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Fed Treasury Holdings Pass $1.5 Trillion

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http://www.zerohedge.com/article/fed-treasury-holdings-pass-15-trillion

It seems like it was only yesterday that the Fed passed the $1 trillion mark in total Treasury holdings (actually it was on that memorable Winter Solstice of 2010 but who's counting). Well it is not even 5 full months later, and the Fed has already added $500 billion in holdings. Following today's $6.94 billion Pomo, total Fed holdings of US Treasurys have now passed $1.5 trillion (which is ironic because the net new cash tendered to the Treasury per total Bond, Note and Bill issuance and redemption in 2011 through the most recent settled auction is $350 billion, in other words the Fed has funded about 140% of the total Treasury cash needs). As a reminder there is just under 6 weeks left until QE2 ends, at which poin the Fed's Treasury holdings will be about $1.6 trillion, and the Treasury will be without its primary (over and above the maximum) source of capital.

So Zimbabwe announces a commodity back currency and the US meanwhile continues it's printing press experiment.

Sometimes it just feels like we are on one huge acid trip.

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..........So Zimbabwe announces a commodity backed currency, and the US meanwhile continues it's printing press experiment.

Sometimes it just feels like we are on one huge acid trip.

Irony is, that the alternative currency in circulation is, guess what.......the $US.

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So Zimbabwe announces a commodity back currency and the US meanwhile continues it's printing press experiment.

Sometimes it just feels like we are on one huge acid trip.

The great thing about US Dollars is there's so many of them. I believe the US are looking at ditching the $1 note due to the cost of cotton being so high. They just don't get it...

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haha

If we think of this logically - one country shouldn't be the reserve currency of the world - we should have a new world currency that should be the world currency - free from political distortions and printing. Gold used to be it... but i think it needs to be something that speculation can't drive to crazy prices

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So Zimbabwe announces a commodity back currency and the US meanwhile continues it's printing press experiment.

Sometimes it just feels like we are on one huge acid trip.

I am at the moment very conscious of a squirrel.

Edited by Timm

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Have a look at the chart:

cs.tiff.converted.jpg

What is shows is percentage of total federal debt held by the FED.

So effectively you could see this as a record how much federal debt has been 'monetised' at any given point

in time since 1920. As of 2009 the ratio wasn't too bad - however one assumes its a good deal higher now.

In the chart you can see the 'easy money policy' of the 20's, the effect of the depression (public buy bonds),

how the WWII debt was dealt with and how the FEDs contribution to the inflation of the late 70's, the volcker squeeze that followed and so on.

Of course the chart doesn't show total debt held by the FED or total federal debt, but you can take a look at a chart of

US interest rates to get a sense of these things.

Now we just need an updated chart for 2011 to get a sense of how things are progressing.

Edited by scepticus

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Have a look at the chart:

What is shows is percentage of total federal debt held by the FED.

Now we just need an updated chart for 2011 to get a sense of how things are progressing.

US Total debt subjected to current ceiling is 14.29 Trillion dollar which is almost there.

Fed holding 1.5T. So, about 10.5% at the moment (and so about a quarter of US domestically held debt are held by the FED)

usdebtholder.JPG

post-3007-0-16221900-1306003311_thumb.jpg

Edited by easybetman

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US Total debt subjected to current ceiling is 14.29 Trillion dollar which is almost there.

Fed holding 1.5T. So, about 10.5% at the moment (and so about a quarter of US domestically held debt are held by the FED)

Yes. A tiny amount, historically speaking.

If one excludes intragovernmental debt (e.g. what the federal government owes to social security and medicare etc) ,

then the ration is 1.5trn/9.66 trn, or about 15%. Still small beer historically speaking.

Also, see this key chart:

chart.png

Note how nominal rates peak at the point at which the ratio of total govt debt versus debt held by the public is at a minimum. We are a decade away from

this point, at least.

public/private, ying and yang, long wave.

In other news: RATES TO SOAR!

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  • 277 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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