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Why Did The Fed Inject Banks With A Record Amount Of "Other" Cash In The Past Week?
Update: as some claim, the "other" reserve move may have been sourced to satisfy GSE demands. That would be ideal and would indicate that FR banks are transferring excess reserves to fund GSEs consistently (and would also provide some curious accounting dynamics in the Fed's balance sheet). However, there is one small glitch. As a reminder, Fannie tapped the Treasury for $7.8 billion in Q3, while the quarterly Freddie Mac injection amounted to $6.0 billion. In other words the combined $13.8 billion cash draw need would almost explain the $88 billion weekly shift... if only it weren't for the other $74.2 billion. Furthermore, the balance is not explained by debt maturities or other transitory weekly cash needs. In fact, the YTD cumulative delta in the "Other" category is $115 billion, well above what the GSEs have publicly indicated they have received from the Treasury.
For all its obscurity, the Fed's balance sheet is relatively simple: on the right there are the liabilities such as currency in circulation (which is relatively flat at around $1.1 trillion but rising slowly (for now) every week), and excess reserves, at $1.5 trillion, or the money that is "parked" with banks and is the topic of so much consternation: will it ever spill out into the broader economy, won't it, and if not why not, and if yes, will it cause hyperinflation, and other such tangential ruminations. Then on the left we have the assets, or the "stuff" that backs the currency in circulation and excess reserves, such as Treasurys and MBS, which total $2.6 trillion, and which are the primary variable in every Large Scale Asset Purchase episode also known as Quantitative Easing: should the Fed "print", or said otherwise, "purchase" assets, then the excess reserve number goes up first, with a hope that it will slowly spill over into currency in circulation and other broader monetary aggregates. Lastly, there is also the Fed's capital account or "shareholder equity" for purists, but since the Fed can never in theory be undercapitalized by conventional definitions, this is merely a placeholder. Another broad way of looking at the Fed's assets is "factors that supply reserve funds" or "source of cash", and liabilities as "factors that absorb reserve funds" which is, logically, "use of cash." The key assets and liabilities noted above are the major components of the "flow" - they move glacially up and down, and are priced in well in advance of such moves. It is the marginal, or far small numbers that matter, and that fluctuate materially from week to week, that are not priced in, and are thus market moving. One such curious liability which we pointed out recently is the Fed's reverse repo agreements with foreign banks: in the week following the MF Global bankruptcy these soared to a record $124.5 billion. Basically, foreign banks scrambled to procure a record amount of US Dollars while repoing Treasurys and who knows what else with the Fed, an indication that other conventional liquidity conduits had frozen in the days following the Halloween MF massacre. Since then the Fed's Reverse Repo balance has moderated to more normal levels as Treasurys have gone out of repo with the Fed. Yet something more troubling has just been spotted. In today's one-day delayed issue of the Fed's H.4.1, literally the very last number on the very last subpage in the weekly update reveals something quite disturbing. Namely the Fed's "other" non-reserve based factors absorbing liquidity. And specifically, the actual number, which rose by an unprecedented $88 billion in one week to an all time high of $115 billion for the week ended November 23!
Why is this troubling? Because unlike reserves, this number is effectively not defined, and there is no clear transposition between assets and liabilities, not to mention that "other" could mean virtually anything. So in SOME ways this could simply be a plug to a plug (such as Fed Capital), and reading too much into it may simply be an exercise in futility. On the other hand, what we do know, is that by the generic definition of factors absorbing liquidity, in the past week, a domestic financial institution (because unlike last time around, this was not a foreign-based need for cash) was the willing and ready recipient of an incremental $88 billion in "reserves" - read cold, hard cash. Because if it is a plug, what it is "plugging" is an $85 billion drop in F.R. bank reserves which declined from $1.575 trillion to $1.489 trillion, an $85 billion decline. Which leads us to the question: is the "Other" deposit merely a slush fund to convert "on the books" reserves into an "other" use of proceeds. In other words, the question is - just what event is it that caused the rotation of $85 billion in reserves into $88 billion in "other" liquidity absorbing factor, and what do Economics textbooks teach about massive swings in "Other" F.R. deposits? What - Nothing?
