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Guest Post: Charting The Federal Reserve's Assets - 1915-2012

Tyler Durden's picture


Submitted by Thomas Gresham of Gresham's Law,

Here we present a history of the Fed in charts. As you’ll surely glean from the below — the Fed has degenerated from a by and large passive institution (dealing only in high-quality self-liquidating commercial paper and gold) to an active pursuant of junk, an enabler of wars, a ‘benevolent’ combatant of the depressions of its own creation, a central planner of employment & prices and of course a forgiving friend to inconvenient market follies.

The Fed's Assets from 1915 to 2012:

1915 to 1925

1925 to 1935

1935 to 1945

1945 to 1955

1955 to 1965

1965 to 1975

1975 to 1985

1985 to 1995

1995 to 2005

2005 to 2012


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Sun, 02/12/2012 - 20:45 | 2152048 brewing
brewing's picture


Sun, 02/12/2012 - 20:48 | 2152065 trav7777
trav7777's picture

is that $30 POG spike on kitco real?

Sun, 02/12/2012 - 20:51 | 2152071 Obadiah
Obadiah's picture

WTH is a POG?  just askin

Sun, 02/12/2012 - 20:52 | 2152079 RmcAZ
Sun, 02/12/2012 - 20:54 | 2152086 Obadiah
Obadiah's picture

thanks but POG spike


Are they selling us plastic money now?  WTF



Sun, 02/12/2012 - 21:30 | 2152192 Michael
Michael's picture

What if the assets of the Fed are only worth half what they state their worth?

Federal Reserve = Bag Holders. HA Ha.

Sun, 02/12/2012 - 21:50 | 2152244 atomic180
atomic180's picture

Time heals all wounds...

Sun, 02/12/2012 - 23:03 | 2152365 flacon
flacon's picture

Remember, "Deficits don't matter". 

Until they do.


In that last chart, the legend says "Gold Reserves", but by golly I don't even see that bright yellow represented on that chart. Perhaps all they need to do is REVALUE GOLD by a couple orders of magnitude and the problem will be solved. That is... if they even have any gold... 

Sun, 02/12/2012 - 23:36 | 2152452 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The graph looks like someone wanted to one up parabolic

Mon, 02/13/2012 - 08:11 | 2152898 Harlequin001
Harlequin001's picture

One look at that chart and you can see that despite anything less than 99.9999% deflation/default/collapse of credit assets MUST result in higher gold. Can't wait till they knock at least three zeros off the dollar price of it, just like Zim.

You Americans must be absolutely fucking loaded with all those assets. $1 million/ounce is obviously just a stop off...

Mon, 02/13/2012 - 10:37 | 2153293 FEDbuster
FEDbuster's picture

FED = Zombie Bank

FED = Deficit Enabler

Reserve fiat currency (backed by US military) makes it all possible.  When the world says "no mas" to the dollar, America will dive head first into the shit abyss.

Sun, 02/12/2012 - 23:36 | 2152453 trav7777
trav7777's picture

"they" can't just revalue gold except by printing a ton of money

Sun, 02/12/2012 - 23:56 | 2152496 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

What interests me is the selloff of platinum, the spike in the POG, but also silver didn't budge.  Maybe you are right in thinking gold will continue to have precedent over the other PMs.

Mon, 02/13/2012 - 00:32 | 2152537 lasvegaspersona
lasvegaspersona's picture

the POG printer was stuck...just gotta know where to hit it....there coming back down to 'where it is supposed to be'...


Mon, 02/13/2012 - 05:06 | 2152801 Hobbleknee
Hobbleknee's picture

As I've stated a few times before, Obama sold all the gold in Ft Knox on his last trip to India.  That's why Obama took 34 warships with him (to secure the delivery) and built a 1 km-long, bomb-proof tunnel (to conceal the convoy delivering the gold) that lead to the museum which houses India's strongest and most heavily guarded vault.


Mon, 02/13/2012 - 07:57 | 2152902 Harlequin001
Harlequin001's picture

What a nut job...

Mon, 02/13/2012 - 18:15 | 2155398 Hobbleknee
Hobbleknee's picture

Me or Obama? :D

Mon, 02/13/2012 - 01:01 | 2152570 DoChenRollingBearing
DoChenRollingBearing's picture

I write up my "Review of Barron's, Dated 13 February 2012" there at my blog.  I include some obervations about the Fed's Balance sheet, a mere $26 billion away from $3 trillion...  It is going to be fun to see how the Fed keeps really quiet about crossing that figure (or else they'll just lie).

