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Chart Of The Day: The Fed Now Owns One Third Of The Entire US Bond Market
The most important chart that nobody at the Fed seems to pay any attention to, and certainly none of the economists who urge the Fed to accelerate its monetization of Treasury paper, is shown below: it shows the Fed's total holdings of the entire bond market expressed in 10 Year equivalents (because as a reminder to the Krugmans and Bullards of the world a 3 Year is not the same as a 30 Year). As we, and the TBAC, have been pounding the table over the past year (here, here and here as a sample), the amount of securities that the Fed can absorb without crushing the liquidity in the "deepest" bond market in the world is rapidly declining, and specifically now that the Fed has refused to taper, it is absorbing over 0.3% of all Ten Year Equivalents, also known as "High Quality Collateral", from the private sector every week. The total number as per the most recent weekly update is now a whopping 33.18%, up from 32.85% the week before. Or, said otherwise, the Fed now owns a third of the entire US bond market.
At this pace, assuming Janet Yellen keeps delaying the taper again and again over fears of how "tighter" financial conditions would get, even as gross US bond issuance declines in line with the decline in deficit funding needs, the Fed will own just shy of half the entire bond market on December 31, 2014... and all of it some time in 2018.
Source: Stone McCarthy
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But the dummies on this site still like that bank's paper.
Soooooo, how do you exit a market when you are the market?
Ask Jamie Dimon. It's a bit expensive. Good thing the Fed can self-recapitalize or they might have a tough time of it.
That chart looks like China's gold holdings.
Yeah, but China can't print more gold. We can always print more Treasury debt.
The headline on the inter-office emails among the FOMC members reads a bit different. Goes something like this: "Fed still doesn't own 67% of all outstanding bonds."
Ones perception is ones reality.
This won't end well.
Anyone else think Bruno Iksil's IG9 episode was a kind of Gemini Project for the taper?
The deficit is expected to contract significantly over the next 18 months.
The further the Fed goes into USG the more everyone will prepare to short.
Guys,
This simply means that the US Gov has not issued enough debt. This is an easily solvable problem.
Not to worry, the PBOC has a plan to change that shortage of US govt. debt.
Plenty of demand caused by not rolling debt over as it falls due.
How long until the 'market' catches on ?
In Rome, the Pope takes a swipe at trickle down economics...
"...In this context, some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, expresses a crude and naïve trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system. Meanwhile, the excluded are still waiting..."
Frankie, they are waiting in line at WallyWorld..
http://www.vatican.va/holy_father/francesco/apost_exhortations/documents/papa-francesco_esortazione-ap_20131124_evangelii-gaudium_en.pdf
Trickle down economics does not work because by the time the money reaches the poor it has changed hands several times and the ensuing inflation neutralises the new purchasing power before it gets very far down the chain.
We need a red graph or i'm gonna declaire war.
Well, I just got a couple of gold fillings (really).
One of these days I will be worth more than a third of the bond market.
My rich fantasy life:
Selectively default on the third that is owned by da goberment. Justice sues Treasury. Then Treasury turns the IRS on each Justice appointee and employee. Invite Hulk Hogan to host the event. Buy popcorn and sit back and enjoy. Theater for everyone - drama, comedy, tragedy.
Pfftwppt!?
Exactly! +1
Bullish?
The first spend of newly created money is always the sweetest. Hence the popularity of the scam.
I can't believe MDB posted that comment. I'm completely flabberghasted! Did you just just get out of the Kool-Aid rehab. for Krugmanomic addiction?
Look more closely at the name: "MillionDollarBogus", NOT "MillionDollarBonus".
Bah!- he got me!
Yeah- MillionDollarBOGUS is the real deal. MillionDollarBonus is the bullshitter.
I still can't imagine why Bogus keeps his screen name. That's gotta get old pretty quick.
Take a closer look at that nick.
Thanks fellas. I was caught up in the "rational exuberance" of a down day in the markets.
I think everyone reading the comment did a double-take.
This Pope is a certifiable retard statist who wouldn't know a free market economy from a virgin, runs a empire worth billions of looted nazi gold and probably only job he ever had was trading Father Goodknob blow jobs for hersey bars.
But he does not read the Koran so he has got that going for him.
