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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 | Link to Comment brewing
brewing's picture

melt-up...

Sun, 02/12/2012 - 20:48 | Link to Comment trav7777
trav7777's picture

is that $30 POG spike on kitco real?

Sun, 02/12/2012 - 20:51 | Link to Comment Obadiah
Obadiah's picture

WTH is a POG?  just askin

Sun, 02/12/2012 - 20:52 | Link to Comment RmcAZ
Sun, 02/12/2012 - 20:54 | Link to Comment Obadiah
Obadiah's picture

thanks but POG spike

 

Are they selling us plastic money now?  WTF

 

hehe

Sun, 02/12/2012 - 21:30 | Link to Comment 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 | Link to Comment atomic180
atomic180's picture

Time heals all wounds...

Sun, 02/12/2012 - 23:03 | Link to Comment 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 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The graph looks like someone wanted to one up parabolic

Mon, 02/13/2012 - 08:11 | Link to Comment 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 | Link to Comment 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 | Link to Comment trav7777
trav7777's picture

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

Sun, 02/12/2012 - 23:56 | Link to Comment 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 | Link to Comment 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'...

fixed

Mon, 02/13/2012 - 05:06 | Link to Comment 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.

/Mike

Comparegoldandsilverprices.com

Mon, 02/13/2012 - 07:57 | Link to Comment Harlequin001
Harlequin001's picture

What a nut job...

Mon, 02/13/2012 - 18:15 | Link to Comment Hobbleknee
Hobbleknee's picture

Me or Obama? :D

Mon, 02/13/2012 - 01:01 | Link to Comment 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 | Link to Comment Phil Free
Phil Free's picture

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

 

Sun, 02/12/2012 - 21:55 | Link to Comment JohnG
JohnG's picture

Taxpayers = Bagholders.

Ha Ha. Not.

Sun, 02/12/2012 - 23:05 | Link to Comment 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 | Link to Comment economics1996
economics1996's picture

Leveraged 57-1 last time I checked.

Sun, 02/12/2012 - 23:41 | Link to Comment 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 | Link to Comment 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.

http://www.nytimes.com/2002/08/02/opinion/dubya-s-double-dip.html

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

By PAUL KRUGMAN
Published: August 02, 2002

 


"

Running Out of Bubbles"

http://www.nytimes.com/2005/05/27/opinion/27krugman.html

 

By PAUL KRUGMAN Published: May 27, 2005

 

 

Sun, 02/12/2012 - 23:45 | Link to Comment economics1996
economics1996's picture

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

lol 

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

The shit hawks are circling, Randy.

Mon, 02/13/2012 - 01:18 | Link to Comment palmereldritch
palmereldritch's picture

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

http://www.youtube.com/watch?v=Qg_belm6apc

Mon, 02/13/2012 - 07:47 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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."

Classic!

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

Mon, 02/13/2012 - 00:38 | Link to Comment Archon7
Archon7's picture

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

Mon, 02/13/2012 - 05:58 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment AldousHuxley
AldousHuxley's picture

http://www.youtube.com/watch?v=h5kEYF1FcEU

 

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 assets....so 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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

http://www.reuters.com/article/2012/02/12/us-passport-idUSTRE81B05A20120212

Mon, 02/13/2012 - 05:06 | Link to Comment Hobbleknee
Hobbleknee's picture

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

Mon, 02/13/2012 - 06:04 | Link to Comment 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 | Link to Comment 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.

Success!

At least they got them theirs.

 

Mon, 02/13/2012 - 02:34 | Link to Comment 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

 

bitchez

Mon, 02/13/2012 - 03:25 | Link to Comment AgShaman
AgShaman's picture

Exactly

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

Sun, 02/12/2012 - 20:54 | Link to Comment francis_sawyer
francis_sawyer's picture

price of gold

Sun, 02/12/2012 - 20:58 | Link to Comment fourchan
fourchan's picture

it was for somebody

Sun, 02/12/2012 - 20:58 | Link to Comment hack3434
hack3434's picture

No...

