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 | 4261863 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 | 4261890 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 | 4261967 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 | 4262020 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 | 4262061 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's...like they've been told they are gonna get gold or something for them???

Thu, 12/19/2013 - 19:28 | 4262174 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 | 4262312 old naughty
old naughty's picture

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

Fri, 12/20/2013 - 01:16 | 4262984 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 | 4262347 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 | 4262077 lotsoffun
lotsoffun's picture

nope-1004, thanks.  you said all.

 

Thu, 12/19/2013 - 17:49 | 4261901 prains
prains's picture

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

 

fucking tards

Thu, 12/19/2013 - 18:00 | 4261944 Bunga Bunga
Bunga Bunga's picture

It makes Bitcoins look literally worthless.

Thu, 12/19/2013 - 18:27 | 4261952 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 | 4261907 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 | 4261921 prains
prains's picture

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

Thu, 12/19/2013 - 18:03 | 4261956 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 | 4262060 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 | 4262108 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 | 4261864 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 | 4261874 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 | 4261888 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 | 4261925 prains
prains's picture

....watch your anus when walking under trees

Thu, 12/19/2013 - 18:21 | 4262013 Winston Churchill
Winston Churchill's picture

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

Thu, 12/19/2013 - 19:43 | 4262206 caShOnlY
caShOnlY's picture

....watch 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 | 4261867 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 | 4261880 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 | 4261891 AlaricBalth
AlaricBalth's picture

You must have a vivid imagination.
:-)

Thu, 12/19/2013 - 17:37 | 4261870 Billy Sol Estes
Billy Sol Estes's picture

Here's to another 100 years of prosperity.

Thu, 12/19/2013 - 17:39 | 4261871 stacking12321
stacking12321's picture

happy taper everyone!

 

Thu, 12/19/2013 - 17:39 | 4261875 ebworthen
ebworthen's picture

PONZI!

Thu, 12/19/2013 - 17:40 | 4261876 Yellowhoard
Yellowhoard's picture

My, my, they blow up so fast.

Thu, 12/19/2013 - 17:49 | 4261902 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 | 4261913 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 | 4261933 Black Forest
Black Forest's picture

What did they buy them with?

Helicopters.

Thu, 12/19/2013 - 18:46 | 4262076 WTFUD
WTFUD's picture

Choppers maybe! Try Silence.

Thu, 12/19/2013 - 20:09 | 4262261 SDShack
SDShack's picture

"Get to the Choppa!"

Thu, 12/19/2013 - 17:57 | 4261942 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 | 4261916 Conax
Conax's picture

Where's Andrew Jackson when you need him?

Decorating the 20.  Turncoat.  

Thu, 12/19/2013 - 20:36 | 4262340 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 | 4261929 ChaosEquilibrium
ChaosEquilibrium's picture

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

Thu, 12/19/2013 - 17:58 | 4261935 LMAOLORI
LMAOLORI's picture

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

Thu, 12/19/2013 - 17:58 | 4261937 WTFUD
WTFUD's picture

Is this legal?

Thu, 12/19/2013 - 18:00 | 4261946 Tsar Pointless
Tsar Pointless's picture

That gave me a chuckle. Thanks.

Thu, 12/19/2013 - 17:59 | 4261943 JenkinsLane
JenkinsLane's picture

Heigh-ho!

Thu, 12/19/2013 - 17:59 | 4261950 Bunga Bunga
Bunga Bunga's picture

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

Thu, 12/19/2013 - 17:59 | 4261951 Dr. Engali
Dr. Engali's picture

It will be at 17 trillion before they are done.

Thu, 12/19/2013 - 18:02 | 4261957 Tsar Pointless
Tsar Pointless's picture

Why in the hell would they stop there?

Thu, 12/19/2013 - 18:05 | 4261969 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 | 4262122 ayanni
ayanni's picture

$75 billion - give them some credit man -

Thu, 12/19/2013 - 18:32 | 4262012 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.

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