Indeed. Even though the deficit is decreasing, the liabilities and interest must still be funded and serviced. Good luck to a disfunctional CONgress in that effort when rates return to their historical averages. Will not happen, the Fed will buy 100%, then 150%, then 300% etc. etc.
Nothing changes until the supply line break in earnest. My guess is that by that time a family of four with a annual income of $500,000 will be eligible for SNAP. Go find a survivor of the great depression and let them know that a family of four with a $50,000 income is now eligible for SNAP. Math is a bitch, "this will not end well" is an understatement.
The cost of servicing the debt is the same as it was in 2006/2007 even though the national debt has ballooned from $8trillion to $17trillion.
When rates tick up, the deficit will gape forcing the Fed to continue QE.
The snake will eat its tail. And when people realise that the Fed has lost control it will all collapse.
Steady as she goes....
(productive physical assets, cash/coin, and a dependable tribe...)
WWIII is already underway, the shooting simply has not started yet.
Productive physical assets?
Would this qualify?
Times are tough.
They lost control years ago. Or rather, they passed the point of no return.
"no good deed goes unpunished." the Government must first blame itself for what happened in 2008 (monetize the debt, pray the dollar doesn't collapse, double top the commodity bubble and rake in the dough on the MBS's through Fannie and Fred...check) then raise taxes (check) then deny the benefit (check..so to speak.) As Clint Eastwood famously said "NOW we dance." yes...the spread is widening...close to the widest in US financial history actually...but the point of "effecting" that is for the spread to start paying for the Government...in my view. there's suppose to be a ton of inflation by my calculation(s) now...or at least a mild inflation that is containable at a certain level...yet interest rates never responded "rationally" to my thesis...while every other asset class sure did. So i took a flier after compounding 30% for four years..."in wonderment" i guess (or just plain curiosity.) Did the Fed disabuse me of my notion that "they really want that gap to be the widest ever"? Nope. In feel like the financial equivalent of "Worf" on Star Trek..."the Next Generation" this year. Just..."out of place" on the Bridge...http://www.youtube.com/watch?v=edflm7Hh3hs but still on the Bridge for some reason.
Show me one place where the deficit is decreasing? Just one.
The O'bummer's are taking fewer trips overseas
Forget the Fed buying for a minute. Who's selling and why?
They're selling because the Fed is clearly paying above (otherwise) market rates. That makes sense. So, the sellers aren't putting their money back into Treasuries. It's going into other asset classes. So, the Fed's action is really pumping the stock market. They way I see it, the Fed won't stop buying Treasuries until the insiders are well prepared to profit from their short positions in the secondary asset classes.
But the insiders will know exactly when that will happen or won't happen...so they get it going both ways. All the chatter from the Fed about considering to taper is just window dressing to keep the 99.9% thinking they're actually considering it, while the .01% continue to profit off their treasury liquidation and secondary asset class appreciations.
United States Treasury Secretary, Jacob Joseph "Jack" Lew, the middle guy in this photo, is the one selling all those treasuries to The Fed, mostly because of deficit spending.
A Jew borrowing all of that money, from a bank controlled by other jews. I wonder what Jehovah thinks of this.
Look out before they Francis Sawyer your ass - although they did give you the ability to post pictures, so maybe you are juiced in.
h_h, the entire argument between you and VD has been deleted apparently. Along with other choice comments from Bay of Pigs and others. Just a heads up.
That's easy! You clone your self, sell to the other you, repeat ad infinitum and ad nauseam
"At this pace, assuming Janet Yellen keeps delaying the taper"....
...forget the taper, what happens when she DOUBLES QE? FED owns ALL treasury market by 2015?
Actually, they only need to own 51% to effectively control the bond market. Their end game is much closer than most people realize.
If the fed increases qe...the up 15% open will be the top...it will be an epic reversal
which would essentially mean it no longer exists
"Soooooo, how do you exit a market when you are the market?"
It's like a financial version of "the stranger". Sit on your left hand until it goes numb, then have your right hand sell while your left hand buys.
It's just like you're selling to someone else!