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

Just a glitch in the matrix,

Define real?

Sun, 02/12/2012 - 21:32 | Link to Comment q99x2
q99x2's picture

Its is

Sun, 02/12/2012 - 22:13 | Link to Comment JohnG
JohnG's picture

Not on my screens.

$2 gap up at open, already filled.

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

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

Mon, 02/13/2012 - 00:35 | Link to Comment i_fly_me
i_fly_me's picture

<deleted> Mr. Grogman beat me to it.

Sun, 02/12/2012 - 21:04 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment agNau
agNau's picture

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

Sun, 02/12/2012 - 23:12 | Link to Comment atomic180
atomic180's picture

Time will tell...

Sun, 02/12/2012 - 22:40 | Link to Comment SilverIsKing
SilverIsKing's picture

Proactive like Hitler was proactive.

Sun, 02/12/2012 - 23:14 | Link to Comment atomic180
atomic180's picture

Small minds...

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

smack-down...too

Fuck You's PPT.

Sun, 02/12/2012 - 23:08 | Link to Comment midtowng
midtowng's picture

Nothing to see here. Move along.

Mon, 02/13/2012 - 00:45 | Link to Comment 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 | Link to Comment 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 | Link to Comment Moe Howard
Moe Howard's picture

RockyRacoon! Calling a spade a spade.

Mon, 02/13/2012 - 09:14 | Link to Comment 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 | Link to Comment Milk Monk
Milk Monk's picture

What ads?

/Adblock Plus

Mon, 02/13/2012 - 03:07 | Link to Comment 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 | Link to Comment Bindar Dundat
Bindar Dundat's picture

k=Looks bullish for red ink!

Sun, 02/12/2012 - 20:46 | Link to Comment 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 | Link to Comment Sockeye
Sockeye's picture

So, basically, the Fed IS the economy.

Sun, 02/12/2012 - 20:48 | Link to Comment trav7777
trav7777's picture

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

Sun, 02/12/2012 - 23:10 | Link to Comment 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 | Link to Comment Clint Liquor
Clint Liquor's picture

Only God and Ben Bernanke can create something from nothing.

Sun, 02/12/2012 - 22:14 | Link to Comment JohnG
JohnG's picture

My wife can make mountains from molehills.

Sun, 02/12/2012 - 22:42 | Link to Comment SilverIsKing
SilverIsKing's picture

Hey, I know someone just like her.

Sun, 02/12/2012 - 23:06 | Link to Comment flacon
flacon's picture

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

Mon, 02/13/2012 - 12:45 | Link to Comment 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 | Link to Comment Death and Gravity
Death and Gravity's picture

2005-2012: As the Germans say:

 

"Hopla!"

Sun, 02/12/2012 - 20:48 | Link to Comment RmcAZ
RmcAZ's picture

These charts look bullish.

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

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

http://en.wikipedia.org/wiki/Mae_West

Sun, 02/12/2012 - 20:50 | Link to Comment Obadiah
Obadiah's picture

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

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

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

Sun, 02/12/2012 - 21:01 | Link to Comment disabledvet
disabledvet's picture

http://www.youtube.com/watch?feature=player_detailpage&v=LZOzk7T93wE
just in case you thought what was going on was something new....

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

ecstatic fuking convulsions, here, BiCheZ!

Sun, 02/12/2012 - 20:53 | Link to Comment 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 | Link to Comment Eally Ucked
Eally Ucked's picture

Bigger or smaller pieces of shit

Sun, 02/12/2012 - 21:38 | Link to Comment 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 | Link to Comment Manthong
Manthong's picture

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

Sun, 02/12/2012 - 21:05 | Link to Comment 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 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

On all three of his sex organs?

Mon, 02/13/2012 - 03:17 | Link to Comment StychoKiller
StychoKiller's picture

Women say they're better at multitasking...