Barron's is a big publication, so I review a number of other articles as well.  Drop me a gmail @ my name for the link or Google it.

Hey, it's late, and you're not doing anything better, so go check it out!

Mon, 02/13/2012 - 12:02 | 2153642 Phil Free
Phil Free's picture

.Whew.  I almost thought you said, "TIM heals all wounds..." 


Sun, 02/12/2012 - 21:55 | 2152257 JohnG
JohnG's picture

Taxpayers = Bagholders.

Ha Ha. Not.

Sun, 02/12/2012 - 23:05 | 2152377 Michael
Michael's picture

The Fed is a private corporation silting their own throats with toxic waste, HA ha.

Sun, 02/12/2012 - 23:16 | 2152407 economics1996
economics1996's picture

Leveraged 57-1 last time I checked.

Sun, 02/12/2012 - 23:41 | 2152466 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Hi, could we place an order for 'other assets'?  Just throw them in a bag and leave them out back, we'll swing by to pick them up later.  Thanks.

Sun, 02/12/2012 - 23:41 | 2152468 AldousHuxley
AldousHuxley's picture

fed and ECB will soon replaced by a higher authority:


IMF over europe and africa

world bank over americas and asia

BIS over switzerland


Fed knew they had to replace one bubble with another. NASDAQ tech bubble with housing bubble. nothing like housing bubble to kick off consumption.

"Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."

Published: August 02, 2002



Running Out of Bubbles"


By PAUL KRUGMAN Published: May 27, 2005



Sun, 02/12/2012 - 23:45 | 2152476 economics1996
economics1996's picture

"Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble."


Mon, 02/13/2012 - 00:00 | 2152504 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The shit hawks are circling, Randy.

Mon, 02/13/2012 - 01:18 | 2152614 palmereldritch
palmereldritch's picture

I couldn't green arrow because of the a classic clip and a helluva drink take will have to do

Mon, 02/13/2012 - 07:47 | 2152889 McNoob
McNoob's picture

Not to worry. The solution's quite simple really...

Nuke everyone and blame it on the Aliens. That way 'Bama can fund a new federal agency to fight against them with ZIPA4EVA fiat printing to infinity.

Mon, 02/13/2012 - 09:10 | 2153038 TheFourthStooge-ing
TheFourthStooge-ing's picture

I remember when the Onion was a humor site, before they switched to hard news.


Mon, 02/13/2012 - 10:41 | 2153331 FEDbuster
FEDbuster's picture

"Little pieces of paper are the next big thing," speculator Joanna Nadir, of Falls Church, VA said. "Just keep telling yourself that. If enough people can be talked into thinking it's legitimate, it will become temporarily true."


BTW the Onion didn't switch to hard news, the economy turned into a joke.

Mon, 02/13/2012 - 00:38 | 2152544 Archon7
Archon7's picture

... and now they're creating an "asset bubble" to replace the housing bubble.

Mon, 02/13/2012 - 05:58 | 2152852 ChrisFromMorningside
ChrisFromMorningside's picture

Right, a lot of us tend to underestimate how far TBTP can kick the can. They might bring down the Fed themselves and replace with some new central planning authority. 90% of the populace would probably accept it without question.

Mon, 02/13/2012 - 07:20 | 2152877 DutchR
DutchR's picture

So they could declare bankruptcy, right.


Take the debt op a few notches and then POOF.


The Pres can than coin new money (regarding the constitution) and we live happily ever after......

Mon, 02/13/2012 - 12:38 | 2153829 TeresaE
TeresaE's picture

"their own throats"

"they" is US.

You and me

When "they" slit "their" throats, WE pay with reduced purchasing power of mainly foreign products with the exception of government-mandated expenses that are growing by the milli-second.

They are slitting our throats.  "Their" throats will be safe outside the borders.

(Fiat) Bank on it.

Sun, 02/12/2012 - 21:33 | 2152203 AldousHuxley
AldousHuxley's picture


fraudulent inducement:

   banksters pushing debt while failing to disclose that they know inside information on backroom deals where you won't be able to pay it back (material omission).


