Fed Pre-Monetizes 30 Year Bond To Be Reauctioned Off Tomorrow

Tyler Durden's picture

Steven Spielberg gave us Pre-Crime; Ben Bernanke gave us Pre-Monetization. Moments ago, as part of today's concluded $1.464 billion market funding POMO operation, one of the issues purchased by the Fed was the 30 year Treasury identified as CUSIP 912810QZ4.

Why is this CUSIP interesting? Because at 1:00 pm tomorrow, the US Treasury will issue $13 billion in the form of a 29 year 11 month bond reopening. The CUSIP of the issue: 912810QZ4.

Because the only thing better than monetizing the US debt is, well, pre-monetizing the US debt.

The best part: The NY Fed's market-making (literally) desk at Liberty 33 didn't even have to pass 88 MPH.

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Popo's picture

Tyler, FYI

Today's latest from the always entertaining Mr. Farage


yogibear's picture

Liar. He perjured himself. He needs to do some time with Bubba.

JackT's picture

Seems the aution tomorrow is $2m lighter than the pre-monitzation of the today?

BeerBrewer09's picture

Someone please explain what this actually means...

Is this completely new (not built-in) issuance?

Are they just assuming (not very hard to) that the FED is making the purchase at this point?

I am more equal than others's picture

Preposterous predetermined premonetization

Troll Magnet's picture


McMolotov's picture

It's true that he lied, but at least it wasn't about something truly important like steroid use in baseball.

CH1's picture

He perjured himself. He needs to do some time with Bubba.

Right, and where is Jon Corzine these days?

Bankers don't go to jail. The politicians are far too reliant on them.

The system will NOT be fixed.

machineh's picture

The Bernank might want to pre-monetize his retirement, since he's out of his ear when his term ends next January.

You know he's leaving, because the Federal Reserve is poised to lose up to $500 billion as rates rise, leaving it INSOLVENT.

Nice work, Ben! What are you going to destroy as an encore -- civilization?

DeadFred's picture

Hang in there. The reset starts this year.

DavidC's picture

Which is why it WILL break.


SkottFree's picture

No its called executive privilege so it can not be a lie!

God Bless The Virtuous's picture

Yeah Yogi,

right in the big house!

This scumbag has a set of balls on him even Slick Willy envy's!

Bernanke, destroyer of MIDDLE CLASS working Americans!

Rot in hell you prick!

sansnobel's picture

And his european scum counterparts are on record saying " When it's serious, you have to LIE"  This man is nothing more than a common cockroach.    A discredit to the honest Jooos of the world. 

michael_engineer's picture

I suspect that the "when it's serious you have to lie" and the "doing God's work" phrases were both bandied about in the same top level meeting of the WFed and the banking execs when they discussed how to handle the crises/predicaments facing people.

Am I right Ben?

So in summary, it' ok to lie if you think you are doing God's work.

Sounds like the same faulty reasoning many ex spouses use when they pervert justice and betray the truth, themselves, and others.

Religion is supposed to put a break on and curb sociopathic rationales like this. It would seem ironic and hypocritical for religion to be used as a justification/rationale of sociopathic actions.

mick_richfield's picture

When they lie they are indeed doing their god's work.  Or at least -- the work of some divine being.

It's just not the divine being you are thinking of when you say 'God'.


machineh's picture

Their god has cloven hooves.

Pleased to meet ya, hope you guessed my name ...

madbraz's picture

Europeans were taught the "Larry Summers school of thought" that you need to lie, lie, lie to get market confidence up.  This wisdom was probably passed by Geithner, on one of his many trips and phone calls to Europe in 2011.  That's why a great majority of our economic data is now rigged, as Obama has put Robert Rubin puppets in key places such as the Treasury, BLS etc.  No coincidence that economic data went from terrible on October 2012 (gasp, right before elections!) to wonderful shortly thereafter - a miracle!  No wonder Hilda Solis "suddenly" left the BLS to be replaced by a new shill...


Do you believe for a minute the GDP and industrial production numbers in Europe (not to mention the German "confidence" indexes, what a UMich joke!) when car sales in France and Germany now are 10% below year ago levels?  I guess the shyster "investors" JPM, GS et all do... 

insanelysane's picture

How did they know on March 7th that they would own this specific ID that they didn't buy until March 13th?  </sarc>

the iD's picture

your jacket is now dry!

Bay of Pigs's picture

No doubt Gordo. All we can do is smile at the absurdity of the situation.


drbill's picture

When you can't print money fast enough today, you simply print it yesterday as well as today. The possibilities are truly mind blowing!

TheAlchemist's picture

I'll gladly trade you a bond today for fiat on Tuesday...

optimator's picture

The money isn't printed, they wire money they don't even have.

pan's picture

How currency is made, bitchez!

Spastica Rex's picture

Philip K. Dick gave us "pre-crime." Stephen Spielberg gave us 1941.

bigwavedave's picture

You got me by 2 seconds :-) fucking wank Speilberg couldn't lick Dick's balls

Tyler Durden's picture

"A seasonally-adjusted Philip K. Dick = Steven Spielberg"


bigwavedave's picture

Gotta love a guy who admits he is wrong eh?

MisterMousePotato's picture

If that girl got a back scratcher, she wouldn't have to scratch her back on a tree.

DaveyJones's picture

Do Drones Dream of Complacent Sheep?

Orly's picture

Good one.

Let's not forget that Minority Report was a pretty good flick.  I think Mr. Mapother's best acting job to date.


tarsubil's picture

Funny thing. Deckard and I turned out to be replicants.

Orly's picture

More human than human is our motto...

medium giraffe's picture

On a long enough timeline, everything turns to kipple.

Mercury's picture

Who came up with this idea Jamie Dimon?  What are the chances that the WI seller covers higher? I'm guessing zero.

Let's see...printing dilutive money to buy non-existent debt for an indefinite time period to manipulate the price of money downward before the first leg of the trade causes the opposite outcome.

I think this is the synthetic equivalent of being short the USA on a when-issued basis but I have to check the math...

eclectic syncretist's picture

Jamie Crimin, Lloyd Blankheart, Ben Schlong Bernanke, who gives a fuck who came up with the idea.  Jail the motherfucker for crimes against humanity.

Cognitive Dissonance's picture

"Fed Pre-Monetizes 30 Year Bond To Be Reauctioned Off Tomorrow"

Pre-Crime a la Minority Report?

<Besides Tyler, it's already March 14th somewhere in the world.....right?>

Everybodys All American's picture

When will the bond vigilantes decide enough is enough?

hedgeless_horseman's picture



Extinct.  They all drowned in the great (currency) flood.

bigwavedave's picture

Tyler. Please issue a retraction. Philip K. Dick gave us Pre-Crime not some sugar coated piss-ass movie director.

machineh's picture

Schpielberg gave us Lincoln, who gave us greenbacks.

Wheel in the sky keeps on turnin' ...

Cdad's picture

The only thing left to be revealed in this never ending financial crime wave, this full on assault against the free market by Ben Bernanke, is...as you have suggested many times Tyler...for the Federal Reserve to announce the S&P closing levels at the opening bell.

This is a complete financial market wasteland.  Thank you Ben Bernanke, Washington DC, and criminal Wall Street syndicate.