's picture

Yeah, whatever "war on white people" you see is no doubt related to issues over immigration and such, with Republican-favored H1B visas, an aggressive Republican program to expand their share of the hispanic voting base (code word for cave to whatever is "wanted" to secure the votes), etc., JUST like the Democrat fucktards.

Republifucks and Demofucks, indistinguishable in 99.5% of what they DO, and MAYBE 35% of what they SAY.


(This is not a commentary on the merit of gearing political issues to the concerns of American CITIZENS of hispanic ancestry whatsoever, but to demonstrate the larger point that both parties are comprised of knob gobbling whores of the exact same variety, working for the exact same "owners")

Tue, 02/19/2013 - 14:34 | 3256795 1100-TACTICAL-12
1100-TACTICAL-12's picture

It will all come to an end soon enough. Myself i use each day we are still above water to hone my system that will hopefully pull me & mine through the coming shitstorm. As me & my wife were discussing this weekend , nothing is certin anymore. Hopefully someday the globalist bankster scum get what they have coming.

Tue, 02/19/2013 - 14:51 | 3256863 Chupacabra-322
Chupacabra-322's picture
These Criminal Banksters own the “government”. The “government” does not tell them what to do, they tell the “government” what to do. They are the reason there is war everywhere, why the “government” ruling over us attacks nations all over the planet committing murder and terrorism against them and treason against us every day. I can’t imagine what sort of force will have to come to the fore to stop these Criminals, but they must be stopped.
The “government” is a criminal organization. They rule with fire power. They are a gang that numbers in many thousands. Their goons are everywhere. America in under an occupation of criminals and will continue to be until they are at last forcibly removed from our land. Their economic Ponzi scheme is about to collapse and the main mechanism of their control will be gone. Their central bank, the Fed Reserve, (see fifth Plank Communist Manifesto) has run its course. A 100 year conspiracy is coming to fruition and the deed is done. Just one big problem for them, 200,000,000 guns in the hands of free Americans who hate their guts, and are hell bent of restoring this Republic to Constitutional legitimacy. Whatever cruelty, whatever ruthlessness the criminal “government” uses we must exercise even more so. Don’t forget, they want us dead. No quarter for traitors! No quarter for the enemy!
Tue, 02/19/2013 - 13:10 | 3256508 gmrpeabody
gmrpeabody's picture

Oh contraire...

Tue, 02/19/2013 - 13:19 | 3256531 woolly mammoth
woolly mammoth's picture

Another wedge issue. The Republican war against Ron Paul was a war against Liberty.

Tue, 02/19/2013 - 12:30 | 3256337 Jayda1850
Jayda1850's picture

When things get serious, you have to lie.

Some European asshole. Fuck you Junker.

Tue, 02/19/2013 - 13:12 | 3256512 God Bless The V...
God Bless The Virtuous's picture

Put that scumbag Bernanke in jail for perjury with that even bigger scumbag Corzine!

Then demand to have the U.S.D.A. DEFUNDED for indoctrination!

Tue, 02/19/2013 - 14:58 | 3256893 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

fuck you bernanke you lying shill

Tue, 02/19/2013 - 12:25 | 3256312 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

"Na na na na na na na I can't hear you." Okay Mr Bernanke you can take your hands off your ears now.

Tue, 02/19/2013 - 12:28 | 3256325 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Banking is an art.

- Ben S. Bernanke

Tue, 02/19/2013 - 12:40 | 3256350 JustObserving
JustObserving's picture

Banking is an art of fraud

-The Truth

Tue, 02/19/2013 - 12:38 | 3256372 DaveyJones
DaveyJones's picture

 abstract, impressionist, finger painting or playdough?

Tue, 02/19/2013 - 12:26 | 3256317 odatruf
odatruf's picture

So a trillion dollar coin minted by the Treasury was an absurdity, but if we do it in $85 billion dollars intervals and through the Fed, then it's "getting to work".  Yeah, I see it now.


Tue, 02/19/2013 - 12:29 | 3256335 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold is not money.

- Ben S. Bernanke

Tue, 02/19/2013 - 12:32 | 3256346 kralizec
kralizec's picture

Doing the opposite never looked so good.

Tue, 02/19/2013 - 12:44 | 3256391 DaveyJones
DaveyJones's picture

he sure is obsessed with something "irrelevant"

that's the thing about these high level asswipes. If they had to duke it out in the real criminal world, where real things matter, they'd be dead in a week.