We wonder: in this day and age of trillions in fungible excess reserves, and discount window stigmata, just what was it that caused US banks to demand a record amount of effectively under the table cash from the Fed?
Exhibit 1 and only:
Source: bottom right
And for those curious what comprises the "Miscellaneous Deposits" category which may or may not comprise the full "other" subcategory, we refer to the Financial Accounting Manual For Federal Reserve Banks, section 11.30 (220-400):
A wide range of miscellaneous deposit accounts are carried on the books of the Reserve Banks. The deposits arise from depositary responsibilities assigned to the Reserve Banks by law—such as accounts opened by the Federal Deposit Insurance Corporation to cover closed banks and checking accounts opened by government agencies. Deposits also arise from work in process at the Reserve Banks, such as payments received from employee subscriptions to savings bonds, funds received for the account of new depository institutions which have not as yet opened for business, and interest paid on securities held pending redemption in federal estate tax cases. Deposit accounts are also carried for purposes that are peculiar to only one or a few Reserve Banks. The Board of Governors, for example, maintains a general fund account at the Richmond Reserve Bank to cover general disbursements and another to cover payroll charges and the Federal Reserve Employee Benefits Office maintains accounts with the New York Reserve Bank. The individual accounts and balances comprising this account should be detailed on the Reverse of the form 34. The individual account descriptions should be adequate to identify the different types of accounts maintained under this heading. For example, "Employee subscriptions to savings bonds" is a sufficient description, rather than Miscellaneous Deposit account 1, etc.
Somehow, we don't quite understand how the above explains an $88 billion swing in one week.
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Why didn't they juts give it to us to stimulate the economy? It's all funny money anyway. The Bankruptcy gave the FDIC the authority to discharge all debt. 112 Statutes at Large chapter 48. Part of HJR 192.
These assholes are all going down.
If they gave the fiat to us, the balance of power would "be all wrong".
You have to think like organised crime to understand organised crime. Desperate times call for...
http://market-ticker.org/akcs-www?post=198023
http://www.blacklistednews.com/17_Quotes_About_The_Coming_Global_Financi...
"If you need a criminal lawyer, you need a criminal lawyer. - Call Saul!"
There is a simpler explanation. American, European and Asian major traders are all playing Counter-Strike: Global Offensive in Capture-the-flag team mode. Ammos used are various toxic assets flying back and forth between those three teams. Nothing to do with reality, that was so 1990's. Much more fun too.
http://www.save-a-patriot.org/files/view/whofed.html
So Europa is tits up? Euro banks need a bit of dosh right now?
Must keep it off the books if possible?
Euro banks are large holders in the FED?
It's the circle(jerk) of life.
Fictions backed by over estimations made by the genetically degenerate off spring of a fraud.
I love these little ass hat junksters! Reminds me of my youth. I'll bet ya are all short after the Bull Shit bounce into next week!
Margin management Youngsters! Anyone hit that eur/chf spike this morning? Those early entry orders pay off early on occasion.
Off to Singapore for the year end close. Trade well all. Stay small and nimble!
You can't be that old if getting junked on blogs is part of your youth.
Is it me or does the first Republican that takes out 2 minutes of ad space and plays the youtube of Biden praising Corzine get the nomination? How are they not all over that?
LOL- good point..... Then again, if I were the Republican nominee, I think all I'd do would be to compile a tape of Biden's greatest hits, then end the commercial with "Seriously?- I'd win the election using only one word........
They fucked you. THey ALWAYS fuck you at the drive through
Anyone else catch Rickards tearing Roubini a new one?
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/26_R...
Much respect as Ive lost for Roubini, its still sad to see someone really blow their brains out hating gold when all they have to do is say, "I think its overvalued". Like Buffet, Roubini just can't seem to stop.
For a plausible answer to why the Fed is having such difficulty just creating money out of thin air anymore (and why taking down MF Global really could have been a desperate attempt to steal to re-capitalize some banks), go to www.benjaminfulford.net
Apparently the Federal Reserve Board criminals have been largely cut off from their previous access to the computers that control the world financial system.
