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Fed's Balance Sheet Rises To Record $4.01 Trillion

Tyler Durden's picture


Dear Federal Reserve: happy 100th birthday! What better way to celebrate it than with a balance sheet that just crossed above $4 trillion, or $4.01 trillion to be precise, which represents 24% of the recently upward revised US GDP, for the first (but certainly not last) time in history. Fingers crossed that promptly after next year's Untaper, the Fed can boast a $5 trillion balance sheet this time next year, and so on, and so forth.


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Thu, 12/19/2013 - 17:37 | Link to Comment jekyll island
jekyll island's picture

You know the costs of caring for the elderly skyrocket at the end of their lives. Maybe we could be so lucky.

Thu, 12/19/2013 - 17:56 | Link to Comment Chris Jusset
Chris Jusset's picture

The Fed is the only thing keeping the Ponzi house-of-cards from collapsing ... which it accomplishes by inflating all the bubbles.

Thu, 12/19/2013 - 18:13 | Link to Comment nope-1004
nope-1004's picture

What's even more offensive about the above balance sheet fact is that the bearded racoon delivering the speech yesterday sat upon his throne, dolled and dressed like a plastic apparition, throwing out big words, flanked by MY American flags, talking down to reporters who have to pre-submit questions for clearance, pretending all the way that everything is under control.  It is under direct control - full force manipulation.

Anyone with an ounce of integrity watches that circus and literally feels like barfing.  Anyone involved in the economy in any meaningful way sees how bad things are, and sees the coverup.  This facade has gone extreme, full government and state sponsored stock buying and asset manipulation as evidence that our once relatively "free" capitalist economy has morphed into a state run fascist crony banking casino.  If you believe the government numbers, then you need to wake up.

IMO, anyone that gives Bernanke respect has, themselves, questionable integrity, because the only way you would give that liar respect is if you were benefiting from this high class theft.   In that case, I think you should go to hell too alongside that lying fecal dirtbag.


Thu, 12/19/2013 - 18:34 | Link to Comment Ham-bone
Ham-bone's picture

Was just discussing Fed's eventual "ownership" of all US Treasury debt...except that based on the new $480 B / yr in Treasury purchasing QE, the Fed will be losing control on a % basis every month*...and the only purchaser other than the Fed since '08 has been "foreigners".  Currently Fed owns 20% of all outstanding notes/bonds and if my math is close then this % will be falling based on current QE levels.

So, I see three options, A- Fed doubles or triples QE?, B - foreigners keep on buying in bulk?, C- US domestic equity market crashes and everybody runs to "safety" of Treasury's (or D, it all falls apart).

*Assuming a conservative budget deficit of say $600 B /yr...and that SS will need to sell off likely $100 B / yr in intra-gov debt for their deficits...that is $700 B/yr "new" issuance and 2/3rds in notes/bonds...means bout $500 B/yr in new notes/bonds issuance.  If the Fed does not buy in excess of their taper level of $480 B / yr their % of ownership of the outstanding debt will be decreasing!!!  They need something like a QE Treasury bond focused tripling (increase Treasury bond purchases to $1.5 T while maintaining MBS @ $400 B...or QE to $2 T annually) to even get moving toward a 50% ownership by 2016 

Bottom line - for the Fed to maintain this game, it's time their balance sheet takes a hard upward turn and starts really climbing...otherwise there is no natural buyer of debt @ anywhere near these yields...Perhaps the only reason the Fed would taper now is to incite a crash so that the Fed can make the neccessary QE increases to "fix" the rising interest rates and/or crashing stock market

Thu, 12/19/2013 - 18:42 | Link to Comment Ham-bone
Ham-bone's picture

If I didn't konw better - I'd note the Fed is simply purchasing the portion that domestic buyers would be buying and buying all the domestics are selling...because the "foreigners" % of ownership has skyrocketed to $5 T + of the outstanding notes/ bonds. 

Almost like they Foreigners think they are going to make good on those Treasury' they've been told they are gonna get gold or something for them???

Thu, 12/19/2013 - 19:28 | Link to Comment Four chan
Four chan's picture

the us taxpayers liability has just topped 4,100,000,000,000. 

say it right please.

