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In 2013 The Fed Bought 150% More Treasurys Than All Foreigners Combined

Tyler Durden's picture




 

Now that we have the full history of foreign Treasury purchases in 2013, we know the following: in December 2012 total US paper held by foreigners was $5,573.8 billion; one year later it rose to $5.794.9 billion or a $221 billion increase. So how does this look in the context of QE? In the past year, courtesy of the Fed's $1 trillion in TSY and MBS purchases, Ben Bernanke purchases some $552 billion in Treasurys, or about 150% more than all foreigners combined! Suddenly the need for MyRA is becoming all too clear...

 

And as a bonus chart, here are the top holders of US paper as of December 31, 2013.

 

Thank you Fed (and Europe capital Belgium) for continuing to monetize US deficit spending.

Source: TIC

 

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Wed, 02/19/2014 - 12:41 | 4452903 NoDebt
NoDebt's picture

Damned furriners.  Never pullin' their weight.

Want something done right, gotta do it yourself.  Thanks, Fed.  You guys are the best.

Wed, 02/19/2014 - 13:02 | 4452989 BaBaBouy
BaBaBouy's picture

PPP OOO NNN ZZZ III........

Wed, 02/19/2014 - 13:04 | 4453004 boogerbently
boogerbently's picture

Thjink of all the INTEREST we'll make of those investments!!!! 

 

 

 

 

 

 

 

 

 

 

?

Wed, 02/19/2014 - 13:22 | 4453096 pods
pods's picture

"That's as good as money, sir. Those are I.O.U.'s. Go ahead and add it up, every cent's accounted for."

 

Wed, 02/19/2014 - 13:28 | 4453123 Skin666
Skin666's picture

LOL

 

"That there's $275,000 for the Lamborghini. You might want to hold on to that one..."

Wed, 02/19/2014 - 13:04 | 4453002 Rafferty
Rafferty's picture

Beats me why anone would buy US Treasuries, unless the Fed is calling in favors.....

Wed, 02/19/2014 - 12:41 | 4452906 LawsofPhysics
LawsofPhysics's picture

By design.

 

If I could print as much currency as I like I might buy the government and all their assets (including military) too.

Title and ownership is about power and control, and that is what this is and has always been about folks.

Wed, 02/19/2014 - 12:58 | 4452978 BandGap
BandGap's picture

Another sign of the end times. Free Money for Nothing at birth.

http://www.foxnews.com/politics/2014/02/18/lawmakers-look-at-universal-s...

The FSA is going to love this. Breed on!

Wed, 02/19/2014 - 13:03 | 4453000 NOTaREALmerican
NOTaREALmerican's picture

At some point the bottom 80% needs to get access to the loot owned by the top 20%.

Otherwise,  we end up like India.

Survival of the fittest has only one ending.    If you don't like that ending,  you've got to come up with another one.

Wed, 02/19/2014 - 14:04 | 4453307 Calculus99
Calculus99's picture

We're heading for a 50-40-10 world.

50% very poor, very pissed off, virtually no hope and not a lot of jobs.

40% middle class

10% fat cats at the top.

The 10% are really scared of the 50% because the 50% want blood so they protect themselves by employing the 40% to keep the 50% at bay.

Wed, 02/19/2014 - 14:37 | 4453460 LawsofPhysics
LawsofPhysics's picture

10% fat cats?!?!  You sir, are an optimist.

Wed, 02/19/2014 - 14:20 | 4453366 SDShack
SDShack's picture

LIke I said yesterday, it's all about flow. To keep the ponzi going, you have to keep the flow going. The Fed's plan is to control the bond market. They control 1/3 now, and have effectively neutralized the bond vigilantes. The graphs above prove the point. TPTB plan was exposed yesterday with the China treasury dump and Belgium treasury buy. The Fed is using proxy Central Banks, and together they probably have reached the 51% threshold. It's game over at that point. ZIRP forever. Credit Default Swaps are meaningless because TPTB just ignore the laws, or write new ones, just like they did in Greece and Cyprus. They have engineered the system to avoid the next Lehman event. We have a centrally planned economy now... planned by the Central Banks of the world. It's all about monetizing the debt with no risk because once you control the bond market, AND the printing press, you have perpetuated the ponzi. Debt is their god, and the world is going to be their serfs in their New Feudal World Order. Controling governments by controling their debt and thereby dictating how the govt security systems will be used to enforce the entire scheme. The countries that don't play along, will get wacked. It's the mafia way. Learn to think like a sociopath banker, and you understand exactly what they are trying to do. 