The entire economy is a fraud.
Join us before it is too late.
http://www.facebook.com/pages/Gun-Owners-for-a-Gold-Standard/180803025347901
what about facebook and twitter being data mining
operations? yea i know that's what most operating systems are
never mind blogs ..etc. ?
Is there such a thing as internet privacy?
http://www.kcrw.com/news/programs/tp/tp111125is_there_such_a_thin
no
It could be money held for banks not yet open according to the wording above.
Our share of EFSF?
So the last time this happend around 4/14/2010 the S&P was trading around 1200, two weeks later it was at 1100. So if history repeats we should be at S&P 1100 on December 7
why does the dog lick his balls?
because he can and i'm impatient, not going to
live forever.
@ " Why Did The Fed Inject Banks With ..."
it is a form of exponential incest.
.http://www.youtube.com/watch?v=LxaY_mxYflg
Ry Cooder: No Banker Left Behind
Congress is preparing to use the army on the American people once it turns ``Greece`` in America...
http://www.aclu.org/blog/national-security/senators-demand-military-lock...
Senators Demand the Military Lock Up American Citizens in a “Battlefield” They Define as Being Right Outside Your Window
The Senate is going to vote on whether Congress will give this president—and every future president — the power to order the military to pick up and imprison without charge or trial civilians anywhere in the world.
The power is so broad that even U.S. citizens could be swept up by the military and the military could be used far from any battlefield, even within the United States itself.
In support of this harmful bill, Sen. Lindsey Graham (R-S.C.) explained that the bill will “basically say in law for the first time that the homeland is part of the battlefield” and people can be imprisoned without charge or trial “American citizen or not.” Another supporter, Sen. Kelly Ayotte (R-N.H.) also declared that the bill is needed because “America is part of the battlefield.”
These two senators are republicans and dems control the senate...the bill will never pass without democrat approval...so we'll see who really wants this bill to pass when the votes are cast.
The Democrats want the bill just as much as the Republicans do, they'll pretend to go along with it as a "necessary evil for security" but really can't wait for the day they can make it physically dangerous to have a dissenting opinion.
list all names and adresses of politicians, soldiers, cops, tsa, etc., online, on lamp posts etc.! hey! they've got family too! i mean, like, God forbid anything should happen to them! an eye for a fucken eye!!!!
they will pigon hole this one-- its a Repub tactic to get nazi simps to vote for you---
I'm not a big fan of big government and personally, I think politicians are self serving traitors. To me that is the norm and the exception is the honest politician that would rather be in their home state, close to family and with a real job.
However, you have to be careful. Other organizations and individuals are just as devious with their own agenda. Granted I know these bills written in congress are generally monstrosities of hundreds if not thousands of pages. This is done on purpose BTW.
Anyway, for those that actually research. download the bill. Look on page 362 -363.
(b) APPLICABILITY TO UNITED STATES CITIZENS AND LAWFUL RESIDENT ALIENS.—
(1) UNITED STATES CITIZENS.—The requirement to detain a person in military custody under this section does not extend to citizens of the United States.
(2) LAWFUL RESIDENT ALIENS.—The requirement to detain a person in military custody under this section does not extend to a lawful resident alien of the United States on the basis of conduct taking place within the United States, except to the extent permitted by the Constitution of the United States.
My overall thought is that congress and the president have to much power anyway but do a little research and just don't take the word of groups like the ACLU.
My question is, is this for EU banks we're bailing out or US banks.
If its US banks this really is scary. I suspect though that its EU banks.
I think it is euro area bsnks too.
If so, then it is bullish for the USA and will serve to strengthen dollar hegemony for now. I need just a few more years of can kicking!
http://www.zerohedge.com/contributed/after-accurately-predicting-french-...
There's no material difference between "Euro banks" and "US banks". They engaged in a self-enriching scheme together known as The Ponzi where they simply traded paper back and forth across the Atlantic, levering up at each step. Now they're in trouble because more money exited the banking system than entered during the crisis. So all their Ponzi paper is worthless. If one goes, then the counterparty to billions of dollars is gone and that hurts other banks. They're all insolvent because the level of actual banking business was laughable compared to the Ponzi business. It can't sustain them
I remember when Krugman said something like, your spending=my income. That guy is such a charlatan.