"Vast mortgages originated after 1996 were fradulently induced" - former Secretary of Housing


only thing stopping is that pension funds own these toxic this is boomers protecting pensions while outsourcing jobs and selling bad debt (home, auto) to younger generation of Americans.

Sun, 02/12/2012 - 22:05 | 2152272 Caviar Emptor
Caviar Emptor's picture

It was East vs West. Then Developed vs Emerging. From here it will just be Haves vs Have-Nots, even within the West/East and Developed/Emerging groups. 

Sun, 02/12/2012 - 22:52 | 2152355 AldousHuxley
AldousHuxley's picture

It will be military + wall st. + corporate farms + global government versus everyone else.


even if you "have" tons of money, government can tell you you owe tons in taxes and take it all away.

even if you own tons of farm land, corporate farms can outlaw you from reusing your seed and must by from them

even if you have done nothing wrong, military will drop a bomb on your ass and detain you forever because you are a suspected truth teller (aka. "'terrorist")

even if you have "representation", lobbyst will have your congress pass laws against you.


It will be those who control vs those who don't have control over currency + energy + food + military

Sun, 02/12/2012 - 23:11 | 2152390 Caviar Emptor
Caviar Emptor's picture

Exactly Aldous. 

 I've been citing (below) from an article  published today that echoes your thoughts and shows that, already, many are taking it very seriously and going to the next level: 2nd and 3rd passports from countries that offer greater freedoms and tax haven status. And you'd be surprised who the countries are and who is buying citizenship. This is going to be a big issue

Mon, 02/13/2012 - 05:06 | 2152826 Hobbleknee
Hobbleknee's picture

Correct, except change all instances of "will be" to "is".

Mon, 02/13/2012 - 06:04 | 2152854 ChrisFromMorningside
ChrisFromMorningside's picture

>>even if you own tons of farm land, corporate farms can outlaw you from reusing your seed and must by from them


100 years ago this was known as 'peonage' or 'debt bondage.' Today it's 'agribusiness.'

Mon, 02/13/2012 - 12:41 | 2153847 TeresaE
TeresaE's picture

nicely done.

Only you missed the largest catagory of debt that boomers have convinced X'ers and millenials to buy into:

College loan debt.  Larger than credit cards.

Yet over 40% of all jobs "created" (and saved!) have been minimum wage-ish and part-time.


At least they got them theirs.


Mon, 02/13/2012 - 02:34 | 2152727 Hugh G Rection
Hugh G Rection's picture

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



Mon, 02/13/2012 - 03:25 | 2152770 AgShaman
AgShaman's picture


They should have included a map of smallish islands off the coast of Georgia

Sun, 02/12/2012 - 20:54 | 2152088 francis_sawyer
francis_sawyer's picture

price of gold

Sun, 02/12/2012 - 20:58 | 2152108 fourchan
fourchan's picture

it was for somebody

Sun, 02/12/2012 - 20:58 | 2152106 hack3434
hack3434's picture


Sun, 02/12/2012 - 20:59 | 2152111 Poor Grogman
Poor Grogman's picture

Just a glitch in the matrix,

Define real?

Sun, 02/12/2012 - 21:32 | 2152198 q99x2
q99x2's picture

Its is

Sun, 02/12/2012 - 22:13 | 2152284 JohnG
JohnG's picture

Not on my screens.

$2 gap up at open, already filled.

Sun, 02/12/2012 - 22:21 | 2152301 Mr. Mandelbrot
Mr. Mandelbrot's picture

"Real" = another giant just locked in generations of wealth . . .

Mon, 02/13/2012 - 00:35 | 2152536 i_fly_me
i_fly_me's picture

<deleted> Mr. Grogman beat me to it.

Sun, 02/12/2012 - 21:04 | 2152125 vast-dom
vast-dom's picture

all other assets = ILLEGAL derivatives and other toxic assets as purchased from insolvent banks = PURE FRAUD and policy that GOES AGAINST ROLE OF FED!

Sun, 02/12/2012 - 21:46 | 2152209 atomic180
atomic180's picture

The Fed can do whatever the F they please that's why their an independant authority and no one has been as proactive in their history as Ben...he's either bold and truely brilliant or a madman...and totally legal cleaning up the MBS mess that JPM, GS, etc created...

