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Fed Releases Taper'd POMO Schedule - Allows 3 Days For Shorting In April
As expected, the Federal Reserve has released its Permanent Open Market Operations (POMO) non-monetizing-of-the-debt schedule for April with $30 billion of Treasury purchases (and $25 billion MBS). This is a 33% reduction from the 'normal' $45 billion Treasury purchase of last year. The POMO schedule very generously allows traders 3 days of non-money-printing potential shorting opportunities (Friday 4th, Thursday 17th, and Wednesday 30th)... however, this Friday is non-farm payrolls day and we will not be allowed a red day after that...
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Yeah but 20 days for shorting gold
Especially on non-farm Fridays! Print moar gold to sell....
So they are "only" printing at the rate of $660B per year now, that this is suppose to show how fically prudent the government is.
Just a decade ago, the entire M0 money supply was around $660B, so they are printing at the rate of the entire 2005 M0 money stock every year now. But this is fiscally conservative.
And everyone calls me a lunatic for getting the hell out of dollars and into anything else.
How do we even really know how much they are really printing? The could be telling us its $660B a year and it might be 12 Trillion a year for all we know. They could be telling us they are tapering, and printing like mofos behind the scenes to keep the stock market pumped, even in the face of so called "tapering". We can't audit the Fed, so do we even really know? We have to take their "word" for it. Thats a big LOL.
Good point, the $660B/year is the lowest number. But if you include all of the other "liquidity" tools, such as reverse repos, then the number is much much higher. I just can not understand how FRN's are accepted as collateral internationally for trade.
Take heed, China said the FED would be out around Oct and will be raising rates. The Chinese should know better than the dupes in so-called financial press. EOM
OR
They're not printing, at all.
They're just telling us they're printing because we think we can't survive without it.
Consumer confidence, and all.
Vatican in for the......... nvm, Belgium waffles it is again. The Italian bond nazi says no St. Alfonzo's pancake breakfast for you.
Isn't central planning wonderful?
not as good as pre-planning apparently.
I'll have a red instead, thank you. Steady Green is giving me a fucking headache.
One morning in April we will awaken to a magnitue 8.5 earthquake leveling greater Los Angeles rallying the Dow to new highs
Wouldn't be awesome if both D.C. and L.A. were hit wih massive quakes simultaneously?
See you down in Arizona Bay
Bitchez
+1 for the Tool reference.
Please explain how the FED's balance sheet expands by $104.8 billion with tapering ongoing.
Latitude25,
This is my big question as well... not even non-MSM seems to want to tackle this little issue. I basically posted the same question prior to noticing yours. It just appears as though everybody is perfectly content with digesting lies that aren't even disguised any more. QE is expanding, not contracting.
Has ZH addressed this question ever?
someone posted this before http://www.cnbc.com/id/101497635 not sure what's up
thanks
Well, QE is still happening, so the balance sheet should be growing. "Tapering" is not "ending, are you saying their balance sheet is expanding more than the current QE accounts for? Not sure I see that... yet...
Yes, that's the point... balance sheet is expanding at an increased (not decreased taper) pace.
They teach the new math to all citizens, especially NWO for politically connected. Right out of the public accounting models. When it comes to bottom lines both of these systems require the full cooperation of all citizens to cover the losses forever.
Link?
I can't immediately find this online anywhere.
http://www.cnbc.com/id/101497635
Balance sheets always expand as a result of tapering, duh.
See for yourself.
https://research.stlouisfed.org/fred2/series/BASE
Bankrate.com’s continually-updated charges against artificially low zero interest rates demonstrate that inequality is Fed policy. Never before have Americans, both young and old, been so severely attacked by their government.
And it fits that a government with no respect for its youth and its elderly and its retirees is a nation in decline of uncivilized government. Even many savage nations took care of their most vulnerable.
How does Fed policy hurt retirees?
Bankrate counts six ways. Here are the leading sentences in Bankrate’s 6 Ways Federal Reserve Policy Hurts Retirees (Published February 28, 2014) :
Fed policy effect No. 1: Paltry returns on savings
Rates on certificates of deposit, money market accounts and savings have plunged in tandem.
The result has been devastating for retirees counting on safe, fixed returns, says Michael Rubin, founder of Total Candor, a financial planning education firm based in Portsmouth, N.H.
"They're earning a lot less on their savings than any other time in recent history," says Rubin, author of "Beyond Paycheck to Paycheck."
Fed policy effect No. 2: Low rates on fixed annuities
"The problem is that the monthly income a client receives from their fixed annuity is based on interest rates at the time they purchase the annuity," [Alan Moore] says. "With interest rates at all-time lows, annuity payouts are also at all-time lows."
Nathan Kubik, a Certified Investment Management Analyst at Carnick & Kubik, which has offices in Denver and Colorado Springs, Colo., agrees that now is among the worst times to buy. an annuity.
"Locking in these historically low rates right now through fixed-rate annuities is the height of folly," Kubik says.