Relax, brothers and sisters. Everything is going according to plan.
Here's a copy of the actual Stress Test that will be given to the banks...
1) Spell your name
2)What is the name of the bank?
3) Can you walk and chew gum at the same time?
4) What was your Mommy's first name? (besides "Mom")
5) Can you wipe your own ass?
6) Are you a lying thieving piece of shit?
7) What percentage of your customers do you defraud everyday? (Clue: all of them)
8) How much money will it take to bribe the regulator giving you this stress test?
9) How big is your yacht?
10) How long do you think it will be before the people drag your worthless ass out of your office and hang you?
You pass with flying colors!!! Continue defrauding, it's the Amerikan way.
It adds up to 1.5 trillion since Lehman went BK? I added them up and 1.8 trillion.
If only the government bailed out Lehman, Bear Stearns and MF Global, we wouldn't have this problem (sarcasm).
Second, if Goldman was leveraged the same as Lehman (27) and Bear Stearns was leveraged the same as Morgan Stanley (32) pre-crisis, why did Goldman and Morgan Stanley get bailed out when Lehman and Bear did not? Current leverage for Goldman and Morgan Stanley is around 12, although Morgan lost 200 billion in "assets" (loans) and gained 25 billion in equity, and Goldman lost 200 billion in "assets" (loans) and gained 38 billion in equity. What happened to the 400 billion in "assets" of Goldman and Morgan Stanley?
Third, why did WAMU and Nat City get gobbled up by JP Morgan and PNC when they had less leverage in 2008 (12).
How can they give the other banks 1.8 trillion and not bail out Lehman and Bear (JP Morgan was a benficiary so technically not a not bailout) and call these a free market? This is more like a socialistic Russian system, where the government decides who the winners will be. This is very un-American.
But then again Freud always said "America is the most grandiose experiment the world has seen, but, I am afraid, it is not going to be a success."
But Freud also said "A civilization which leaves so large a number of its participants unsatisfied and drives them into revolt neither has nor deserves the prospect of a lasting existence."
I got this information from Balance sheets from yahoo from waybackmachine.org. Maybe future balance sheets will allow us to come to some conclusion.
I smell $350 oil coming...soon.
Then I smell near doubling in bunker fuel prices coming...soon. Then I smell a chance to re-import some manufacturing jobs.
Hmm, interesting and curious.
I can't answer the question, but I found this explanation of what "other non-reserve deposits" are, which is hidden here (behind magnifying glass number 4): http://www.federalreserve.gov/monetarypolicy/reservebalances_cp.htm
"Other deposits: Other deposits at Federal Reserve Banks include balances of international and multilateral organizations with accounts at FRBNY, such as the International Monetary Fund, United Nations, International Bank for Reconstruction and Development (World Bank); the special checking account of the ESF (where deposits from monetizing SDRs would be placed); and balances of a few U.S. government agencies, such as the Fannie Mae and Freddie Mac."
The fact that this number was never much above one billion before Sept. 08 suggests a link to the payment of bailout money from Treasury (not from the Fed, it's just held on deposit at the Fed, apparently until the recipient spends it). The payment of funds by Treasury to the GSEs must be part of this. But that obviously can't explain more than $80b in one week.
And curiously this number has been showing a tendency to start moving up at least a week before major sell-offs. Besides the flash crash, it foresaw the sell-off that began in the second week of July. Make of that what you will.
Thanks for that insight! If it is indeed drawing off liquidity, then that drawdown in liquidity would be what prompts the sell-offs.
Since the Bernank is such an expert on the Great Depression, he certainly knows how to create another one for his globalist masters. (From everything I've read, the GD was caused by the Fed [deliberately?] withdrawing liquidity).
So ... sell-off coming next week???