Tue, 02/19/2013 - 13:23 | 3256551 overmedicatedun...
overmedicatedundersexed's picture

if you vote and are registered D or R, and are fed (cough cough) up then get off your fat ass and change your voter registration to a third party or indie..if enough voters do this it will send a message..but then no stay on your fat asses and post your drivel.

Tue, 02/19/2013 - 12:26 | 3256319 LasVegasDave
LasVegasDave's picture

this is a riskless transaction for the primary dealers so why isnt there public outcry about ripping off the taxpayers?

Never mind, Ill just answer my own question:  LOLOLOLOLOLOLOL

Tue, 02/19/2013 - 12:26 | 3256321 Super Broccoli
Super Broccoli's picture

who do they buy this crap from ? Soros ?

Tue, 02/19/2013 - 12:38 | 3256331 mayhem_korner
mayhem_korner's picture



The relevant thing is that they are co-signing the taxpayers' names to it.

[Edit: they are signing the taxpayers' great-great-grandchildren's names to it]

Tue, 02/19/2013 - 13:22 | 3256545 Raymond Reason
Raymond Reason's picture

What about the debt ceiling?  So these 30 yr bonds are to replace bonds that came to maturity??

Tue, 02/19/2013 - 12:26 | 3256322 mayhem_korner
mayhem_korner's picture



75% of the 30-Yr February issuance?  Looks like desperation to keep the long-end of the yield curve down...

(what's to become of the "housing recovery" when mortgage rates go up 75 bps in the next few months...?)

Tue, 02/19/2013 - 12:43 | 3256402 kaiserhoff
kaiserhoff's picture

I've been all over central Florida checking out property for the last two weeks.

Billboards on both coasts advertise 2.99% commercial loans or home equity loans.

Idiots on steroids.

Tue, 02/19/2013 - 14:05 | 3256667 HomeBrewPrepper
HomeBrewPrepper's picture

I just refied to a 15 yr 2.75%

It's almost like free money with real inflation being well above said 2.75%

Tue, 02/19/2013 - 19:06 | 3257718 Dan Conway
Dan Conway's picture

I just refied for 30 years.  I plan on paying back my mortgage with obama/benron bucks.  The present value of those last 15 years will be the equivalent of a Kalikfornian teachers pension - worthless!

Tue, 02/19/2013 - 12:28 | 3256328 Cognitive Dissonance
Cognitive Dissonance's picture

Who says the auto makers can be the only one to channel stuff?

Tue, 02/19/2013 - 12:28 | 3256330 Inthemix96
Inthemix96's picture

This is turning sureal.

How much more of this blatant bullshit can this lot pull off before it comes crashing down?

I am almost lost for words??

Tue, 02/19/2013 - 12:31 | 3256342 tarsubil
tarsubil's picture

The sad thing is I can see this lasting for years. Just enjoy today, keep stacking, and accept what is most likely going to happen.

Tue, 02/19/2013 - 12:32 | 3256345 Melson Nandela
Melson Nandela's picture

Basil Fawlty: "I could have this conversation for the rest of my life"

Manuel ;"Eventually, at the end..."

There´s your answer.

Tue, 02/19/2013 - 12:34 | 3256356 Cognitive Dissonance
Cognitive Dissonance's picture

At the risk of being called a broken record.......we ain't seen nuttin' yet. Desperate men will resort to desperate measures, making the last few years look tame by comparison.

The key is to manipulate you and I into begging for exactly what they want to do in the first place.

Tue, 02/19/2013 - 12:38 | 3256380 Dr. Richard Head
Dr. Richard Head's picture

my daughter hasa been begging for a pony.  I find it hard to believe the Fed wants to give us a pony. 

Tue, 02/19/2013 - 12:48 | 3256422 Cognitive Dissonance
Cognitive Dissonance's picture

The Fed wants to give you the back end product of the pony they will keep (and eventually slaughter).

Would you like one scoop or two? Better yet take three. The pony runnith over.

Tue, 02/19/2013 - 12:59 | 3256471 Ying-Yang
Ying-Yang's picture

as in a little pony meat in your burger?

Fri, 02/22/2013 - 04:49 | 3266313 matrix2012
matrix2012's picture


Pooh!  They make dangerous food!

Horse meat is more dangerous than one thinks.