Thu, 12/19/2013 - 20:26 | Link to Comment old naughty
old naughty's picture

me not impressed...not since the 55 tril adjustment.

Fri, 12/20/2013 - 01:16 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Boris is alway to struggle with math... if Fed Balance sheet is under $1T in 2008, but is now over $4.1T..., well then any US Dollar Boris is to keep in mattress, is now 1/4 thick as when first stuff. So, if dollar is represent 1/1T of economy in 2008 as legal equitable share, but action of bankster is now make to worth 1/4 dilution, then why is bankster still breathe through unsmashed orifice with teeth intact!? Stupid Amerikan is idiot sucker can't do simple math? Is miserable serf can't find testicle in trouser? Is bleating sheeple can only vote for puppet leader who is most time high on crack cocaine? Boris just curious.

Thu, 12/19/2013 - 20:39 | Link to Comment BigJim
BigJim's picture

 Fingers crossed that promptly after next year's Untaper, the Fed can boast a $5 trillion balance sheet this time next year, and so on, and so forth.

That's only $1T a year. Do you really think that'll be enough, Tyler?

Thu, 12/19/2013 - 18:46 | Link to Comment lotsoffun
lotsoffun's picture

nope-1004, thanks.  you said all.


Thu, 12/19/2013 - 17:49 | Link to Comment prains
prains's picture

$4.01 Trill.....what's that in Bitcoins LOL


fucking tards

Thu, 12/19/2013 - 18:00 | Link to Comment Bunga Bunga
Bunga Bunga's picture

It makes Bitcoins look literally worthless.

Thu, 12/19/2013 - 18:27 | Link to Comment prains
prains's picture

ding ding we have a Winner!!!!!



What? fonestar you and your imaginary double don't like me,what backs bit coin? Other than 110 volts, nothing!!! But maybe it's backed by a bunch of white niggas that should be solid right

Thu, 12/19/2013 - 17:48 | Link to Comment Black Forest
Black Forest's picture

Why, do you suppose, did Armstrong land on the Moon in 1969 and was followed by China this week?

Thu, 12/19/2013 - 17:54 | Link to Comment prains
prains's picture

it was the roids, he ran out of room to peddle his ass off

Thu, 12/19/2013 - 18:03 | Link to Comment Tsar Pointless
Tsar Pointless's picture

I was going to say it was because he was running out of good air here on Earth and needed a new place to blow the trumpet.

Wait - which Armstrong are we talking about? LOL

Thu, 12/19/2013 - 18:38 | Link to Comment ZH Snob
ZH Snob's picture

couldn't happen to better bunch of guys.

what concerns me though is what they will demand from us (our govt, payed for with our taxes) once we admit bankruptcy.

Thu, 12/19/2013 - 18:57 | Link to Comment whatsinaname
whatsinaname's picture

Based on the current rate of bond buying when will the Fed own the entire bond market ?

Does the Japanese Central bank now own 100 % of their bond market now that they have been doing QE for 15-20 years ? And how has that affected the JGB curve and prices ?

Thu, 12/19/2013 - 17:36 | Link to Comment Kamehameha
Kamehameha's picture

In southern China, there is a small animal, a kind of leopard, which is the same size as a cat.  It is much weaker in strength than a tiger, but it often attacks a tiger when it sees one.  It is as nimble as a squirrel and usually lays in ambush in a tree, and suddenly jumps onto the back of the tiger, gets hold of the tiger's tail, and uses its sharp paw to vigorously scratch the tiger's anus.  The tiger jumps and roars from pain, but it is unable to reach the leopard cat.  The only solution is for the tiger to roll on the ground, at which time the small animal flees rapidly. 

Sometimes one who is inferior can also be in an advantageous posture if he makes use of the situation and all the advantages that he has.

Sun Tzu

Thu, 12/19/2013 - 17:40 | Link to Comment Billy Sol Estes
Billy Sol Estes's picture

Tiger will be spotting every time he wipes for a month.

Thu, 12/19/2013 - 17:44 | Link to Comment Unprepared
Unprepared's picture

I also heard this joke story from a Somali:

Somalis used to arrange cat fights with other foreigners... and the Somali cat always seemed to win over the foreign cats. When asked, the Somali replied: "because originally, it was a tiger".