Mon, 02/13/2012 - 03:18 | Link to Comment 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 | Link to Comment 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 | Link to Comment SilverRhino
SilverRhino's picture

The next few years are going to be very interesting.

Mon, 02/13/2012 - 11:37 | Link to Comment 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 | Link to Comment Dermasolarapate...
Dermasolarapaterraphatrima's picture
The Monetary Elite vs. Gold's Honest Discipline  

 


Vincent R. LoCascio (Author) http://www.amazon.com/gp/product/097684270X/ref=cm_cr_dpvoterdr?ie=UTF8&...

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 | Link to Comment 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. http://www.financialarmageddon.com/2012/02/its-here-or-maybe-not.html

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 | Link to Comment 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 | Link to Comment AssFire
AssFire's picture

(the original source)

http://www.businessinsider.com/how-your-dollar-got-to-be-worth-just-38-c...

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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment donsluck
donsluck's picture

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

Mon, 02/13/2012 - 06:51 | Link to Comment Shigure
Shigure's picture

AssFire

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 | Link to Comment 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 | Link to Comment Downtoolong
Downtoolong's picture

Step functions aren't good for stability.

Mon, 02/13/2012 - 00:44 | Link to Comment 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 | Link to Comment 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 | Link to Comment Bluntly Put
Bluntly Put's picture

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

Sun, 02/12/2012 - 21:07 | Link to Comment ziggy59
ziggy59's picture

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

Sun, 02/12/2012 - 21:00 | Link to Comment 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 | Link to Comment steelrules
steelrules's picture

Bingo!

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

Sun, 02/12/2012 - 21:00 | Link to Comment max2205
max2205's picture

Can we get this in log scale please

Sun, 02/12/2012 - 22:01 | Link to Comment JohnG
JohnG's picture

Not frightened enough?

Sun, 02/12/2012 - 21:00 | Link to Comment 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 | Link to Comment 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: http://www.youtube.com/watch?v=UoKdXXSYYfE&feature=player_detailpage

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

Sun, 02/12/2012 - 21:18 | Link to Comment 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 | Link to Comment Obadiah
Obadiah's picture

I dont see an entry for tungsten

Sun, 02/12/2012 - 21:09 | Link to Comment The4thStooge
The4thStooge's picture

Other assets.

Sun, 02/12/2012 - 21:16 | Link to Comment 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 | Link to Comment disabledvet
disabledvet's picture

did someone say "worthless tungsten"?: here's guy who found both some silver and some tungsten at a flea market!http://www.youtube.com/watch?v=jDT9rJafPH0&feature=player_detailpage man...talk about a paper weight!

Sun, 02/12/2012 - 21:04 | Link to Comment TapperIsTicked
TapperIsTicked's picture

Ride da wave dudes. Serfs up.

Sun, 02/12/2012 - 21:04 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment francis_sawyer
francis_sawyer's picture

THAT'S PERFECT FIBONACCI SPACING THERE BY THE WAY

Sun, 02/12/2012 - 22:17 | Link to Comment ebworthen
Mon, 02/13/2012 - 02:42 | Link to Comment williambanzai7
williambanzai7's picture

THE GOLDEN CRONY TRIANGLE

Sun, 02/12/2012 - 21:58 | Link to Comment TapperIsTicked
TapperIsTicked's picture

O my.

Sun, 02/12/2012 - 21:21 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment jackinrichmond
jackinrichmond's picture

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

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

So......

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

We are waiting.

Sincerly...The World....

Sun, 02/12/2012 - 21:25 | Link to Comment 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 | Link to Comment 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 | Link to Comment WmMcK
WmMcK's picture

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

Sun, 02/12/2012 - 22:04 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment gjp
gjp's picture

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

http://www.snopes.com/quotes/jefferson/banks.asp

 

Sun, 02/12/2012 - 23:45 | Link to Comment 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 | Link to Comment caerus
caerus's picture

yes...that quote is apocryphal...here'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 | Link to Comment 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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