Good observation, there is however one small problem: it is insufficient to explain the swing:
For the GSE's Q3 capital deficiency:
What is the reason for the $74.2 billion balance in swing? Also, if you add the cumulative delta in the other account, it has risen by $61.5 billion in November, and $115 billion YTD, or far in excess of all the capital that the GSEs have requested from the treasury.
In other words, it is not simply the GSE shortfall funding indicator as some believe and does not answer the question of what the use of funds really is.
Is it, as we pointed out, merely a plug to keep capital constant, or is this a broader, and undefined, slush fund (which includes GSEs) for the weekly reserve flow variance, read capital deficiency?
http://www.youtube.com/watch?v=I1wg1DNHbNU
Talking Heads - "Once In A Lifetime"
.
http://www.youtube.com/watch?v=ZRILLqV0l58
Talking Heads Live Wembley 1982 (3) Once In A Lifetime
same but different.
.
and here this, different but the same....
.
Come On Up To The House - Sarah Jarosz
http://www.youtube.com/watch?v=5rBGvTHk02Y
.
and this
Tom Waits- London 04 Come On Up..., House Where Nobody Lives
http://www.youtube.com/watch?v=wcMpnMaYf9g
.
" what makes a house grand ain't the roof or the doors. .."
.
http://www.youtube.com/watch?v=-GugzLSbOQE
...
To me this is the current question on the table. How exactly to handle distribution without setting of class warfare. I think I am starting to see the answer.
I have written extensively over the past year about the "divorced" currency scheme as proposed by Mervyn King (BOE) and how that will be implemented. Essentially it is one non-fractional currency to satisfy the double coincidence of needs and another gold-fractional currency to satisfy the wealth component of money. You can read about it here. http://tradewithdave.com/?p=6999
But in regard to the question of distribution, Steve Keen's recent presentation for the BBC helped me understand a methodology whereby the distribution may occur. In Steve's scenario, money, let's say $40,000 per household could indeed be distributed and if a certain household was a mortage-holder they could be required to use the money to pay down debt and in which case their money would be part 2 of the divorced currency scheme. While a second family, that had no outstanding mortgage could be allowed to spend their money as they wished and their funds would be part of the non-fractionally reserved currency.
This is the first time that I had been able to grasp a possible distribution method that would allow for the total amount of funds distributed to reflect the new "post-reset switch" divorced currency in a stealth manner that addresses the class reality of debtors vs. savers. I'm not sure about the political fallout from such a strategy, but I do so how this could be used as an inflation management tool, especially when done inconjunction with a new currency where one component has a fractional gold-backing. Here's a link to the Keen presentation for the BBC. http://tradewithdave.com/?p=8507
Dave Harrison
www.tradewithdave.com
This sounds like Gesell's solution to the problem of money; "Freigeld". Essentially to explicitly separate the store of wealth from the medium of exchange.
The medium of exchange would be deliberately and explicitly devalued to encourage circulation. i.e. trade, economic activity. Gresham's law put to good use. This was implemented in Worgl, Austria in 1932 during the Great Depression, the devaluation was managed through the requirement to purchase stamps for the currency to remain valid over time. Worked a treat apparently.
In this case, the store of wealth sounds like a bond. Explicit interest in return for explicit risk. Why would anyone care? Wealth is stuff; stocks, land, commodities, houses, cars. If I buy some land I have stored my wealth. This would be nothing more than yet another savings bond or gold ETF, and therefore completely irrelevant, who cares if it's backed by gold. The key is the means of exchange and the explicit removal of the store of value attribute.
Frankly if this is the thinking, it's very much in the right direction, starting to tackle the cause of the problems not just the symptoms. If it gets rid of fractional reserve banking that's a good thing. It would remove the booms, busts, debt slavery inherent in the existing monetary system. You never know, it might even end poverty.
Thanks for your enlightened comment. Indeed such a plan is formed upon a bullion basis implied within human consciousness (ala Sandeep Jaitly). FOFOA's Freegold thesis has implications also, but I am working on a thesis called Vector gold in response.
My response was to the comment above by @knowless about the political implications and potential class warfare based on the actual distribution of funds.
All of your starving people (47 Million EBT JPM) are belong to us....give us some other money *NOW*.