Consider the supply chain. In 2011, almost 140,000 horses from the United States were sent to slaughterhouses in Canada and Mexico. (The last American horse slaughterhouse closed in 2007.) Many of the horses that landed in these across-the-border abattoirs were thoroughbreds from the U.S. horse racing industry. Others came from prolific quarter horse breeders, who send horses into racing, ranching, and rodeos. Racing in particular is a controversial business marked by overbreeding, early racehorse retirement, and EXTENSIVE DRUG USE. (The New York Times has laid bare the harrowing evidence this year in an excellent series called “Breakdown: Death and Disarray at America’s Racetracks.”) Indeed, many racehorses essentially become PHARMACEUTICAL DUMPING GROUNDS throughout their artificially stimulated, sedated, and numbed lives. The CHEMICALS that course through the blood and lodge in the flesh of many thoroughbreds and quarter horses might ease their pain and treat their diseases, but they also make these animals distinctly UNFIT for a GoogaMooga sandwich.

Watch out the performance-enhancing drugs such as Phenylbutazone, known as PBZ or simply 'bute'... they are toxic for humans.


U.K. 'Horseburger' Scandal: Did the Meat Originate in the U.S.? | Maryn McKenna


Food Trade Too Complex to Track Food Safety | Maryn McKenna


Tue, 02/19/2013 - 12:50 | 3256439 john39
john39's picture

a world (fiat) currency... firmly in the claws of the banker scum.

Tue, 02/19/2013 - 12:52 | 3256442 DaveyJones
DaveyJones's picture

you said a mouthful. Ironic since it starves so many

Do you ever wonder CD, how in the hell...

It's just the tools and the scale isn't it? Mankind has never changed. And never will.

Doesn't this mean at one point, it breaks

God knows if the scale of destruction is record breaking

so too will be the reaction

Gee, I feel better

Tue, 02/19/2013 - 12:35 | 3256363 Quinvarius
Quinvarius's picture

Nominally they can maintain it with two outcomes; A completely Fkd economy and a gold moonshot.  They can rig their paper vs other paper all day, but have no control over the physical reality  It is like playing farmville all day harvesting imaginary food, but never stocking your fridge and dying of starvation.

Tue, 02/19/2013 - 12:41 | 3256398 Confundido
Confundido's picture

Not so fast Quinvarius...not so fast...They do not control the physical (i.e. the monetary base of the currency called gold), but they do control its credit multiplier (the leverage on the monetary base). And this control seems to be unchallenged....

Tue, 02/19/2013 - 12:51 | 3256443 ParkAveFlasher
ParkAveFlasher's picture

You won't die of starvation if you fill your stomach with your own shit and repeat when hungry.  - Ben Bernanke

Tue, 02/19/2013 - 12:30 | 3256338 Dr. Engali
Dr. Engali's picture

What's a few billion digits amongst friends? The only thing that matters is that brutal sequester is prevented from happening......brutal.

Tue, 02/19/2013 - 12:34 | 3256355 kralizec
kralizec's picture

Brutal, yeah.

Draconian even.


Tue, 02/19/2013 - 12:32 | 3256347 fuu
fuu's picture

POMO, it's like an EBT card for banksters.

Tue, 02/19/2013 - 12:38 | 3256374 Fredo Corleone
Fredo Corleone's picture


Simple, yet accurate metaphor.

Tue, 02/19/2013 - 12:38 | 3256379 No Euros please...
No Euros please we're British's picture

Don't know about EBT but they certainly seem to have plenty of Get Out of Jail Free cards. Guess Obummer is the Joker?

Tue, 02/19/2013 - 12:47 | 3256419 kaiserhoff
kaiserhoff's picture

Huge sign on a convenience store:


  NOW -  EBT

Even with minimal English, the shit comes out the same.

Tue, 02/19/2013 - 13:36 | 3256589 Threeggg
Threeggg's picture

Did someone mention EBT ?

Here is the EBT anthem:

Tue, 02/19/2013 - 12:34 | 3256354 NoWayJose
NoWayJose's picture

It takes a lot of these transactions to hand out enough money in order to temporarily keep gold from rising.

Tue, 02/19/2013 - 12:34 | 3256360 PaperBear
PaperBear's picture

30 year vs 3 working days - madness.

Tue, 02/19/2013 - 12:36 | 3256367 SmoothCoolSmoke
SmoothCoolSmoke's picture

Let's see....