Wed, 02/19/2014 - 15:25 | 4453634 Kirk2NCC1701
Kirk2NCC1701's picture

This stuff goes back centuries, when Monarchs and Popes granted the Money Changers (Bankers) the ultimate power over their nations -- w/o realizing it at the time. 

We've born the fruits of their sins ever since, and most leaders and >99.9% of the populace still remain ignorant of these facts. 

How ironic that, for all their "Divine Right of kings" and "Divine Inspiration" of Popes, they did not see through the scam*.  Where was "Divine" Guidance and Inspiration in all this? 

Clearly the natural and supernatural entities were asleep at the switch.  But this holds true only if you (still) believe in the 'supernatural' stuff, that is.  Else (per Occam's Razor) the simpler explanation is that "Smarter and more cunning brains beat less smart and less cunning brains".  Same as it ever was, same as it ever will be.

 

* "Give me control of a nation's money supply and I care not who makes the laws." - Mayer Amschel Rothschild

"I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets.  The man who controls Britain's money supply controls the British Empire, and I control the British money supply."- Baron Nathan Rothschild, 1820

Wed, 02/19/2014 - 16:59 | 4454193 gunsmoke011
gunsmoke011's picture

Sounds easy enough - Abolish the FED - default on the paper they have bought - deduct it from National Debt and there you go - then claw back all of the money from the banksters where the FED has bailed them out of their bad loans and we would become a flush nation.

Wed, 02/19/2014 - 12:44 | 4452912 Dr. Engali
Dr. Engali's picture

The Bernank: "The federal reserve will not monetize the debt"

 

http://youtu.be/n6qo2S84r5w

 

As far as the myRa goes... nobody has any fucking money to put into a myRa. The next logical step is mandatory treasury purchases in private plans followed by confiscation.

Wed, 02/19/2014 - 12:46 | 4452932 Winston Churchill
Winston Churchill's picture

"Sub prime is contained".
Ben's greatest lies collection.
$4000,000,000,000-00 plus S + h.

Wed, 02/19/2014 - 12:42 | 4452915 buzzsaw99
buzzsaw99's picture

the fed gangsters will own it all some day

Wed, 02/19/2014 - 13:07 | 4453020 1stepcloser
1stepcloser's picture

They arlready do,,,they already do... We use their product (FRN) for Currency...it has an implied lien according to the book "they all it all including you by means of toxic currency"

Wed, 02/19/2014 - 12:45 | 4452928 DaveyJones
DaveyJones's picture

the fed is only acting like any good citizen, buying tons of bullshit

Wed, 02/19/2014 - 12:52 | 4452957 NOTaREALmerican
NOTaREALmerican's picture

Fundamentally, that sums up all human behavior.

People forget that powerful organizations are run by people who got into power by either creating very high quality bullshit or never questioning the already created bullshit.

Societies - and powerful organizations - are held together will bullshit.

Those who question the bullshit are shuned or (sometimes) killed.

(Love it or leave it ya goddamn hippy, and get a hair cut!!)

Wed, 02/19/2014 - 13:02 | 4452996 DaveyJones
DaveyJones's picture

real bullshit grows a garden

human bullshit grows a Ukraine

Wed, 02/19/2014 - 13:05 | 4453003 Skateboarder
Skateboarder's picture

In these days of manufactured/packaged everything, only one percent still know that bullshit is fertilizer?

As if anyone in the city ever saw real bullshit.

Wed, 02/19/2014 - 12:48 | 4452942 ussa
ussa's picture

Begs the question of why should the US need to issue Treasury debt in the first place.  

Wed, 02/19/2014 - 12:55 | 4452968 NOTaREALmerican
NOTaREALmerican's picture

Re:  Begs the question of why should the US need to issue Treasury debt in the first place.  

We can't have the government creating money!!    Think of the consequences if Congress was creating all that money.    It would be horrible HORRIBLE! 

Wed, 02/19/2014 - 12:58 | 4452981 LawsofPhysics
LawsofPhysics's picture

How else will so many useless paper-pushing middlemen survive otherwise?

Wed, 02/19/2014 - 13:07 | 4453006 DaveyJones
DaveyJones's picture

begging that question will lead to other kinds

Wed, 02/19/2014 - 13:38 | 4453171 eclectic syncretist
eclectic syncretist's picture

In order to pretend that reality isn't real?  In order to line the pockets of a few at the expense of all?  To create an unsustainable Vegas-style skimming operation wherein counterfeit value is dispensed by a priveledged few to the populace at a controlled rate in order to maximize the time the sting operation lasts?  Take your choice.  The Federal Reserve Act is all of this and more.