Fed policy effect No. 3: Underfunded pension funds
Today's pension funds are in big trouble. 94% of corporate defined benefit pensions were underfunded in 2012, according to a recent report by Wilshire Consulting.
Pension funds must make sure their assets grow at a pace adequate to cover future liabilities. The Wilshire report notes that today's low interest rates make this especially difficult to achieve.
Fed policy effect No. 4: Costly long-term care premiums
Long-term care insurance covers the cost of a wide range of expensive services you may need in your final years, including nursing home care, assisted living facilities and adult day care. This insurance potentially can save you and your family hundreds of thousands of dollars.
But thanks to falling interest rates, long-term care insurance premiums have skyrocketed, says Jesse Slome, executive director of the American Association for Long-Term Care Insurance.
Fed policy effect No. 5: Making safe havens unsafe
Scott says many retirees are risk-averse and typically park a good percentage of their cash in "safe havens," such as savings accounts and CDs. But low returns are forcing many older Americans to wade into the more turbulent waters of the stock market.
Other retirees are buying bonds with the belief they are safer than stocks. But Scott says Fed policy may be creating a bubble in the bond market that will burst once rates return to normal.
"For 30-plus years, bonds have been safe, and this seems ingrained in the minds of people," he says. "But with a rise in rates, these safe assets will lose value."
Fed policy effect No. 6: Stoking future inflation
The Fed's policy of keeping rates low is intended to make borrowing less costly and, thus, stimulate the economy. But all that "cheap money" may come with a high price if the money supply ignites inflation somewhere down the road.
A surge in prices would easily overwhelm the returns retirees get from CDs, savings and other fixed-income investments.
http://www.foxbusiness.com/personal-finance/2014/02/27/6-ways-federal-reserve-policy-hurts-retirees/
ummm...Federal Government to the Fed: "pay for everything."
Head of Banking Cartel: "no problem."
It is a little rich since Wall Street caused this problem in the first place.
Sure doesn't seem like the politics works too well here...and indeed, the number people voting in the last election was the lowest since the Great Depression...probably in absolute terms actually.
I'm not an expert in these matters of course but sure seems unsurprising.
"Thanks for your hard earned dough...now were going to give it to the most irresponsible people with even their own money on earth...let alone yours AND ours! Don't worry, it's all part of Plan Victory."
Now shut up and move out mister. Planet Peace is in full retardation too....
Exactly. First, we all need to pull together for the benefit of the economy and the country; then, it became the transfer of wealth to the banks because a rocky economy can’t risk losing the TBTFs.
But now, team effort, changing to wealth transfer, has become stealing outright --the income and birthright from Americans to the estates and power of the rulers.
When asked if the Fed wasn’t punishing savers on moral and economic grounds (low rates are brutal for retirees, and so forth), Bernanke had a response.
Here's what he said:
BERNANKE: "On the second concern, my colleagues and I are very much aware that holders of interest- bearing assets, such as certificates of deposit, are receiving very low returns. But low interest rates also support the value of many other assets that Americans own, such as homes and businesses large and small. Indeed, in general, healthy investment returns cannot be sustained in a weak economy, and of course it is difficult to save for retirement or other goals without the income from a job. Thus, while low interest rates do impose some costs, Americans will ultimately benefit most from the healthy and growing economy that low interest rates help promote."
IOW, if you don’t have a job you can’t save, so bug off, and if you did have a job and saved and your balance is being depleted, get a job.
I'm sure the Belgians will pick up the slack on the 3 days without POMO...
I have read from numerous credible sources that FED balance sheet increased by $105 billion in February. Even CNBC admits this. Therefore, it appears as though, while claiming to be tapering, the FED is actually expanding QE in rather dramatic fashion. What am I missing here?
They're merely cutting back the amount they continue to purchase.
AKA growth at a slower rate
you mean the Fed...or the Federal Government?
http://www.youtube.com/watch?v=JacHyPaEwDc
The FED
If that's true then how did the balance sheet expand by $104.8 billion in Feb? How can they expand the balance sheet by that much and purchase at a slower rate? Where is that expanded balance sheet coming from?
Maybe becasue the reinvest the profits or could be just paper gain on their portfolio?
The concept of the 'fungibility of money' would imply that the above distinction is non-existant and irrelevant. Either way, this would seem to be the potential target for one helluva ZH article since we're probably all more informed regarding financial matters than most but still can't explain this. I'm surprised they (ZH) haven't been jumping all over this. I would have a daily update if I were their staff... sometimes, I wonder.
This would be my answer, I would imagine there is some kind of consignment agreement where the Fed retains ownership but Belgium gets a percentage of the interest.
http://www.zerohedge.com/news/2014-03-18/meet-brand-new-and-shocking-thi...
Right, I get that that's what they're claiming but QE last year was supposedly $85 billion per month; and now we're at $55 billion per month, which supports what you say; i.e., 'cutting back the amount they continue to purchase'.
However, their own data shows $105 billion per month for February 2014... this is not cutting back; it's acceleration. And for the record, I remember a ZeroHedge article that showed that, in reality, they averaged $95 billion per month last year. At some point, they will have to explain these massive discrepencies. Gold will get a bid when their hand is forced. I expect that FED balance sheet will increase more this year than it did in 2013 regardless of the FED-speak kabuki theater.