And without "allowing" the rate to rise which kills off your exit strategy? Insanity, this will take 5 years to taper to stop the growth and then what??..Does the Fed hold to maturity?? I guess so. But without them sopping up everything no one else really wants, you have to create a crisis elsewhere so that these bonds look REALLY REALLY good and creates "flight to safety" to sop up demand
Nah, I'm off paper... I take pennies now and laser print the bitcoin emblem onto them. Shit is going to da moon, brah!
not that i know of... but i heard some fools are falling for even crazier scam, invisible coins.
Pretty much everything that exists is invisible. What is your point? That human's five senses are limited and so you should limit yourself to them?
i bet bitcoin creators are laughing their asses off when they read your comments :) the grin on their faces must be priceless. I mean to run a scam and transfer wealth and at the same time having victims adore, praise and idolize you, that must be the whole new level of thievery.
Warren Buffett level trolling
Actually my OP had nothing to do with Bitcoin. I was just mentioning the general observation that most stackers continue to drive up dollars, passively transact in dollars and are very much their own worst enemy.
Difference being stackers have something physical to show for it even in if the price is suppressed. You have some digits somewhere in a "wallet"(LOL), and maybe a dick in your hand whilst doing a circle jerk with spyker and a few other trolls.
you hang out here hitting refresh to be able to say "FIRST!"? Fascinating indeed, along with your fan club of two or three up arrows, one of which probably belongs to you.
How the fuck do you get the first comment on every thread lately?
fonestar = Tyler?
Fonestar is highly liquid.
At what point do we switch from "It's flow that matters" to "it's stock that matters".
My guess is sometime ago.
If the supply is limited or fixed, you look at the stock. If it's not, you look at the flow.
Is the supply of freshly minted Treasuries (debt) limited? Depends how you answer that question which one you look at.
Me? I'm in the "don't worry, they'll make more of it" camp.
I'm lookin at stock my man. They are gaining control by the day. They will own it all soon enough. The more the own the more limited any hissy fit becomes.
Funny to note that all of the Fed's % increases are coming from domestic holders of Treasury debt...while foreign % holdings continue rising. Hmmm. In other words, Fed will eventually remove all domestically held Treasury holdings and replace with "risk" assets...
Domestic total Treasury holdings still bout what they were in '00...while Fed and Foreigners exploding...any hypothesis where this is going???
The fed will have full control of the monetary spigot and will eliminate the treasury bond market. That is where it is going.
I don't remember hearing that on the BlowHorn?
:/
Fonz - I know that makes sense but the #'s are saying something different...what is happening is the Fed exchanging dollars for Treasury's w/ pensions, insurers, and the like domestic holders of Treasury debt while the Fed and "foreign" interests can't get enough...if the data is to be believed, then none of the Fed's buying is coming from foreigners and all that is happening is the entire removal of domestic Treasury holders...why??? Under what scenario does it make sense that the Fed and Foreigners buy up all Treasury debt and jointly (not Fed alone) own it outright??
agree, it is idiotic. It is not supposed to make sense, it's just a "kill the safe haven" and go long risk idea that was probably fed to the mouth of the Fed by the primary dealers.
It may have the opposite effect. While the paper value of risk assets has risen by some $5 trillion since QEver on the heels of only $1 trillion in bond purchases, when the flow reverses and the safe haven trade is bid (at some point it will) yields may fall to "recorder" lower levels.
The 30 yr yield touched 2.5% during the 2008 crisis. It touched 2.5% again in 2012 as operation twist was doing nothing to kill the safe haven trade (as QEs do). Absent QEver, where does it go?
Down. A lot.
Hambone here is the short answer. all this is being executed according to a grand design of buying all the bonds and then creating two entirely separate streams of money velocity. One for government and one for the financial system.
Fonz - if you mean they plan to "retire" all bond debt I kind of get it but I'm just curious what the holders are going to get in return for it??? Guess the Fed and foreign CB's will get some sort of golden parachute...
Hambone here is a longer answer from someone that I speak to that used to be on here and still should be.