Not sure what the moral of this story is, but there you have it. 

Thu, 12/19/2013 - 17:55 | Link to Comment prains
prains's picture your anus when walking under trees

Thu, 12/19/2013 - 18:21 | Link to Comment Winston Churchill
Winston Churchill's picture

Always wise., more so when crapping with pigs around.

Thu, 12/19/2013 - 19:43 | Link to Comment caShOnlY
caShOnlY's picture your anus when walking under trees

The real moral of the story is to attack the asshole and the body collapses.   Gold represents the claw, the FED represents the asshole, the tiger is the country.

Thu, 12/19/2013 - 17:37 | Link to Comment yrbmegr
yrbmegr's picture

One day, I imagine the Fed will need to sell all those bonds to somebody.

Thu, 12/19/2013 - 17:42 | Link to Comment yrbmegr
yrbmegr's picture

So, now I think about it, the Fed (or Congress) has created a second interest rate lever they can use alongside the normal window rate.  They could go sell bonds rather than raise the window rate.  I'll have to think more about that.

Thu, 12/19/2013 - 17:42 | Link to Comment AlaricBalth
AlaricBalth's picture

You must have a vivid imagination.

Thu, 12/19/2013 - 17:37 | Link to Comment Billy Sol Estes
Billy Sol Estes's picture

Here's to another 100 years of prosperity.

Thu, 12/19/2013 - 17:39 | Link to Comment stacking12321
stacking12321's picture

happy taper everyone!


Thu, 12/19/2013 - 17:39 | Link to Comment ebworthen
ebworthen's picture


Thu, 12/19/2013 - 17:40 | Link to Comment Yellowhoard
Yellowhoard's picture

My, my, they blow up so fast.

Thu, 12/19/2013 - 17:49 | Link to Comment Jack Burton
Jack Burton's picture

Bernanke made the brave claim that the Fed could begin to unwind it's balance sheet whenever he chose and at minimal risk to merkets. Now, how in the fuck could anyone take that claim seriously. The Fed is not going to unwind, it is going to shoot for 5 trillion over the coming months as fast as possible. The wealth transfer and theft machine that is the Federal Reserve has not yet destroyed the entire Middle Class and Small Business Community in the United States, thus it has more work to do. Onwards, 5 trillion - 6 trillion and more.

The entire economic boom of the last 30 years in China has brought them a surplus of foreign capital of around 3.5 trillion dollars value, the US Federal Reserve has supassed China wealth holdings gained over 30 years by just printing for a half decade since 2008. Now, who is the fool, those who work hrad for their money, or those who print it. Let history judge!

Thu, 12/19/2013 - 17:49 | Link to Comment Binko
Binko's picture

In simple terms, what does that mean, that they have a 4 trillion dollar balance sheet?

They own 4 trillion worth of bonds?

What did they buy them with?


Thu, 12/19/2013 - 17:55 | Link to Comment Black Forest
Black Forest's picture

What did they buy them with?


Thu, 12/19/2013 - 18:46 | Link to Comment WTFUD
WTFUD's picture

Choppers maybe! Try Silence.

Thu, 12/19/2013 - 20:09 | Link to Comment SDShack
SDShack's picture

"Get to the Choppa!"

Thu, 12/19/2013 - 17:57 | Link to Comment Tsar Pointless
Tsar Pointless's picture

Yes, that's the balance sheet. They own four trillion dollars worth of bonds and other "assets". They bought them by using numbers on a computer screen. In other words, with nothing.

Thu, 12/19/2013 - 17:53 | Link to Comment Conax
Conax's picture

Where's Andrew Jackson when you need him?

Decorating the 20.  Turncoat.  

Thu, 12/19/2013 - 20:36 | Link to Comment BigJim
BigJim's picture

The bankers' revenge, that. How old Hickory would be gritting his teeth if he knew.

Thu, 12/19/2013 - 17:56 | Link to Comment ChaosEquilibrium
ChaosEquilibrium's picture

It is an ASSET--FED can make it go away in 15 minutes!:)

Thu, 12/19/2013 - 17:58 | Link to Comment LMAOLORI
LMAOLORI's picture

Just remember kids YOU are US in the U.S. Federal Government!