BTW, Thanks for letting us kill MFG and her clients!
Love,
JPMonster.
http://movieclips.com/KpQS-ghostbusters-movie-this-chick-is-toast/
"NATO helicopters opened fire on a Pakistani checkpoint, killing 20 soldiers, two senior Pakistani military officials said Saturday...Pakistan has halted the flow of NATO supplies in Khyber Agency bordering Afghanistan in response to the attack, said Jamil Khan, a senior government official in the area."
Little Stalingrad, only 130 000 troops there. US Army will last about one week without steady supply of Burger Kings and AA-batteries. Luckily, Afghanistan is soooo friggin close to NORTH ATLANTIC, this won't be a problem!
Max & Stacey dish it up to David Cameron: http://www.youtube.com/watch?v=l4T0gf9KnOE
Max is in fine form!
these are the banks that will go bankrupt in 2012
http://capital3x.com/trades/european-banking-exposure-will-weigh-on-the-...
Here's a speculation. Maybe they've just decided to let Greece default and trigger the credit event everyone's been fearing. The Fed is loading up US banks with cash to pay out on all this. This is the one last hope for the Euro -- if all this credit insurance pays up and keeps the world from exploding, then maybe bondholders will trust their insurance for Italian bonds, and then can start buying those other bonds, and those markets will calm down.
Double post. Sorry.
Strapped banks needed Black Friday liquidity.
Well, Tyler -- here's a thought:
Most US citizens who understand the US economic situation are pretty fed up with the predatory behaviour of the US megabanks upon the US taxpayers. It seems that whenever QE is used -- the banks get it all for free while the citizens, who never benefit from QE anyway, are always liable for that ever-growing debt.
So here's the idea. Disallow, by law, the use of the fractional multiplier by all the banks -- who can now only ever loan out money equal to just their bank deposits without the fractional multiplier from this point.The banks currently are allowed to multiply any bank deposits by 10 and use this vast profit however they like. But instead of doing this, allow this same fractional multiplier (which is 10) to be used whenever salaries or wages or pensions are paid on a monthly basis to any American citizen. By multiplying all monthly payroll(and pension payments) by 10, this would certainly increase liquidity and spending in America right where its needed.
There would also be no change in the monetary base because the banks have used this same fractional multiplier anyway in the past. So no inflation and the money goes to where it should -- to help the citizens and not just the banks. This would also be a huge incentive for unemployed citizens to get a job or start a business -- because even the worst lower paid jobs would pay well when all payroll wages and salaries are multiplied by10 !! This would also force more competitiveness between the banks to attract these richer customers and would also increase more competitive investments and savings from the citizens with much less use of dangerous leverage from the banks in the markets. This fractional multiplier on payrolls and remunerations and pensions should also be gradually reduced for high earners -- like the CEOs of Banks. The whole effect of this change would simply put more investment power in the hands of the ordinary citizen -- who could then afford to save, invest or buy properties without much restriction. This ploy must also work to help quickly stimulate the currently stagnating aggregate demand in the US with perhaps a full exit from its liquidity trapped economy. As well, the US government could increase taxes a little bit on the citizen without hurting their new-found high standard of living.
All you're doing here is just applying the fractional multiplier at source(the US citizen) rather than in the banks -- but the dollars would still end up in the banks -- so what's the difference? Control of the US dollar would also pass more to the US citizen and currency control and power would be subtracted from the banks. I mean if we're going to fake it, then why not fake it to benefit the ordinary citizen? Isn't that what everyone wants?
So it's all good !!
One thing though.
Taking away their fractional multiple(otherwise known as their money-for-nothing capability) would really piss off the banks. Well, who gives a flick about their opinion ?
Nevertheless, I find this postulated switched use of the fractional multiplier pretty damn fair for the ordinary US citizen.
The FED will do what it takes.
And I'd of gotten away with it too, if it weren't for you meddling kids!
Well NATO just did something very very stupid again :
http://www.dawn.com/2011/11/26/eight-pakistani-soldiers-reportedly-kille...