"really what the Fed has achieved here is like when humans first discovered they could dam up rivers. The Fed has engineered the worlds economic dam with locks and everything. We all thought you could never a tame a river like the markets but the Fed has done it- its a perfect analogy: the primary dealers are the bricks in the dam wall and the hydroelectric mechanism inside the wall is their dividend machine, that little current generated as the water sluices through them at a pace the Fed decides (the 0.25% interest on every dollar printed and not allowed to be released into the economy, in perpetuity) is their reward for holding the line. And for the rest of us, we get exactly as much water as the Fed thinks we can handle without risking flooding, which so far so good as long as commodities rigging holds up, which is fine as long as OPEC is comfortable. The trick of course is to get your water from as close to the Dam as possible before everyone has a
chance to piss in it...
just to add:
Ham-bone is correct btw about buying up the domestic market while foreigners keep buying. That is the foreginers way of buying into the first sip from the money spigot. That is their buy-in to enjoy the fruits of this game. That is why China has so many treasuries and that is what allows it to basically peg its currency to the dollar (because as an exporter it would otherwise have too much money coming home). So China being a primary dealer and all the other countries buying treasuries to a smaller degree are buying a share in the Fed's monopsony. The biggest beneficiary is of course the US gov, which will essentially be able to "borrow" at virtually no interest, followed by the PD's who get the second sip from the spigot.
Let me give you a different take. Fed has signalled the domestics to get out and suck all of the foreign money in. Then taper and let the rate hit 6 or so on the 10... The Chinks are stuck.... hold to maturity at nothing or sell at a huge loss..... The simple answer is usually the correct one.
@ Ham-bone I remember your post a few weeks back, Re; foreign buying of U.S. bonds. It was eye opening and showed the global central bank collusion in vivid detail. I don't know who's right or wrong. I've great respect for both Fonz and Yourself.
I'm still scratching my head on that short term note auction that was canceled earlier today.
@ Yen - Fonz or yourself are far more likely to understand where this is going...Fonz's explanation of the buying makes about as much sense as anything...but does lead to a small concern ultimately as the back-ups in actual liquid behind those dams becomes immense and because everybody knows that liquid will never be released (because it would cause the flood of all floods) they all build in the flood zone...ensuring far too much pressure will ultimately be put on the dam(s)...moral hazard writ large. Human nature and group think coupling to ensure an unbalanced system will ultimately (don't know when???) collapse.
Hell, the commodity space being disconnected from the liquidity house is ultimately so self defeating...lowering exploration, lowering technological drivers to use these resources more efficiently, driving prices down while available resource is likewise made more scarce. The ultimate snap back from this sort of policy is so economically and societally negative vs. a simple management of ensuring commodity prices rise but in a steady, consistent, unspectacular manner. The present course seems destined for a sudden crack...likely in conjunction w/ that break in the dam above.
Hambone some follow up for you...
" Hambone is making an incorrect conclusion about the waters backing up and threatening to overtake the dam. That is hardly happening. If anything its the reverse, .gov can barely print enough money for the Fed to absorb fast enough (see original chart on the article). If anything, the Fed needs the government to print more money at the moment, which .gov will dutifully do come election time when its time for politicians to promise moar handouts. Get to work Mr. Schumer!
And the second part about the commodity producers is negligible, because in the first place, as long as OPEC is comfortable, so is pretty much everyone, and they are very vocal about maintaining this rigged $100 range. Secondly, only the small commodity producers are totally fucked, the big producers of commodities will be just fine, they can always count on the crony capitalist system of handouts and bailouts to make sure their production isnt impacted to any serious degree, not to mention insider tips from those executing all this to help them keep profits even on their big time futures hedging operations. From now on BHP will simply have to short the shit out of the paper iron and copper market in order to stay profitable.
Even though I don't post much as of late it is the sub threads like the one above that always keep me coming back to read the comments for understanding and wisdom, thanks guys!
please post more. I've been on here so long I ran out of fart jokes 2 years ago.
I see two perfect gentlemen forging a new constitution in a bunker. ;-) America is larger then it's self appointed spenders?
I'm thankful we have Fonz and Ham_Bone to set the record STRAIGHT!
Pretty much. Of course, the other question is if they own it all and are not selling, how can the price experience selling pressure?
the more they own the more irrelavant it becomes
Would be interested to know what percent of "foreign" is Japanese, bought under a quiet US/JP deal to do so.
'00
'08
'13
I think this has been the plan all along. No change can come about to the currency or interest rates without being the majority owner first, thereby diminishing cause and effect.
I wish I was joking fonz. Seeing this guy spam every thread has me scratching my head. His schtik is getting very old and stale.