Thu, 12/19/2013 - 17:58 | Link to Comment WTFUD
WTFUD's picture

Is this legal?

Thu, 12/19/2013 - 18:00 | Link to Comment Tsar Pointless
Tsar Pointless's picture

That gave me a chuckle. Thanks.

Thu, 12/19/2013 - 17:59 | Link to Comment JenkinsLane
JenkinsLane's picture


Thu, 12/19/2013 - 17:59 | Link to Comment Bunga Bunga
Bunga Bunga's picture

100 years and still growing. Any doctor would diagnose cancer.

Thu, 12/19/2013 - 17:59 | Link to Comment Dr. Engali
Dr. Engali's picture

It will be at 17 trillion before they are done.

Thu, 12/19/2013 - 18:02 | Link to Comment Tsar Pointless
Tsar Pointless's picture

Why in the hell would they stop there?

Thu, 12/19/2013 - 18:05 | Link to Comment WTFUD
WTFUD's picture

$4 trillion -:- 100 = $40 billion a year
Ben is now printing $85 billion ( probably double that ) per month.
We've come a long way folks!!

Thu, 12/19/2013 - 19:08 | Link to Comment ayanni
ayanni's picture

$75 billion - give them some credit man -

Thu, 12/19/2013 - 18:32 | Link to Comment WTFUD
WTFUD's picture

The $100 million chump change can go into a lucky dupe pot to help pay all the pending banker's legal fees.

Thu, 12/19/2013 - 18:20 | Link to Comment RiverRoad
RiverRoad's picture

And they own all the tax-payers in the US....nice trick.

Thu, 12/19/2013 - 18:29 | Link to Comment Quinvarius
Quinvarius's picture

Back in 1918 the entire base money supply was only 5 billion dollars.

Thu, 12/19/2013 - 18:37 | Link to Comment adr
adr's picture

I'm still trying to figure out how we have a $16 trillion economy when wages for actual working people are only a quarter of that number. The money to pay the EBT class must come out of the economy first.

Credit explains some of it, but you can't get to $16 trillion without a lot of creative accounting. It's all bullshit folks. Everything you see is an imaginary fairytale created to keep you entertained so you don't realize some asshole is robbing you while you watch the show and shoot him in the head.


Thu, 12/19/2013 - 20:34 | Link to Comment Binko
Binko's picture

One of the few posts anywhere that actuallly sees the core of the problem.

Nothing in our current society can survive in anything like it's current form if real average wages continue to decline and the number of people in the workforce continues to decline.

Low wages = low taxes = low consumption = nothing to support big government and empire. 

Piling up mountainous debt and playing games with numbers will only put the reckoning off for awhile longer. Eventually we will have a crash and then we will pick ourselves up and suddenly find that we are a 3rd world country.

The endgame of globalism is that all major nations will have the same social structure. 1% plutocrats, 9% government and professional enablers of the plutocrats and 90% the rest of us who will live in an odd kind of poverty where everybody gets cell phones, TVs and internet to keep them pacified but nobody gets any real quality of life.

Thu, 12/19/2013 - 18:41 | Link to Comment WTFUD
WTFUD's picture

Nice work if you can get it!!
Gotta give them 'their due'. Fed $4 trillion v Sheeples ( Butchered & Fucked 9 ways to sunday.
Eezzz an injustice Eet Eezzz
Game of 2 halves and we were murdered in both.

Thu, 12/19/2013 - 18:47 | Link to Comment q99x2
q99x2's picture

All friends and family of the FED let it be known that we have given you and the associated banking cartel members this 4 trillion of our slaves money because as of 2008 we gained the right to counterfeit US dollars for ourselves. This is a great victory and will pay for the extermination of the poor population, the elderly, the blacks, the fat stupid white fuckers and their children.

Happy Holidays

PS I'm going golfing.

Uncle Tom Totus

Thu, 12/19/2013 - 18:53 | Link to Comment TrustWho
TrustWho's picture

You guys sound like you believe the Fed. Do you really believe the assets the Fed has purchased has value? For example, I would bet every financial asset the Fed purchased from JP Morgan had a current market value of $0.00 even though I am sure it was marked much higher. In fact, I bet JP Morgan made a profit on this worthless shit the Fed purchased!