Sun, 02/12/2012 - 21:58 | 2152259 JohnG
JohnG's picture

You, sir/madam, are an idiot.

Tyler, please consider a way to ignore certain users.  Get Sac on it....

Sun, 02/12/2012 - 22:10 | 2152281 agNau
agNau's picture

He understands the depression, and for his legacy is attempting to improve on it.

Sun, 02/12/2012 - 23:12 | 2152392 atomic180
atomic180's picture

Time will tell...

Sun, 02/12/2012 - 22:40 | 2152337 SilverIsKing
SilverIsKing's picture

Proactive like Hitler was proactive.

Sun, 02/12/2012 - 23:14 | 2152402 atomic180
atomic180's picture

Small minds...

Sun, 02/12/2012 - 21:37 | 2152210 Bansters-in-my-...
Bansters-in-my- feces's picture


Fuck You's PPT.

Sun, 02/12/2012 - 23:08 | 2152385 midtowng
midtowng's picture

Nothing to see here. Move along.

Mon, 02/13/2012 - 00:45 | 2152555 Esculent 69
Esculent 69's picture

Could  someone please explain to me why Tyler has a Obama for America advertisement. All this talk for Ron Paul and how the republicans and deomcrats are all the same and how Obama is destroying the economy, but yet you take $$$ from them.  Little conflict of interest or strategic planning on behalf of our dear leader.  What gives?

Mon, 02/13/2012 - 01:04 | 2152574 RockyRacoon
RockyRacoon's picture

You don't know how those ads work, do you?  My ad was a Ron Paul ad.  You get the ads that follow your own web browsing.   Kinda, you get what you surf for.

Mon, 02/13/2012 - 07:51 | 2152894 Moe Howard
Moe Howard's picture

RockyRacoon! Calling a spade a spade.

Mon, 02/13/2012 - 09:14 | 2153051 TheFourthStooge-ing
TheFourthStooge-ing's picture

The computers at the SEC get ads with the goatse picture.

[Warning: do NOT search for the goatse picture if you don't know what it is; what is seen cannot be unseen.]


Mon, 02/13/2012 - 09:11 | 2153040 Milk Monk
Milk Monk's picture

What ads?

/Adblock Plus

Mon, 02/13/2012 - 03:07 | 2152755 BorisTheBlade
BorisTheBlade's picture

I bet size of the Fed balance sheet is 95% correlated with price of gold in dollars and inversely correlated with purchasing power of USD.

Sun, 02/12/2012 - 20:46 | 2152050 Bindar Dundat
Bindar Dundat's picture

k=Looks bullish for red ink!

Sun, 02/12/2012 - 20:46 | 2152054 LongSoupLine
LongSoupLine's picture



Control the money and you'll control everything else.  This is what turns absolute power into absolute destruction.

Sun, 02/12/2012 - 20:47 | 2152056 Sockeye
Sockeye's picture

So, basically, the Fed IS the economy.

Sun, 02/12/2012 - 20:48 | 2152067 trav7777
trav7777's picture

no...but it is making things appear nominally profitable which aren't.

Sun, 02/12/2012 - 23:10 | 2152389 Ropingdown
Ropingdown's picture

As Hank Paulson said, "the banking system is the circulatory system of the economy and must be saved."  You could say that finance grew to be a giant fee-generating skim on the real economy, a 'stabilizer' (didn't you notice?), and so the blood of the economy apparently ended up largely under the banks', fed's, control.  The blood is in their veins.  You just get to plug into some capillaries and breath, feed, for a fee, if you play nice.  People are watching the Grammy's tonight.  Everything's cool.  What's the big deal?  Move along.

Sun, 02/12/2012 - 20:47 | 2152060 Clint Liquor
Clint Liquor's picture

Only God and Ben Bernanke can create something from nothing.

Sun, 02/12/2012 - 22:14 | 2152290 JohnG
JohnG's picture

My wife can make mountains from molehills.

Sun, 02/12/2012 - 22:42 | 2152340 SilverIsKing
SilverIsKing's picture

Hey, I know someone just like her.

Sun, 02/12/2012 - 23:06 | 2152381 flacon
flacon's picture

Don't tell me we are all married to the same woman! God NO!

Mon, 02/13/2012 - 12:45 | 2153870 TeresaE
TeresaE's picture

That was funny.

