Fed Monetizes 1 Trillion in MBS and Treasuries for 2013

Quote from CT10Gov:

TARP == Treasury, not the Fed.

Look at SOMA, guy, and tell me if there's 'toxic' stuff in there. Go ahead.
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Right on TARP.

I don't care about SOMA guy.

by the way, the point about the FED controlling the ROI on shit assets because it controls the money supply went totally over your head. Should be obvious that infusing ~3 Trillion in cash would cause a minor uptick in asset prices. As far as the book value goes, for the larger inventories held by the FED, the value of what they hold and what they don't is a pure guessing game. Sure, it's all marked to market, but try dumping a 1 trillion portfolio of MBS and see what price they get for it. You know what they'll do? Inject another 1 or 2 Trillion of funny money into the banking sector to create the liquidity to absorb the offload. Same shit different day
 
Quote from achilles28:

I don't care about SOMA guy. /B]
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And given SOMA is what the Fed actually holds, you are basically saying that you don't actually care to talk about what you are talking about.

In that case, carry on with your rant...
 
^No idea, but CNBC reported a few weeks ago that while China is now a major gold producer, no Chinese produced bars could be found in an international serial number database used to track and verify bars. From that, they speculated that most, if not all, domestic production was bought up by the Chinese Central Bank.
 
Quote from CT10Gov:

Of course they did (to the extent that BoA and the others had the securities on in their trading inventory). But the VAST majority of assets in SOMA is sold to the Fed from the investor community.

Are you confusing QE/SOMA with TARP? TARP was done by the Treasury, not the Fed.
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Not at all. I'm speaking strictly to QE. What percentage of the MBS came from the investor community vs. the primary dealers. Do you know that off hand?


Quote from CT10Gov:


Of course. But if there's no open market operation (ie, no more new purchase for SOMA), the money supply starts to shrink from the redemption effect.
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Yes! But the redemption effect is a slow process. Inflation usually isn't. The shrinking will take time, and if the Fed sees it has to raise rates during this time, it will be fighting the effects of it's QE policy at the same time as it fights the economy getting "better".

Please don't ask me to type this yet again. If you still don't agree with me, let's just leave it at that.
 
Quote from achilles28:


Should be obvious that infusing ~3 Trillion in cash would cause a minor uptick in asset prices. As far as the book value goes, for the larger inventories held by the FED, the value of what they hold and what they don't is a pure guessing game. Sure, it's all marked to market, but try dumping a 1 trillion portfolio of MBS and see what price they get for it.
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Precisely.
 
Quote from CT10Gov:

And given SOMA is what the Fed actually holds, you are basically saying that you don't actually care to talk about what you are talking about.

In that case, carry on with your rant...
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No, that's what YOU'RE talking about. Anyone can check out whats on the FEDs balance sheet. So what? Whats your point exactly? About a million points have been made on this thread, and all you wanna do is talk up the FEDS balance sheet all day as if they're modern day prophets. Pure jokes.
 
Quote from achilles28:

^No idea, but CNBC reported a few weeks ago that while China is now a major gold producer, no Chinese produced bars could be found in an international serial number database used to track and verify bars. From that, they speculated that most, if not all, domestic production was bought up by the Chinese Central Bank.
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Thanks. That's interesting. I need to look into that more.. So.. basically there's no way of knowing how much gold China has.. it sounds like. And, if they are keeping all their gold plus the gold that is reported. That's a whole heck of a lot of gold.. when paper currency is racing downhill.
 
Quote from achilles28:

^No idea, but CNBC reported a few weeks ago that while China is now a major gold producer, no Chinese produced bars could be found in an international serial number database used to track and verify bars. From that, they speculated that most, if not all, domestic production was bought up by the Chinese Central Bank.
More...

Sweden, not Japan.

China has massive mining operations all over Africa. I have friends that visit Addis Ababa from time to time and witness the efforts firsthand. Essentially the Chinese arrive and offer to build infrastructure for the local gov't (for very cheap or free) in return for mining rights. Both jobs use their own Chinese (mostly slave) labor.

No one knows how much ore is actually coming out as it goes straight back home to be held by the Chinese gov't.
 
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