I know, I used your post to change the subject back to the content of the article.
When in doubt, blame Mossad.
How do you keep it from leaking out your ears?
Fonestar is highly unemployed and highly living in his mom's basement......
Until he isn't.
Goooey high protein liquid swallowing I bet.
Like I said earlier, it's Satoshi his own self posting as fonestar, talking his book.
Yeah, it's only rising because it's a big conspiracy maaaan!!
You haven't denied that you are Satoshi. There's a conspiracy for ya.
I do deny it (as if I really need to but that's flattering hahaha...) and will go on to say it's people like yourself that wind up making all conspiracy theories look dumb.
You bestow too much importance on a humble ZHer having some fun at your expense. You remind me of DCFusor trying to convince everyone here to buy a Chevy Volt.
Believe me pal, I am happy you people are not buying BTC :-)
I am happy you people are not buying BTC
Agreed. We don't need their endless bitching in the new, clean pond.
Exactly, CH1, you and Fonestar can ping-pong bitcoin up to $100K and mutually claim victory......
He was laid off at the donut shop and picked up this Obama spammer job.
fonestar or LTER: Hmm, curiouser and curiouser...
But the dummies on this site still like that bank's paper.
I understand that you have been called all sorts of unfair names, my friend, but please pull back from name calling.
Whether or not they "deserve it," it doesn't help. Let arrogant ignoramuses be what they are and judge themselves.
Treasury issues futurative claims upon the collective surplus of the nation's economic aggregates (very weak is the chain of authority from populace to do so). Fed prints vast sums of new money and purchases through prime dealers diluting out all other currency holders (eventually). If you were to sum the treasury holdings of the owners/subordinates of central bank what greater percentage would it really be?
This is foolhardy because all see the trick. Tax receipts may pay the interest but in open sight is viewed the never-ending and enlarging deficits which surpass revenues. All view the money creation which pretends purchase but without the filthy process of invention and creation of goods/services to back the new legal tender.
How the system doesn't immediately break down, I don't know. Some pretend that the LLR will never have to submit their portfolio to real market scrutiny but will allow them to naturally run off. Some pretend that the extreme intervention is a limited function over time which will be subjected to a "taper" at some future point and normal monetary policy will resume. Some pretend that employment will revive, that wages will resume in robustness, that the free market will at some future time, "step into the breach". Some pretend we can have unlimited QE, the state make arbitrary interventions into the free market, whimsical determinations of the price of money; indeed, everywhere dilution without penalty repercussion. But take the experience of 22+ year Japan. Every intervention precipitated another larger scale intervention. Every head-fake attempt to position back to the traditional market was met with further dimunition.
QE is the mort in international MortGage. It destroys capital. It destroys confidence. Once embarked upon it cannot be restrained.
Take it to its logical limit: What is to stop the instantaneous creation of infinite money? There is no restraint, except that those who benefit by this strange priestcraft seek to extenuate their gain through its implementation. It is a means to create wealth differentials over time to capture the beneficial activity of society and direct it to their good and the public's loss. Infinite money destroys the system. Dibs and drabs of QE bursting to the scene over time, carefully propagandized and sprinkled with admonitions of "taper" (which never come true) keep this child's playtoy of an economic system viable.
Can we afford to make the mistake of an economic system that has leapfrogged labour, machinery, factories, thrift and wise husbandry and gone straight to state-sponsored fraud of unbacked money creation? At what point does national and international repudiation take hold?
Fantastic post. Thank you.
fonestar
Why all the hate brother? Did your boyfriend not show you who is the top in your realtionship this morning.
c'mon... exiting that will be a non-event!?!
Yeah just like Hiroshima and Chernobyl and Hurricane Katrina were "non events". Yeah... that's the ticket!
You are correct. It will be a process.
10 and 30 year wil continue to get rocked .. smart $ knows the taper will come.. now they searching for nominal asset value IE .. rational value seeking.. http://hedge.ly/1aWnWdO
"High Quality Paper"
priceless
"Made of 100% recycled third world nations"
The US, through the fiat dollar, has indeed turned the whole world into its own personal labor camp. People making stuff for us in exchange for nothing except fiat. Alexander the Great, ancient Rome, etc, etc, have NOTHING on the US empire.
we had libor fixings with our turkey on thursday. luv those fixings! YUM YUM!