Nato helicopters attacked a military checkpoint in northwest Pakistan on Saturday, killing up to 28 troops and prompting Pakistan to shut the vital supply route for Nato troops fighting in Afghanistan, Pakistani officials said.
Can you imagine what would have happened if Pakistan openly killed 28 NATO troops like that? Or Iran? Or Hezbollah? You know what would have had happened.
5 Nov 2011 at 2:01 PM
Layoffs Watch ’11: Nomura
By Bess Levin
Unfounded rumor of the afternoon: apparently big cuts are said to be expected by the end of the year.
“FYI: Nomura is shutting down all US investment banking activities by the end of the year – 2,000 people are expected to be fired.”
http://dealbreaker.com/2011/11/layoffs-watch-11-nomura/?utm_source=feedb...
The funds were handed out to accomodate bank runs. Shits about to get real.
Just in time for Stress Tests. Now they will show the sheeples everything is great and then another stress test after the electrion to show the sheeples they solved something.
If I remember correctly last year the Fed changed a procedure where they have to pay the US treasury any profits over 6%. The reasons were that the Fed wanted to retain enough to prevent its own insolvancy. If the Fed has sold down equities (which it now can own) maybe the 80+Billion is money owed the US treasury--- any thoughts on this ---is this possible???
This may be an odd thought - but at what point does the fed become effectively insolvent? All the bad debt they are back stopping will never be repaid...can't print your way out of everything.
with out "mark to market" asset values are flexible --- the bust the Fed bank is a soverign thing and has to do with balance of payment settlement via the BIS and currency swaps. IMHO ----school me someone--
http://www.aleablog.com/2011/11/26/zerohedge-nonsense-debunked/
So let's see:
In total: $13.8 billion
It almost explains the $88 billion outflow. Almost.
Our best plan is to plan for constant change and the potential for instability, and to recognize that the threats will constantly be changing in ways we cannot predict or fully understand. -- Timothy Geithner
http://libertystreeteconomics.newyorkfed.org/2011/11/the-failure-to-fore...
The fact you can't comment on that blog pretty much says all you need to know. Controlled Opposition
Yeap case closed. Now for the kicker from our DHS Sisters and Congress
Senators Demand the Military Lock Up American Citizens in a “Battlefield” They Define as Being Right Outside Your Window
http://www.aclu.org/blog/national-security/senators-demand-military-lock...
Bill Text
112th Congress (2011-2012)
S.1867.PCS
http://thomas.loc.gov/cgi-bin/query/z?c112:S.1867:
Udall Introduces Amendment to Prevent Veto of Critical Defense Bill
http://markudall.senate.gov/?p=press_release&id=1746
Section 1031 essentially repeals the Posse Comitatus Act of 1878 by authorizing the U.S. military to perform law enforcement functions on American soil
http://en.wikipedia.org/wiki/Posse_Comitatus_Act
Whoo Hoo
no shortage of paid idiots like yourself
In a mark to fantasy western bankstering world, we the people end up holding the fantasy in the end. Once the extend & pretend gig is up, the financial global warriors hit the monetary nazi oddessa line. Escaping without prosecution and live to work the black magic paper fiat illusion another day. Appears we're on the brink of a very huge smoke screen to focus our anger of rank fraud, theft, and outright pillaging of our freedoms elsewhere. Black magic illusionist slipping away undercover to have a repeat of the same plunder upon the global citizens reset.
Where does it all end? With the annihilation of the bankster scum. Won't happen through the corrupted injustice system. It's owned by banksters coast to roast. So when, how, and where the vampire squids get what's coming to them is merely left to speculation. Enough of ameriCON'd stepped off the bankstering grid, the squids would lose power very quickly. Awe but a return to sound money isn't something which will be allowed by the rat bastard world power brokers. Annihilating them means destroying the world as we know it in a complete scorched earth participation of good vs evil. God be with us folks, as it's to hell with them or forever be enslaved.
Bankrupt bitchez!
libertarian86.blogspot.com
It would be nice if they use this money to free up credit so this economy can get going again.
Nope not in the plan. Ok to go to wars but now to build or do anything else. Pain Bitchzzz. Lots of it as along as Pukes and Dumbasses are in office.
