If You're Wondering What They're Distracting You From: Bond Losses At The Federal Reserve Top $192 Billion

Wait a second. What percentage of U.S. Debt do you think the Fed has been buying the last year or two (new issuance)? Wasn't it close to 100%/... like over 90%.

Not to mention - you don't think it's a coincidence that all this Detroit bankruptcy has been in the news so much, do you? I can see the plan, once the Fed well runs dry, to just raid the pensions, and retirement accounts to support the Treasury market. It will be sold as the Fed'l Govt HELPING bail out the pensions & retirement accounts, but it will be the reverse in reality.

Interest Rate rises typically have had a positive effect on Gold and Silver, and with a weakening dollar...

I think Gold and Silver will go parabolic with interest rates, might not happen till all of the big bank shorts are covered though, which would mean Sept forward...

No, they were buying 90 to 100% of the long term debt, but over 75% of our debt issuance was three years or less...

They're already raiding Govt Pensions, RIGHT NOW, that's how they are avoiding the debt ceiling, they're stealing the Equity from those pensions and replacing it with long term treasuries...

Last Edited by Saddletramp on 08/04/2013 07:38 PM

Prices of both will eventually explode upwards, but they will hold them down as long as possible, to maintain confidence in the currencies as long as possible.

Of course, the key banks that have been manipulating the gold & silver prices down (with shorts) are now positioning themselves on the long side. They will profit from the eventual rocket move up... once they can no longer hold prices down.

Ahhh, got it. thanks. So what percent of the new issuance of short-term debt has the Fed been purchasing in the last year or two?

What if they forget to mark the debt part of the transaction on the ledger sheet? What if they just create cyber zeroes and don't sweat any of that nasty "debt?"

I don't have confidence in them stopping with just Govt pensions, do you? Why wouldn't they move to private pensions, and then IRAs/401ks/403bs when necessary?

Right e o

going to be one interesting week, nice thread

Last Edited by Thinking out loud on 08/04/2013 07:42 PM

The formal way they put the money in the system is as follows.

1. Find a chimp like Timothy Geithner.
2. tell him he can spread new, shiny, money around the village as long as he comes up with a pseudo-scientific way of amortizing work product. ( a tbill that can be sold to non 'mericans)
3. When he fails, even on a personal level, you should at least get a war or something out of it.

Rinse, repeat, until they stop teaching Keynesian Economics in universities.

hell, $198 billion is chump change, these days.

.

Well considering The Fed only had about $250 Billion in Capital Reserves...

Not so much...

Lack of capital at the fed? I don't see how this is possible since they create capital out of thin air.

I see them requiring more printing and further the severity of inflation.

Of course it did. 2.75% is a psychological resistance point. A close at that level or above could cause a panic.

They don't create Capital out of thin air, they create Debt out of thin air, then they use that debt to buy assets (Bonds), the Capital was the profits they had made from the purchase then subsequent sale (or increase in value) of those assets...

But when those assets they purchase with debt lose value...they lose Capital...

THIS^ 10000% correct answer.

Ok, yeah you're right. Are you saying that if the Fed runs out of capital it will be unable to issue debt (sell bonds) because of trust?

Bingo!

so like always.

we have such valuable information, what is it's worth?

we don't believe each other, or the content.

so it's obviously a lose lose.




or, reality is we are all living a lie and refuse to take a rational step towards our future.

that would be asking too much. let's just sit here behind our internet hub and preted like what we learn makes a difference.

anyone seen any good movies lately? that's a better conversation then what we currently have.




even if the controlled economy (which it is) is about to die, (again, which it is) - then what good is this knowledge to us, the common man's observer?

we're nothing more than a checker piece on a chess board.

Knowledge is power...

If you know, and if you believe, you can take the steps necessary to protect yourself from the worst of it...

It's not that hard to manage your own wealth, despite what they tell you on TV...

Last Edited by Saddletramp on 08/04/2013 08:10 PM

bonds and debt killed the Roman empire.

Its the greed of the leaders that cause it.

nothing more and nothing less.

k

Kyle Bass said this over a year ago, he gave Japan two at that time, so it is getting close.

So basically debt saturation achieved?

End game/ponzi scheme...

Everyone go back to start.

You can do all the right managing knowing how the end game is going to play out, then your drug induced neighbor (who can't get any more prescription drugs) comes over and ruins it...

there is no individual wealth.

this is all our mistake.




there is no wealth. we are incabible of earning wealth. the system is not meant for that.

sure, we are thought to think we have a considerable ability to be wealthy - there is no attainable level of wealth.

so we sit here, on a sunday night / monday morning and pretend like what we know means anything. whether you have 5 zeros or 6 zeros or 7 zeros at the end of your bank statement..

we're all a single pawn in a rigged game of chess.

Chump change? What are you an idiot?

we're all here just a short time... When the end comes, we take nothing with us... Pray, eat, love...

Now, call me silly, but what's keeping the Fed from simply making up counter-parties to the debt issuance?

Who's going to audit them as long as they cash-flow the deficit and Obama can keep going on multimillion dollar vacations?

They can conjure up debt customers via 3rd party banks, using the primary dealers as the go-between.

I'm betting this has already been going on for a while now.

Until this shows up as raging inflation, no one will think to stop it.

My question is WHY the bond rate has been allowed to raise? It seems too early for the Fed to lose control, since gas isn't 10/gal yet.

bump to follow tomorrow

That's what they've been doing with QE3.5, trading Long Term Treasuries for worthless Mortgage Back Securities with toxic assets lumped in from Mega Banks in a vain attempt to extend the looting and re-inflate the housing bubble.

just a quick question on the issuance of treasury bills

do these come from the Federal Reserve Bank or the Treasury Dept? or both?