My husband makes molehills out of mountains.

Why worry when his stock is paying a 2% dividend (minus 1% broker, minus 15% tax, minus 4% Michigan tax and then the freaking accountant to keep it all straight).


Sun, 02/12/2012 - 20:47 | 2152061 Death and Gravity
Death and Gravity's picture

2005-2012: As the Germans say:



Sun, 02/12/2012 - 20:48 | 2152064 RmcAZ
RmcAZ's picture

These charts look bullish.

Sun, 02/12/2012 - 20:59 | 2152113 Cognitive Dissonance
Cognitive Dissonance's picture

"Are those Federal Reserve Assets in your pocket or are you just glad to see me?" - Mae West

Sun, 02/12/2012 - 20:50 | 2152068 Obadiah
Obadiah's picture

Awesome stuff!!!!  I love pictures of death and destruction!

Sun, 02/12/2012 - 20:51 | 2152072 JPM Hater001
JPM Hater001's picture

This all stinks of the Rothchilds.  Damn you Julia!!!

Sun, 02/12/2012 - 21:01 | 2152118 disabledvet
disabledvet's picture
just in case you thought what was going on was something new....

Sun, 02/12/2012 - 20:52 | 2152078 slewie the pi-rat
slewie the pi-rat's picture

ecstatic fuking convulsions, here, BiCheZ!

Sun, 02/12/2012 - 20:53 | 2152084 steelrules
steelrules's picture

Interesting charts especially the first one, anyone know what "all other assets" is comprised of?

Sun, 02/12/2012 - 20:56 | 2152093 Eally Ucked
Eally Ucked's picture

Bigger or smaller pieces of shit

Sun, 02/12/2012 - 21:38 | 2152098 francis_sawyer
francis_sawyer's picture

"anyone know what "all other assets" is comprised of?"

the stuff you bend over &  KISS GOODBYE when your plane is about to crash

Sun, 02/12/2012 - 20:57 | 2152102 Manthong
Manthong's picture

Unmarketable crap and smoke, soon to be more unmarketable crap and smoke.

Sun, 02/12/2012 - 21:05 | 2152129 The4thStooge
The4thStooge's picture

Underwater mortgages, bits of string and duct tape (for holding the ponzi together), PIIGS bonds, and the entire 6-disc Star Wars collectors edition DVD box set with bonus footage of Natalie Portman giving Jar-Jar a BJ.

Sun, 02/12/2012 - 21:46 | 2152232 Ned Zeppelin
Ned Zeppelin's picture

On all three of his sex organs?

Mon, 02/13/2012 - 03:17 | 2152761 StychoKiller
StychoKiller's picture

Women say they're better at multitasking...

Mon, 02/13/2012 - 03:18 | 2152762 StychoKiller
StychoKiller's picture

Women say they're better at multitasking...

[Edit:]  Apparently I even have trouble with simple pushbuttons! :>D

Mon, 02/13/2012 - 12:48 | 2153880 TeresaE
TeresaE's picture

don't forget Beanie Babies, Bradford/Franklin Mint Plates and Precious Moments figurines.  Ya' know, all the great American investments.

Sun, 02/12/2012 - 20:54 | 2152085 SilverRhino
SilverRhino's picture

The next few years are going to be very interesting.

Mon, 02/13/2012 - 11:37 | 2153533 Phil Free
Phil Free's picture

To quote the reputed Chinese proverb/curse:  "May you live in interesting times".


Some call it a proverb.  Some, a curse.  I guess we are lined up to find out which ...


Sun, 02/12/2012 - 20:54 | 2152087 Dermasolarapate...
Dermasolarapaterraphatrima's picture
The Monetary Elite vs. Gold's Honest Discipline  


Vincent R. LoCascio (Author)

Typically, people take our monetary unit for granted. While other standard such as year, pound, inch, etc. are well defined, the "dollar" is an unspecified unit of measure. As recently as 75 years ago, a dollar was defined as 1/20.67th of an ounce of gold and a Federal Reserve Note stated on its face: Pay to the bearer on demand. These words no longer appear. A $20 bill, therefore, is an unspecified obligation of the U.S. Treasury that says in effect:

The U.S. Treasury owes 20 "somethings" to no one in particular in no particular timeframe!