Vote Ron Paul and dismantel the crap which has been piled on.
Time to rule Congress with a baseball bat.
POPE CLEMENT VIII
Reliable blood hound, Henry Kissinger, drew a bull's eye on the huge Arab state sovereign wealth funds in Western banks (International Herald Tribune, 9-19-09). As the Saudis seem to be finally building a modern transportation system, it's time for mean Uncle Saw and NATO to change a few regimes before any more of these funds are used to build the economies of their depositor's dusty little countries.
Trying hard not to see the financial crisis of the last three years as a military operation, which all Americans have supported by sacrificing their home equity, 401K's, and the education of their children.
"just what was it that caused US banks to demand a record amount of effectively under the table cash from the Fed?"
i am not so certain that it was usa banks unless perennial quadripelegic boa was the source..
Just filed all my unsecured debt way back in "the other" filing cabinet.
To answer the articles title question, would be to say, That the Fed(not federal) IS A FINANCIAL Terrorist CRIMINAL ORGANIZATION,that finances other Criminal Financial Terrorist Organizations,with the Blessing and encouragement from the USA Goverment.
That says it all........
How the fuck are either one of those liabilities in any way?
What the fuck kind of claim do I have against the Fed for my currency? What the fuck can I trade currency in for? They create new money at will.
Excess reserves?? Banks issue loans limited by the reserve ratio and based on their reserves at their local Fed bank. If they start depositing amounts vastly excessive of the minimum required to cover their loans (as they have since Lehman and TARP and every day since), the Fed doesn't care any less or any more than before. They create new money at will.
The Fed is the institutionalized lender of last resort for the banking cartel. It has no true liabilities. It will always create new money and trade it to the banking cartel in exchange for bubble gum wrappers (such as bonds, mortgaged-backed securities, or even literal bubble gum wrappers) until we burn it to the ground with torches, secure in our numbers and our pitchforks.
There is an unholy alliance between media, military, and money. The Fed is the magic money machine of the "money" pillar of that unholy trio. It has no liabilities. None at all. It just pretends that it does, it pretends that it is genuine bank, just like all banks do. All banks have more liabilities than assets. That's the music in the game of musical chairs. The Fed should not be seen as anything different than any other banker charlatan. The liabilities and assets are just ledger entries, electronic computer tabulations, and pieces of paper that we make "real" by believing in them. But it is no more real than we make real by our belief.
If you really look at what our money is, you will see that it is unpayable debt promised from the future. We are in a bus, driven off of the edge of the Grand Canyon, and we tell ourselves we are in an airplane. We gun the gas pedal for more acceleration, and in the musical-chairs world of banking, we actually do get some kind of altitude increase from gunning the pedal. However, we are pulled downward twice as hard as we push up from the acceleration. The half-life of salvation for new debt-money is now at the point that even full-throttle acceleration cannot give us any more lift.
If you realize the truth of these words, get down in your bunker and protect yourself from the many people who do not realize it. If you have no bunker, then you need to reject the Western consumer lifestyle and the false, holographic conception of reality proferred to you by the media. Because the Western consumer is the dead-weight in the current economic paradigm. He may only live so long as it is of value to the greater corporate world order. If the financial-corporate world order collapses under its own iniquity and unsustainability, he is even worse off.
This is real life, people. This is not what the media says. This is not what the Fed / banking cartel says. This is not even what the most awesome military force in the history of humanity says. The media, the military, the money are not an invincible triumvirate. Two of them are near collapse, and perhaps all three are.
Get your head out of The Matrix. You are subject to the biological laws of life and death in spite of what your bank account says, in spite of what your "portfolio" says, in spite of what the television says, and in spite of what you think you know.
Get in tune with real life.
I like the "it's getting close to bonus season" for these crooks. Firehose in the cash, past the phony stress tests, talk about how flush you are, and how you thus "deserve" a great big windfall bonus for being so brilliant and qualified. These suckers actually believe their own hype, too. Fake water from fake fountains. When are people going to notice that they are parched and that assurances and more fake water ain't gonna cut it?