Wed, 02/19/2014 - 12:49 | 4452944 Hulk
Hulk's picture

Fonz ain't going to like this !!!

Wed, 02/19/2014 - 12:51 | 4452956 Herd Redirectio...
Herd Redirection Committee's picture

Fonz treats 'rolling' of Treasuries similar to new purchases, AFAIK. 

Wed, 02/19/2014 - 12:53 | 4452964 B2u
B2u's picture

Where is the "FUCK YOU BERNANKE"?

Wed, 02/19/2014 - 13:00 | 4452992 dow jones 20000
dow jones 20000's picture

Anybody else watching the S&P 500 getting absolutely butchered?

Wed, 02/19/2014 - 13:16 | 4453033 Dr. Engali
Dr. Engali's picture

Two points down is butchered? Wake me when we have 100+ shaved off in one session.

Wed, 02/19/2014 - 13:03 | 4452998 Skin666
Skin666's picture

Drudge Report in 3... 2... 1...

Wed, 02/19/2014 - 13:09 | 4453026 Typing Typer
Typing Typer's picture

Just monetize it already, or repudiate half the debt. Get it over with, it's all fake anyway.

Wed, 02/19/2014 - 13:14 | 4453048 bdub2
bdub2's picture

They believe in 'Merika! and they put our money where their mouth is.

Wed, 02/19/2014 - 13:15 | 4453053 Sweet Chicken
Sweet Chicken's picture

What could possibly go wrong?!

Wed, 02/19/2014 - 13:27 | 4453098 Sweet Chicken
Sweet Chicken's picture

^fonestar junk

*Correction* 

Maybe Bernanke signed on.

Wed, 02/19/2014 - 13:20 | 4453081 RaceToTheBottom
RaceToTheBottom's picture

Some wizard is going to tie the MyIRA and FED balance sheet and come up with >>>>  BOOM, a solution

Wed, 02/19/2014 - 14:49 | 4453130 fuu
fuu's picture

But, but, but, Belgium!

Wed, 02/19/2014 - 13:33 | 4453147 youngman
youngman's picture

At some point they will be buying it all...and very fast...as in an emergency as everyone else dumps it...

Wed, 02/19/2014 - 14:05 | 4453319 El Hosel
El Hosel's picture

When the Federallies pull a Hank Paulson on stocks they won't have any trouble selling those bonds... Just look what happened recently with just a few days of stock correction. They can't keep stocks up when the bond market is on the line.

Wed, 02/19/2014 - 14:14 | 4453368 EtTuEtTu
EtTuEtTu's picture

Just in case anyone was still cocerned about antiquated notions of a debt ceiling this pretty much assures no one ever hs to worry about it again. (until we REALLY do)

 Just in case politicians don't fold like a cheap suit on raising it, given their prodigious holdings the Fed can just 'forgive' large swaths of it and not even break a sweat.   

Wed, 02/19/2014 - 15:40 | 4453815 Kirk2NCC1701
Kirk2NCC1701's picture

Whaddya mean "buy"?  "Buy" with what?  Buy with fiat Fed Confetti?

No wonder we need the DOD, NSA, CIA and the MIC.  W/o us leaning on, or beating up the "Weak Dominos", the world would tell us and our Ponzi currency to FOAD.

And as the world (BRiC+EMs) is getting ready to do just that, we are front-running them with counter-measures:  National Uprisings, Civil Strife/Wars and Regime Changes at all pivotal places.

And, given the aging demographics and rapidly rising liabilities in the West, the US and EU have little choice but to trash the other economies and currencies -- just to keep the USD and EUR afloat, and prevent a massive "flight of capital".

"If you want to discipline the Monkey, you must behead the Rooster." - ancient Chinese proverb

Wed, 02/19/2014 - 17:46 | 4454410 NoWayJose
NoWayJose's picture

No surprise here.  Treasuries are mis-priced because of the Fed.  There are foreign buyers for treasuries, but only if rates go higher.  And in addition, with the Fed suppressing gold prices, the Fed is giving foreign buyers an attractive asset at a very good price.  Over-priced treasuries?  Or under-priced gold?  Hmmmm.

Fri, 02/21/2014 - 04:38 | 4461113 SuperCycleBear
SuperCycleBear's picture

If rates rise, the free cash flow in the US disappears. Free cash flow disappearing means US is insolvent. 

Thu, 02/20/2014 - 01:47 | 4456186 Colonel Klink
Colonel Klink's picture

Uhhhhh.....good luck with that FED! (sarc tone)

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