"and all of it some time in 2018."
That's the been the plan all along.
Looking more and more like Japan all the time, wouldn't you say? I know it's not a perfect analogy, but it's still the closest one I've got to explain where we're headed.
Except that the Japanese have to weaken their currency to strengthen their export market, since they still have to at least nominally make some shit and sell it. Whereas here the USD goes up so its cheaper to buy shit from other countries with all the new debt that's being issued. So who's smarter?! Stupid Japanese...
Shades of the Hunt Brothers...
Time will collapse somehow, on their orderly run-offs absent petrodollar singularity.
when was it China got their direct Fed window Pass.
The rationale is simple. Either this madness continues or a hundred trillion in interest rate derivatives go boom. Now pull my finger.
So the lesser of two madnesses, that will likely end in boom anyway?
Who is in charge of this shit?
everything that has a beginning has an end...
n+1. this is the qe model. it can go on forever! lol
" high quality colleteral" LMAO!
Great, that makes things like our entire financial structure so much more, I dont know, robust yeah thats it..
Who needs liquidity when you have an endless printing press bid? Treasuries are worth whatever the Fed says they are worth. Stocks are worth whatever the Fed says they are worth. The only loser is the real economy. That is the same as it has been for 40 years. I am pretty sure the COMEX was unable to deliver gold this contract. But they keep selling contracts anyway. They put a number on a screen. If you can't make money selling at that number, close your business. If you bought something at that number, but it does not exist, close your business.
Short the w/i all day long when uncle's in the house.
taper
v. to absorb over 0.3% of all Ten Year Equivalents, also known as "High Quality Collateral", from the private sector every week
As per FDIC, banks own only $150 billion in Treasuries and almost $900 billion in agencies.
Banks hate treasuries and short the living Jesus out of them - with the blessing of the FED who lends Treasury collateral to them daily to the tune of at least $25 billion/day - $12 billion in securities lending (+$8 billion rolled over from the day before), $3-8 billion in reverse repo (today was $8billion as POMO was light!) plus POMO.
Who needs to own them when you can borrow them from the FED and pledge them as collateral (and re-pledge) on risky bets, or even short them straight!
Banks hold $270 billion in foreign debt (most likely Deutsche Bank's US subsidiary Taunus).
So Tyler.... when are you coming out with your 2yr's vs 10yr IRS steepener trade ?
Gold getting slapped around like a little b*tch again today. The miners...wow... brutal. Silver nearing its pre-QE2 level. This really is the sign. But not the sign you guys are wanting. Near term its Silver/Gold slam fest. Gold 1000 and silver 15 soon to come. That would be the ever symbolic 66.666 gold to silver ratio we were expecting. But, it's not gonna stop there. By 2015 we will see Gold 800 and Silver 11. Why? Because the markets will destroy anything in its path. No one wants to hold "flight to safety" assets when there is no risk in the market... at least not yet. It's sunshine and rainbows till 2016 people. S&P +20% per year until mid 2016. Gold/Silver will wash everyone out in the mining and metals game. Gonna be ugly. Before it gets ugly.
Wrong. Production costs are well above those levels. Miners can not, and will not, be in business at $800 and $11. That means real physical shortages.
No risk in the market? WTF? Give your head a shake. Sounds like you aren't up to speed on the fraud ridden paper market which is in the process of imploding right now.
Mining production costs can go down during a recession.
What.The.Fuck? Mining costs have increased every year for many years. There is inflation in the pipeline.
Costs are up not down.
nope. gold is the only market of the world where supplier flow is not relevant. there can't be "shortages" as for consumabls
miners could go bust. all of them. the world would not stop. yet this isn't a reason not to stack every month, then after a year they could reopen due to immense price gains
having said that, at 1'150... things could get frantic
Huh? That's ridiculous gibberish. In 2008 we saw massive shortages and delivery delays.
His argument also ignores the case of silver, for which there is most certainly NOT a 50 years' production stockpile, not to mention platinum and palladium, which curiously tend to follow the price movements of gold despite the fact that each metal has an above-ground stockpile of less than ONE YEAR worth of annual production. Something is not right with this picture.
