Fed Treasury Holdings: $1,000,341,000,000

[MNeagle]

mostly all greek to me, but maybe someone here understands it:


Fed Treasury Holdings: $1,000,341,000,000


It's time for the Fed "one trillion" hats- as of 2:00 pm Eastern, the Fed's Treasury holdings have surpassed $1 trillion. Add to this the well over $1 trillion in MBS and agency debt held by the Fed, and there is your perfectly quantified reason why the S&P has just hit a two year high, and why the Nasdaq bubble is alive, back, and will soon retest its 2000 highs. Basically, with the Fed the de facto purchaser of all securities with a yield of under 4%, the entire definition of a risk-free rate per the MPT has to be scrubbed. To be sure, risk-free will very quickly become risk-full when and if the Fed, in its attempts to succeed with central planning where so many have failed before, either finally loses control over rates, or far less probably, decides to remove some of these extra trillions in free liquidity. Until then, the banker party is on in full force. The reason for the penetration of this key psychological barrier was the completion of today's second POMO operation, which added $1.619 billion in TIPS securities. By the end of this month, the difference between the Fed and the second largest holder of US debt will have surpassed $100 billion... and continue climbing at a rate of about $30 billion per week. And it will not stop.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/havenstein/Fed%20Holdings_1_0.jpg

link (http://www.zerohedge.com/article/fed-treasury-holdings-1000341000000?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedg e+-+on+a+long+enough+timeline%2C+the+survival+rate+fo r+everyone+drops+to+zero%29)

[DMac]

As one of the comment writers said, this number is kind of irrelevant as the various unnamed "Virgin Island" or "Canary Island" holding companies of the FED put this number well over $1T a long time ago.

Still, given that this is the "for public consumption" data, $1T is a lot of money. Er, debt.

Cue the Phoenix, NWO currency, by the start of 2014.

[Neuro]

And Broke Britain holds half a trill... I would guesstimate that Fed holds around a half a trill of Broke Britsin debt too...

[FreeEnergy]

Seems to me everyone is in "debt" except the bankers.

This is your classical three boxes "guess where's the ball" scam. Apparently you pick up a box, and there's debt there (not a ball). So everyone points to China and Japan right now indicating that apparently they are owed all the money, but it is scam. The ball is in the hands of the gambler...khmmm there is no debt holder.

IMHO the paper debt is created whenever and is sold off to either a third party or bankster-created entity. Could be also insured. Then that company creates stocks or tries to sell off its assets, another words they are trying to scam anyone who has any money to buy into the companies that have nothing but bad fraudulent debt. If companies are too big and gov. got involved, they'll cry wolf that it is too big and needs to be bailed out.

The Fed, the large commercial Banks, and their fraudulent stock market is one giant poisonous snake pit.

When the "debt" is A FRAUD, all it takes to write it off to clear everything. Could be $1 T, could be 10 T, or 100 T, who cares if it is all fraud.

Need to bring in da Army....it is such a shame Army and Navy in this country is totally corrupt.

[keehah]

Washington can still spend it even faster! I think HyperTiger underestimated the depravity of DC.

Bartlett: Cooking the Books -- The 2010 Deficit Was $2.1 (Not $1.3) Trillion (http://taxprof.typepad.com/taxprof_blog/2010/12/bartlett-cooking.html)

If corporate accountants used government rules for their financial statements, they’d be jailed. That’s why we rarely see the real number of the federal deficit—a terrifying $2.1 trillion last year. ...
In principle, changes in the cost of long-term commitments should be included in the budget, as they would under accrual accounting. The Financial Report takes a stab at doing so and finds that it would have almost doubled last year’s budget deficit from $1.3 trillion to $2.1 trillion.
http://taxprof.typepad.com/.a/6a00d8341c4eab53ef0147e10391d4970b-450wi

[Horn]

I think HyperTiger underestimated the depravity of DC.


Electronic Poof!!!