This whole thing is a joke. 19% CRB food inflation since the beginning of the year. They were cracking jokes about food inflation on one of the morning shows this AM - the one with Kelly Rippa and Michael Strahan. MSM is disgusting.
What am I missing here? Ummmm, that everything that gets said or published about financial matters, government activities, government spending, FED activities, FI activities, regulatory 'actions' or Wall Street in general is complete and utter bullshit, 100% designed to make you feel marginally better about getting robbed, raped and left for dead by the 1% who own the fucking country?
I'm sure the annual audit will provide a clear explanation. Oh yeah...
The FED: they have taken everything from us and they call it policy. In that same vein, just what kind of policy did Joseph Stalin have?
Stalin’s policy:
Walter Duranty, the New York Times’ man in Moscow who aided and abetted “one of the world's most prolific mass murderers, knowing all the while what was going on, but refraining from saying precisely what he knew to be true, had swallowed the ends-justifies-the-means-argument hook, line and sinker (just as Congress has swallowed Yellen’s and Bernanke’s policy), loved to repeat, when Stalin’s atrocities (policies) were brought to light:
'You can't make an omelet without breaking a few eggs.'
“Those 'eggs' were the heads of men, women and children, and those 'few' were merely tens of millions.” (Mark Y. Herring Useful Idiot)
Sadly, the current Congress of the United States is composed of hundreds of Durantys, of Fed useful idiots, and the result? Exactly as you say.
I hear you but the term 'bullshit' suggests at least some attempt to deceive. The alternative media outlets should be bombarding the internet with stories about this.
""""a 33% reduction from the 'normal' $45 billion Treasury purchase of last year"""""
but
if they can now "Invest" at 40/45 x each $1, instead of 25/30 x $1, its just another painted picture
OT: flight 370 message last week from Diago Garcia.
http://intellihub.com/freelance-journalist-hijacked-flight-370-passenger...
The idea that exif data is uneditable is pure idiocy. So...
Important 5 minutes= watch from the 16:30 minute mark for about 5 minutes
and then you can scroll down to hear what Able Danger says re: Diego Garcia
Look up the basen report on fed site, still like my privates used to look like when I was a younger man..straight up
and all this fucking fraudulent shannigans would be rendered irrelevant if a significant portion of this country's people enlightened themselves as to the nature of this debt based currency paradigm we have all slaved under and vacated the MoneyChangers ponzi scheme into real money - Physcial Gold and especialy Silver...
unti then, the ass raping they r getting is deserved and will continue....
What 'they're' getting now is nothing compared to what's in store after the wealth transfer's complete.
There's a conspiracy of convenience right now between the top end of society in the west and the rising powers of the East, and their common target is the accumulated middle class wealth of the west. And they're 'buying it' with meaningless paper promises. By the time the majority figures out the scam it's going to be WAY to fucking late to do anything.
Diana Furachtgott-Roth explains, with facts, how seniors are not going to get back what they’ve been taken for by Bernanke’s and Yellen’s ZIRP and a bought-off Congress.
Delineating how the Fed’s artificially low-interest-rate policy does more harm than good, Furachtgott-Roth writes in How the Fed is hurting seniors that “the idea of a system in which the returns to frugal saving are zero with certainty, while the returns to investing money in risky high-yield stocks and bonds — a form of gambling — often pays off, is troubling, to say the least…”
Excerpts:
This situation disproportionately affects seniors. According to data from the Census Bureau, seniors ages 65 and over made an average of $3,239 from interest in 2012, and an average of $32,849 in total income. Thus, just under 10% of their income came from interest. In contrast, people ages 25 to 64 earned an average of $1,356 annually from interest, and $47,364 in total income. Less than 3% of income came from interest for people ages 25 to 64.
“McKinsey concluded in a November 2013 report that from 2007 to 2012, defined-benefit pension plans and guaranteed-rate life insurance plans lost $270 billion of income due to the Fed’s low-interest-rate policies because they have far more interest bearing assets than liabilities. McKinsey estimated that American households have lost $360 billion of income. On average, American households are net savers.
The big winners of the Fed’s policies were the U.S. government, which gained about $900 billion, and non-financial corporations, which gained $310 billion.
McKinsey calculated that households headed by people under the age of 45 are net debtors and so have benefitted from lower rates… The losers are the seniors, especially household heads aged 75 and over, who lost $2,700 a year in income. Those aged between 65 and 74 lost $1,900.
http://www.marketwatch.com/story/how-the-fed-is-hurting-seniors-2014-03-21
When interest rates do rise, savers and pensioners who lost on ZIRP will be hit again with rapidly rising prices, a result of Fed inflation competing with their devalued and depleted stash. As this author says: “Seniors always tell their children they know better — now they should tell Janet Yellen to let those rates rise.”
Still "short"...Still waiting!!
barely, hanging on...I refuse to give in to the CRIMINALS!!