This book clearly lays out the implications of this corruption of the integrity of our monetary unit.

Sun, 02/12/2012 - 21:14 | 2152092 AssFire
AssFire's picture

So it looks like everything since 1972 has been fake.

No surprise Nixon's fake money fiat policy ahh, I mean leaving the gold standard was the final straw. Must have been nice collecting interest on all that fake money for 40 years. Then there is the theft through inflation thing as well.

I hope the millionaire politicians and billionaire bankers burn in hell- after they are killed. I am an atheist, but I would pray for a hell to be established just for these bastards.

Notice the gold reserves virtually disappear by 1995 because they are so dwarfed by the fake shit.

Sun, 02/12/2012 - 21:18 | 2152166 lynnybee
lynnybee's picture

So it looks like everything since 1972 has been fake.   ...that's exactly what i was trying to explain to my friends & family!   except, i told them that basically, the past 100 years, the 20th century has not been normal, that the whole century was abnormal because of the Federal Reserve Bank.    (you know my sad story, they just laugh at me.)    History books will call it the "century of inflation."

Sun, 02/12/2012 - 21:23 | 2152176 AssFire
AssFire's picture

(the original source)

Those same government bastards who confiscated the gold for the 1933 "reset' are gonna have a hell of a time if we all get physical gold and lead.

Sun, 02/12/2012 - 21:49 | 2152237 Ned Zeppelin
Ned Zeppelin's picture

You'll need the lead, since the Fed and TPTB will never allow holders of physical gold to profit by their prescience.  The primacy of fiat FRNs will be enforced at gunpoint, if need be.  Whatever it takes.  Understand the criminal mind.

Mon, 02/13/2012 - 08:00 | 2152903 Moe Howard
Moe Howard's picture

1972 was the same time they started to push direct deposit to banks, to eliminate cash payment for wages.

Mon, 02/13/2012 - 09:38 | 2153130 Arrowhead
Arrowhead's picture

By looking at the last chart, I believe that if we drill a well at QE1 we could tap a huge reseve of that green stuff below.

Sun, 02/12/2012 - 21:32 | 2152202 donsluck
donsluck's picture

Finally, someone who doesn't summon "God"!

Mon, 02/13/2012 - 06:51 | 2152870 Shigure
Shigure's picture


Didn't Kyle Bass say that Capitalism without bankruptcy is like Christianity without Hell?

Maybe the living hell of bankruptcy would be a more fitting punishment?

Mon, 02/13/2012 - 12:50 | 2153888 TeresaE
TeresaE's picture

"...I hope the millionaire politicians and billionaire bankers burn in hell- after they are killed. I am an atheist, but I would pray for a hell to be established just for these bastards..."

ditto, and +10

Sun, 02/12/2012 - 20:56 | 2152097 Downtoolong
Downtoolong's picture

Step functions aren't good for stability.

Mon, 02/13/2012 - 00:44 | 2152553 seek
seek's picture

Yeah, they're actually used as a test to find unstable systems. Stable systems have a damped impulse response, while unstable systems gyrate wildly before hitting system limits.

I guess the Fed is going to prove which class the economy is in. Lulz.

Mon, 02/13/2012 - 01:09 | 2152578 RockyRacoon
RockyRacoon's picture

Reminds me of a toy top.  It spins nicely when started and then goes all wobbly as it loses energy.  Mine would finally skitter violently and end up under the farthest piece of unmovable furniture.   Yeah, I'm that old.

Sun, 02/12/2012 - 20:57 | 2152103 Bluntly Put
Bluntly Put's picture

The Fed: lender, buyer, and economy of last resort.

Sun, 02/12/2012 - 21:07 | 2152104 ziggy59
ziggy59's picture

The Bankster Gangstas number one's The Golden Rule ...he with the Gold, makes the Rules.. Nuf' said

Sun, 02/12/2012 - 21:00 | 2152110 sasebo
sasebo's picture

And this is all stuff bought from the banks with funny money. At par. And the banks are using the funny money to keep the stock market from crashing.

Sun, 02/12/2012 - 21:01 | 2152119 steelrules
steelrules's picture


I'd say at least 10,000 points on the DOW.

Sun, 02/12/2012 - 21:00 | 2152114 max2205
max2205's picture

Can we get this in log scale please

Sun, 02/12/2012 - 22:01 | 2152267 JohnG
JohnG's picture

Not frightened enough?