ZH:  Cars - bad!  Housing  - bad!  Freight - bad!  Fed - bad!

Yet.....  SP +8

Sorry, ZH is looking more and more like the crazy guy on the street corner proclaiming "The end is near!"

Again, sorry.... but that's how it looks.



Tue, 02/19/2013 - 12:41 | 3256389 nope-1004
nope-1004's picture

Proof that the Fed is controlling the market.  Thanks for confirming.


Tue, 02/19/2013 - 12:41 | 3256390 bnbdnb
bnbdnb's picture

Penis still works in fat chicks too.

Tue, 02/19/2013 - 13:39 | 3256597 Bastiat
Bastiat's picture

Maybe, maybe not.

Tue, 02/19/2013 - 14:34 | 3256794 McMolotov
McMolotov's picture

Yep, close your eyes and play make-believe. You have to do the same thing to think "all is well" and "things are getting better" and "the market isn't being manipulated."

Tue, 02/19/2013 - 12:46 | 3256415 mayhem_korner
mayhem_korner's picture



Hopium zealots are in a constant euphoric lather because the equity markets are approaching new highs.  As was pointed out last week, when the Dow was last this high in October 2007, the price of gold was around $700.  Here's a deeper-dive tale of the "recovery" tape:

Silver: Oct. 2007=$13, Today=$30

Gold:  Oct 2007=$760, Today=$1,620 (or whatever they hammer it to...)

Reported Unemployment:  Oct 2007=4.7%, Today=7.9%

Case-Shiller Home Index: Oct 2007=190.9, Today=144.9

New Home Sales:  2007=774K, 2012=367K

Housing Units Built:  2007=1,500K, 2012=651K

Fed Reserve Balance Sheet: Oct 2007=$873B, Today=$3.11T

Food Stamp Recipients: Dec 2007=28.7M, Today=48.2M

Federal Spending, Annual Rate:  2007=$2.7T, Today=$3.6T

Fed Tax Revenues, Annual:  2007=$2.5T, Today=$2.4T

Retail Gasoline Price:  2007=$2.84/gal, 2012=$3.68/gal

Money Supply:  Oct 2007=$851.6B, Today=$2,760.7B

Personal Bankruptcies: 2007=801K (75% up from 2006), 2012=1,245K

Foreclosures: 2007=405k (40% up from 2006), 2012=742K


Don't be fooled by the 'recovery' meme, and be cautious about entering the pre-slaughter sheep pen that is the equity markets.

Tue, 02/19/2013 - 13:30 | 3256575 Alpha Monkey
Alpha Monkey's picture

I'm stealing this to show others.

Tue, 02/19/2013 - 12:47 | 3256420 Jayda1850
Jayda1850's picture

Lets see...

CNBC and MSM in 2007. housing-good, stocks-good, freight-good, fed-good.

How did that work out cocksucker?


Tue, 02/19/2013 - 12:48 | 3256426 Al Huxley
Al Huxley's picture

What are you paying for gas now? Is it in the neighborhood of the prices in mid-2008 (when oil was about $25 higher)?  How's your grocery bill lately?  Noticed any change in prices and/or package sizes?  Been to a restaurant lately?  How are the prices compared to last year (or even 6 months ago)?  Yes, of course, everything's fine - S&P's up 8 points, sound the all clear.  And luckily for us, food and energy aren't part of the CPI, otherwise we might be experiencing some inflation.



Tue, 02/19/2013 - 12:57 | 3256463 kralizec
kralizec's picture

There you go again itemizing all the destruction surrounding you!

+1 is all I can give ya.

Tue, 02/19/2013 - 14:31 | 3256782 Agent P
Agent P's picture

You know what will fix this?  Increasing the minimum wage to $9/hr.

Tue, 02/19/2013 - 12:48 | 3256427 Hedgetard55
Hedgetard55's picture

"Judge not the appearance, judge righteous judgement".

Tue, 02/19/2013 - 13:01 | 3256459 fuu
fuu's picture

Your faux concern is touching, here's your earmuffs.

Tue, 02/19/2013 - 13:36 | 3256588 Vooter
Vooter's picture

"Yet.....  SP +8"

Really? Says who?

Tue, 02/19/2013 - 12:38 | 3256373 LawsofPhysics
LawsofPhysics's picture

Must...   keep... the... ten... year... yeild... at... or... below... 2.0%...