Different type of risk. This is not a free market anymore. If you play it like that you will get crushed. You cannot buy anything without first considering global Central Bank intervention. Everything else is a guess. This is a global crisis with everyone eating and drinking from the same trough. You have to remember, the housing bubble started back in the 90's, went 15 years. Credit bubbles have lasted for decades. The bond bull has been running for years and years... remember, if the Fed saved Lehman brothers, it may be a different story. They will not make that mistake again. They will support EVERY drop in the market. They are willing to take us to S&P 5000 before letting off the gas.
Optimist. Wake me when it's under $300 an ounce (the last time I took delivery of physical gold).
Unwind that bitchez!
Robbing John Q to pay Sam.
Bitch'n! Good work Benji!
Hey Yellen, Fisher, Rosengren, Dudley and Evans go for 100%!!!
It'll be there soon enough. Money for nothing, checks for free.
One huge fiat, Ponzi game.
Can't wait until the rest of the world refuses the US dollar.
Keep the US sheeple dumb until they try and use it overseas and it's refused.
Since the Fed returns its profits after expenses to the treasury, doesn't this mean that this is interest free? What position does this put the Fed in for an actual loss?
Profits ONLY after the 6% statutory Preferred dividends to its shareholders, which are the member banks of the Fed system. I won't tell you which member banks are currently the major "SHAREHOLDERS". Every nationally chartered bank must be a member and State chartered banks can choose whether or not to be and receive the "BENEFITS". Every Member must place a certain percentage of its equity capital into Fed Res Bank Stock, - the statutory 6% dividend is paid on that "required" investment.
However, please differentiate in you mind what so called "ownership" means and goddamned "CONTROL". With the advent of mutual funds/401 plans/IRAs, no individual common person has any voice, if they ever did:). The money mangers/corp execs/board members - all belong to the same fucking club. Guess what - you and I ain't fucking in it, LMFAO.
What a fucking racket!!
Here's an idea. UPVOTE FONESTAR. Every time he posts, UPVOTE. Then the fuckwad won't know what to post. Hilarity ensues, eventually, FONESTAR gets bored or believes everyone agrees with him that Bitcoin is the perfect currency.
DO NOT DOWNVOTE FONESTAR. This troll needs feeding until he explodes.
The demise of the western elitist political class :
From Maggy to Blair, to Brown, to Cameron, to Boris of London : London Mayor Raises Eyebrows, and Ire - NYTimes.com
The same is true in France and in the US; the race to bottom for the politicians in power; as a whole CLASS.
That is the unsavoury cut. They are ALL CORRUPT!
Its the fall of democracy.
The choice ? POpulist statist neo fascism OR world transnational Oligarchy corporatism; aka new world order aristocracy.
I guess they will have to re-invent mathematics when they get to 100%, so they can go even higher!
RBS/NatWest Bank UK whole computer system down, cash cards don't work, online accounts have no access, and balances can't be even viewed. Total seize up!!!!!!
Can you say 'Weapon of it's own Mass Destruction' -I knew that you could?
It's a beautiful day in the neighborhood...
First rule of the Ponzi market, don't mention Ponzi.
Listen to this local station, commercial free and music from a better time.
http://tunein.com/radio/WHVW-950-s29468/
So now the Federal Reserve owns 1/3 of the country. Just great.
Don't blame them (much) it was sold to them for a song. Now get back to that TV set!
Sorry all for this most likely very stupid set of questions. I still have a lot to learn.
But, do I understand correctly, that:
* The Fed just prints money out of nothing and then buys the US Gov debt?
* Then the US taxpayer is paying the interest (an ultimately) principle on that debt?
* At some point, for arguments sake, the Fed stopped buy, wouldn't they just have trillions of dollars as assets?
* And they are a private bank? So you have a few unknown people owning a private bank in which the US taxpayer is giving trillions of dollars to? How do the owners of the Fed ever lose? Isn't this the ulitmate get rich scheme? No risk, nearly unlimited wealth?
Yes, you are right. Now try not to go insane watching everyone walk around as if everything is normal
It's called... The Matrix. (see the movie series)
Neo wants to know, what is the Matrix? Unfortunately, no one can be told what the Matrix is. You have to see it for yourself.
Cannon Fodder, it sounds like you are starting to step out of living in the illusion known as, The Matrix.