Sun, 02/12/2012 - 21:00 | 2152115 AUD
AUD's picture

the Fed has degenerated from a by and large passive institution (dealing only in high-quality self-liquidating commercial paper and gold)

Great post. It needs to be emphasised that the original charter of the Fed & central banking as it was originally conceived in Europe was not to monetise the debt of the government but real bills redeemable in gold.

Unfortunately, it hasn't worked out that way as governments are the first to renege on their debts, thus requiring 'assistance' from an irredeemable central bank.

Sun, 02/12/2012 - 21:07 | 2152130 disabledvet
disabledvet's picture

indeed...and we have degenerated into the "which governments" phase now. this also goes by the term "war" for those who are uninitiated. and since we cannot fight but must be told to in order to--we have music instead:

we're gonna miss you Whitney. They couldn't keep you down either.

Sun, 02/12/2012 - 21:18 | 2152149 AUD
AUD's picture

And looking at these graphs, how anyone cannot comprehend the credit bubble that is the active pursuant of junk, an enabler of wars, a ‘benevolent’ combatant of the depressions of its own creation, a central planner of employment & prices and of course a forgiving friend to inconvenient market follies, is beyond me.

Of course governments all around the globe are doing their level best to cloud the judgement of the masses but there are many who are happy to play the game. Must be some facet of human nature, maybe we are all sadomasochists or something.

Sun, 02/12/2012 - 21:03 | 2152121 Obadiah
Obadiah's picture

I dont see an entry for tungsten

Sun, 02/12/2012 - 21:09 | 2152140 The4thStooge
The4thStooge's picture

Other assets.

Sun, 02/12/2012 - 21:16 | 2152158 a growing concern
a growing concern's picture

At least there will be plenty of material for armor-piercing rounds.

Sun, 02/12/2012 - 21:26 | 2152185 disabledvet
disabledvet's picture

did someone say "worthless tungsten"?: here's guy who found both some silver and some tungsten at a flea market! about a paper weight!

Sun, 02/12/2012 - 21:04 | 2152124 TapperIsTicked
TapperIsTicked's picture

Ride da wave dudes. Serfs up.

Sun, 02/12/2012 - 21:04 | 2152126 Seasmoke
Seasmoke's picture

Tiny bubbles (tiny bubbles)
In the wine (in the wine)
Make me happy (make me happy)
Make me feel fine (make me feel fine)

Tiny bubbles (tiny bubbles)
Make me warm all over
With a feeling that I'm gonna
Love you till the end of time

So here's to the golden moon
And here's to the silver sea
And mostly here's a toast
To you and me

Sun, 02/12/2012 - 21:05 | 2152131 hack3434
hack3434's picture

So what's with the sale of short term and long term securities right before the crash?

Sun, 02/12/2012 - 21:08 | 2152138 Amish Hacker
Amish Hacker's picture

I'm looking at that headwall on the chart in Sept. 08, when Lehman bit the dust, and thinking that we're about to see another vertical jump just like that, when Greece (Portugal, Italy, etc.) goes over the falls. LTRO to infinity! (Send the bill to the sound-asleep US taxpayer.)

Sun, 02/12/2012 - 21:15 | 2152154 YesWeKahn
YesWeKahn's picture

People acquire assets by buying them, however the fraud reserve system simply steal them because they don't pay them with real money.

Sun, 02/12/2012 - 21:27 | 2152170 The Watchman
The Watchman's picture

E X P O N E N T I A L   E X P L O S I O N    B I T C H E Z

Sun, 02/12/2012 - 21:51 | 2152235 francis_sawyer
francis_sawyer's picture

Bernanke Final exam at Princeton:

Quiz Problem = Expand the use of the word 'Economy'

Bernanke's answer:

E  C   O     N        O             M                     Y



Sun, 02/12/2012 - 21:52 | 2152249 francis_sawyer
francis_sawyer's picture


Sun, 02/12/2012 - 22:17 | 2152294 ebworthen
Mon, 02/13/2012 - 02:42 | 2152732 williambanzai7
williambanzai7's picture


Sun, 02/12/2012 - 21:58 | 2152260 TapperIsTicked
TapperIsTicked's picture

O my.