Tue, 02/19/2013 - 12:40 | 3256386 Dr. Richard Head
Dr. Richard Head's picture

The Fed keeps pushing the yield down like a tightly coiled spring.  It will be quite interesting to watch it release.

Tue, 02/19/2013 - 13:01 | 3256477 DaveyJones
DaveyJones's picture

remember those old garage springs...on the two car 400 pound wood doors?

Tue, 02/19/2013 - 12:39 | 3256382 Hedgetard55
Hedgetard55's picture

Well, he is not REALLY monetizing the debt, because he will eventually sell them back and destroy the money previously created. Right Ben?

Tue, 02/19/2013 - 12:54 | 3256453 kaiserhoff
kaiserhoff's picture

Right?  Exactly so.  Right after Hell freezes over.

Tue, 02/19/2013 - 13:00 | 3256473 Going Loco
Going Loco's picture

"Well, he is not REALLY monetizing the debt, because he will eventually sell them back and destroy the money previously created. Right Ben?"

But what happens if nobody wants to buy? 

What happens if it really is nobody, as in N.O.B.O.D.Y. wants to buy? At any price?

Tue, 02/19/2013 - 13:04 | 3256486 DaveyJones
DaveyJones's picture

History has draped that play. The final act makes Lady MacBeth smile 

Tue, 02/19/2013 - 12:43 | 3256399 hooligan2009
hooligan2009's picture

so what has been the cumulative profit transferred from the government to the banks/primary dealers since the inception of QE? 

is it 1.7 trillion times 18 years duration times 2 basis points, so c. $6 billion?

nice money if you can get it, given it's a guaranteed profit with no risk

i could use 1% of that.$60 million ..or even not being greedy and all..0.1% of that or $6 million..or 0.01% for $600,000

how much have fat banksters bonuses been in the treasury dealing rooms of JPM GS MS DB and HSBC in the last five years? 

let guess..around $6 billion amonst what...30 dealers? so twenty million a piece.

sounds about right..

fuck you US government, in all its guises

Tue, 02/19/2013 - 12:42 | 3256400 morning_glory
morning_glory's picture

I have had enough of the propaganda on this site.

I am going to Bloomberg to find the truth!

Tue, 02/19/2013 - 12:44 | 3256403 Al Huxley
Al Huxley's picture

This system they cooked up where 'the market has to vet the prices' - eg the PDs have to buy the debt instead of the Fed just buying it straight from Treasury is sure working out great as a safety valve to prevent debt monetization and enforce market discipline on the govt.  Man, those Fed founders really thought of EVERYTHING!

Tue, 02/19/2013 - 12:46 | 3256417 Sutton
Sutton's picture

He's caught in his own web.

And our society, and us all, will die agonizing deaths, because of him.

Tue, 02/19/2013 - 12:46 | 3256418 whoknoz
whoknoz's picture

as they say.."looking at all the horse shit, there must be a pony in there somewhere..."

Tue, 02/19/2013 - 12:50 | 3256433 Al Huxley
Al Huxley's picture

I'd never heard that one, but I'll definitely remember it for the future.

Tue, 02/19/2013 - 12:47 | 3256425 Tsar Pointless
Tsar Pointless's picture

Gotta hand it to those jerks.

They really know how to form a circle.

Tue, 02/19/2013 - 12:51 | 3256440 Grinder74
Grinder74's picture

Wait:  circle...jerks...what are you trying to say?

Tue, 02/19/2013 - 13:13 | 3256513 THX 1178
THX 1178's picture

Gotta give it to those fucks... they really know how to cluster together.

Tue, 02/19/2013 - 14:25 | 3256751 optimator
optimator's picture

And one of these days they'll all be clustered together at El Al Airline boarding line, with their one way tickets in hand.  Binny will be first in line with a toupee and cleanly shaven. 

Tue, 02/19/2013 - 12:51 | 3256431 Freewheelin Franklin
Freewheelin Franklin's picture

With all of the currency crises this country has seen, you think we might have learned something by now.


I hear people say, "we need to take the money out of politics". Actually, no. We need to take the politics out of money.

Tue, 02/19/2013 - 12:57 | 3256461 A82EBA
A82EBA's picture

its like by the time we're old enough to understand whats going on we're outnumbered by those who dont get it

Tue, 02/19/2013 - 12:50 | 3256434 Grinder74
Grinder74's picture

Small Business: This is illegal!! SEC gonna rape you like it did us!