Thu, 12/19/2013 - 19:00 | Link to Comment ultraticum
ultraticum's picture

This chart's x axis should go back a few hundred years.  Without that relatively long, flat line to the left, the mind doesn't comprehend how parabolic the last 6 years has been.  The FRED chart of the St. Louis monetary base has become my email signature . . . people need to grasp the insanity in its true perspective.  We're doomed.

Thu, 12/19/2013 - 19:45 | Link to Comment alfred b.
alfred b.'s picture


The Fed's 4 Trillion Balance Sheet is the amount that they admit to!    These guys have a slew of Off-Shore accounts in the Caymans & Switzerland where it could be hiding Trillions of more debt....somebody is financing the excesses of gov't and most of it is not showing up anywhere...yet!    According to ShadowStats, the true deficit is between 4 & 5 T$, so where is the funding coming from??

     loll...55 Trillion of Swaps missed by the CFTC?!?!?


Thu, 12/19/2013 - 19:38 | Link to Comment polak potrafi
polak potrafi's picture

to apprise

the FED


If this balance sheet

goes to zero tomorrow

then the value of gold

may gou up

(in terms of gas, guns and buns)


For now

we need to agree

that the GROWTH

of this balance sheet


the price of gold

(in USD terms)

Thu, 12/19/2013 - 19:51 | Link to Comment rlouis
rlouis's picture

An institution owned by banks buys the banks crap loans, with money borrowed in the name of the taxpayer, and printed out of thin air.

Thu, 12/19/2013 - 20:05 | Link to Comment SweetDoug
SweetDoug's picture




'But hey! Don't worry!


The rate of increase is falling! The amount is getting smaller!

It WAS growing at 30% a year.  1 Trillion on 3 Trillion is… 30% of 3 Trillion is… Umm… 4 Trillion!


Next year, it'll only grow at 25% a year! Repeat similar as above!


In 5 years, it'll only be growing at 10%!!


Think of all the money we're saving!??!?


(I oughta be in politics!!)


Thu, 12/19/2013 - 20:14 | Link to Comment Mad Muppet
Mad Muppet's picture

It's all starting to make sense now:

Thu, 12/19/2013 - 20:17 | Link to Comment optimator
optimator's picture

I'm not that good in math...what's 4 trillion dollars in 1913 dollars?

Thu, 12/19/2013 - 20:29 | Link to Comment Pareto
Pareto's picture

A close friend of mine emailed me this recently, made me laugh, so thought i'd share.


"Goddamn retirement looks so far far away.  Mercury, venus, phukinripoff, mars, jupiter……."


Thu, 12/19/2013 - 20:38 | Link to Comment Coldfire
Coldfire's picture

4 trillion "balance" sheet? Yeah, marked to unicorn.

Thu, 12/19/2013 - 20:45 | Link to Comment Bobportlandor
Bobportlandor's picture


99 Bottles Of Beer On The Wall
Thu, 12/19/2013 - 21:06 | Link to Comment BeerMe
BeerMe's picture

Happy Birthday Fuckers!

Can we please get our own Manchurian candidates in as Fed board members and kill the beast?

Fri, 12/20/2013 - 08:56 | Link to Comment Downtoolong
Downtoolong's picture

They should memorialize each trillion on the Fed balance sheet with the name of the Chairman who crossed it the first time, e.g.:

 $4 trillion  - The Bernanke Threshold

$10 trillion – The Yellen Threshold

They might as well carve it in stone somewhere, because, we will never cross these thresholds again on the way back down. This token tapering they just did is also part of the BS show, to make it look like they have control over something which they really don’t.

For that reason, I think we should also borrow the idea from the final scene in “Inglorious Basterds” and carve the number in each of their foreheads too.

Fri, 12/20/2013 - 14:14 | Link to Comment chinaboy
chinaboy's picture

Fastest growing "BANK".

No control, just ctrl+P.

Sat, 12/21/2013 - 06:39 | Link to Comment resurger
resurger's picture

Where is Mr. Taper? 4T and rising

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