Sun, 02/12/2012 - 21:21 | 2152172 Gamma735
Gamma735's picture

Past performance is no guarantee of future profits.  All investments involve risk and loss of principal is possible.  HAHAHAHAHAHAHA!

Sun, 02/12/2012 - 21:23 | 2152178 Archon7
Archon7's picture

What your looking at is a classic systemic solvency crisis.  Ask yourself what it would take for the Fed to divest itself of those assets?  First of all there are no buyers, and secondly, even if there were buyers, the "assets" are cr@p.  Kinda like walking into a junkyard where everything is valued at retail prices.  Thirdly, even if the Fed's assets weren't cr@p, and there were buyers, it would take at least 10 or 20 years to sell it all off.

Sun, 02/12/2012 - 21:31 | 2152194 AUD
AUD's picture

You're saying the Fed is insolvent? That its credit is worthless?

Isn't that an offence under some anti-terrorist legislation?

Sun, 02/12/2012 - 22:31 | 2152323 jackinrichmond
jackinrichmond's picture

..and it could be labelled  'anti-semetic' 

Sun, 02/12/2012 - 21:24 | 2152180 Bansters-in-my-...
Bansters-in-my- feces's picture


When are you's dismantling the building...???

We are waiting.

Sincerly...The World....

Sun, 02/12/2012 - 21:25 | 2152181 Reese Bobby
Reese Bobby's picture

A skeptic could suspect TGBC has been following a long-term plan for Centuries.

Sun, 02/12/2012 - 21:32 | 2152201 Fix It Again Timmy
Fix It Again Timmy's picture

I've got a 1940 nickel next to a 2008 nickel - guess which one looks like "carnival" money?

Sun, 02/12/2012 - 21:50 | 2152228 WmMcK
WmMcK's picture

Keep them both.  The 2013 may not even be nickel.

Sun, 02/12/2012 - 22:04 | 2152268 slewie the pi-rat
slewie the pi-rat's picture

the mint has a plan to issue the 2014 nickel as a promissory note for a 2015 penny

collectors are interested but want the note to have negative interest, too

apparently, this will make 5-cent psychiatry available to all!

Sun, 02/12/2012 - 22:05 | 2152270 JohnG
JohnG's picture



Weigh an 82 penny against a 2010.

Exactly 0,50 grams lighter on the 2010.

Even just the fucking PENNY is being debased.

Sun, 02/12/2012 - 23:36 | 2152446 Stevious
Stevious's picture

Hey, at least it's zinc...scrap value of about 60 cents a pound....   In five years a single copper plated zinc penny may have a greater purchasing power than the $100 bill.  There are many episodes of hyperinflation where that ratio held true. 


Consider that four quarters from my paper route in 1964 today can be sold for $23.14.  Therefore looking at silver, one of today's dollar (in dimes or quarters) as compared to one  from 1964 or earlier has lost 95.7% of its purchasing power.  What is really amazing is that nobody seems to have noticed.


Canada just announced that the $1 and $2 coin will no longer be made of nickel; future coins will be plated steel.  It's only a matter of time before our nickels are simply worthless plated steel.

Mon, 02/13/2012 - 08:04 | 2152905 Moe Howard
Moe Howard's picture

What do you mean, nobody noticed? Gasoline is 15 cents a gallon in 90% silver legal tender face value.

Sun, 02/12/2012 - 21:35 | 2152206 caerus
caerus's picture

“The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. ”

 Thomas Jefferson

Sun, 02/12/2012 - 23:35 | 2152449 gjp
gjp's picture

It's true, but Jefferson didn't say that.


Sun, 02/12/2012 - 23:45 | 2152474 Archon7
Archon7's picture

Eh, even if he didn't say that, he said stuff like that.  It's not as if he outright lied about his beliefs and intentions while the news media of his day just ignored it or covered it up for him.  I'll take verisimilitude over blatant falsehood any day...

Mon, 02/13/2012 - 00:43 | 2152552 caerus
caerus's picture

yes...that quote is's another

"The financial system [...] has been turned over to the Federal Reserve Board. That board administers the finance system by authority of [...] a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money."

- Rep C.A. Lindbergh Sr

Sun, 02/12/2012 - 21:41 | 2152217 MFL8240
MFL8240's picture

In a few short months the jewish banksters will have yet another notch in their belt of countries destroyed. 

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