Government: Nah, nothing going on here.

Sovereign individual: What was Obama's golf score this weekend?

Tue, 02/19/2013 - 12:50 | 3256435 philosophers bone
philosophers bone's picture

Sorry if there is an obvious answer to these questions, but:

1.  Do we know what the Fed is actually issuing when it buys these bonds?  Do we know that it's Federal Reserve Notes (ie. U.S. dollars) or could it be something else (ie. a subordinated promissory note or low level equity in the Fed which will never be repaid) so that the currency supply is not actually increasing?  Obviously the taxpayer would be seriously fucked over in that scenario.

2.  Do we know if as a condition of the Fed purchases whether there is a collateral agreement whereby the Fed has the right to "put" the bond back and, if so, at what price? 

Tue, 02/19/2013 - 12:53 | 3256451 Catullus
Catullus's picture

It's straight up Open Market Operation. They take the bonds, pay in newly printed cash, end of story.

There's no swap, no repo, no PIK, no equity. Straight up cash.

Tue, 02/19/2013 - 13:02 | 3256468 francis_sawyer
francis_sawyer's picture

Wheeee!... more joobux... I'm going to have to get me one of those confetti cannons...

Tue, 02/19/2013 - 13:00 | 3256470 hooligan2009
hooligan2009's picture

but they do run a massive repo and reverse repo market for this skilled in rehypothecated tr-partite repo stuff.

Tue, 02/19/2013 - 13:18 | 3256528 Catullus
Catullus's picture

Their FX Swap activity is rather interesting too

Tue, 02/19/2013 - 18:50 | 3257680 Phoenix_Rising
Phoenix_Rising's picture

The last vestige of a desperate nation....


Tue, 02/19/2013 - 12:57 | 3256460 Yen Cross
Yen Cross's picture

 This shit is beyond comical. I can see it already. "Dominos Pizza" is spinning platinum coins in the middle of the night, so they can get the Obama>care writeoff!

Tue, 02/19/2013 - 12:59 | 3256467 buzzsaw99
buzzsaw99's picture

In other news gold down again. :boomers laugh at stackers:


...time to put more PMs on the CC. lulz lulz lulz

Tue, 02/19/2013 - 13:10 | 3256505 Yen Cross
Yen Cross's picture

 I'm buying the dip buzz. Stacking some more xag this week. Also adding to my cable positions. The 10 handle move is in, and the currency wars are heating up!

Tue, 02/19/2013 - 13:13 | 3256515 fuu
fuu's picture

I am not sure you should stack XML Accessibility Guidelines.

Tue, 02/19/2013 - 13:42 | 3256598 Threeggg
Threeggg's picture

Wait for the price to come to you. Whats the hurry ?

Next Tuesday the 26th is options expiry on the Comex.

Tue, 02/19/2013 - 12:59 | 3256472 monopoly
monopoly's picture

All correct guys, but so far no one seems to care. Sad but true.

Tue, 02/19/2013 - 13:19 | 3256534 yogibear
yogibear's picture

A Greece in the making.

More printing, Food Stamps,  Free cell phones and bailouts.

Tue, 02/19/2013 - 14:36 | 3256809 Bunga Bunga
Bunga Bunga's picture

Please end that farce, FED should just become a primary dealer.

Tue, 02/19/2013 - 14:41 | 3256827 MFLTucson
MFLTucson's picture

Good job 100% track record of deception!

Tue, 02/19/2013 - 14:59 | 3256899 q99x2
q99x2's picture

What state should secessionists move to: Texas, New Hampshire? Got to get rid of the FED somehow.

Tue, 02/19/2013 - 15:21 | 3256964 HeatMiser
HeatMiser's picture

Not NH Massholes own nh its just a matter of time before NH changes its name to taxachusetts.

Tue, 02/19/2013 - 15:31 | 3257014 JohnGaltsChild
JohnGaltsChild's picture

Not to worry. The central gamblers have everything under control.

Tue, 02/19/2013 - 16:05 | 3257159 helping_friendl...
helping_friendly_book's picture

The US should default on the debt, including the FRBNY, remove the gold from the FRBNY vault and put it in Fort Knox. 

Back the US Treasury note with silver at 10:1 leverage. Sell as much gold as necessary to purchase enough silver to make currency stable. 

Fuck the Jew bankers on Wall Street. Remove Manhatten from the Union and make them support their own infrastructure.

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