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Federal Reserve Balance Sheet Hits $8 Trillion.
The Houston Courant ^ | 6/28/21 | Houston Courant

Posted on 07/01/2021 5:06:50 AM PDT by The Houston Courant

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To: NELSON111
Obama added 6.781 trillion in 8 years to the debt....the highest ever.

Trump added 4.8 trillion in 4 years but that included 2 trillion for the stimulus package.

The difference is...We got something for our money. Taxes were restructured. The military benefited. The border was finally being brought under control. Millions got checks for $1,400 to help with the devastation of the shutdowns by the governors.

In other words, the deficient was an investment.

21 posted on 07/01/2021 7:01:38 AM PDT by Sacajaweau
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To: The Houston Courant

“We will not raise interest rates pre-emptively because we fear the possible onset of inflation. We will wait for evidence of actual inflation or other imbalances.”

The Federal Reserve is apparently legally blind.


22 posted on 07/01/2021 7:08:47 AM PDT by Flick Lives (“Today we celebrate the first glorious anniversary of the Information Purification Directives.”)
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To: Renfrew

This chart is a year old but shows a lot of foreign countries holding big bucks in US debt:

https://www.statista.com/statistics/246420/major-foreign-holders-of-us-treasury-debt/


23 posted on 07/01/2021 7:28:28 AM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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To: SecondAmendment

That is normally the case. Except its not.

The Fed is still purchasing MBS at an alarming rate; they are the largest single holder of mortgages in the nation.

Also, the banks are making their Net Interest Margin by placing their reserves at the Fed overnight—so they don’t HAVE to lend.

I understand how the banking system works. The Fed buying mortgage backed securities is not “normal.”


24 posted on 07/01/2021 7:31:59 AM PDT by Vermont Lt
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To: The Houston Courant

8 trillion in “assets” = 8 trillion dollars of US government bonds.


25 posted on 07/01/2021 7:36:55 AM PDT by webheart (I already had COVID disease and 2 vaccine shots Can I take the mask off now?)
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To: Sacajaweau

He’s not one of us, that’s for sure.


26 posted on 07/01/2021 7:46:35 AM PDT by BlueMondaySkipper (Involuntarily subsidizing the parasite class since 1981)
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To: The Houston Courant

And the debt is supposedly $26t. In the business world, your BANKRUPT.


27 posted on 07/01/2021 8:01:33 AM PDT by DownInFlames (G)
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To: cgbg

“This chart is a year old but shows a lot of foreign countries holding big bucks in US debt:”

About half the debt is still held by foreign and domestic investors. The other half is owed to the government itself.

But if those foreigners decide they no longer want US debt at 1% interest rates, the gov’t doesn’t need to raise rates. They have the out of simply selling to themselves at 1% interest.

It’s a big change in the last 10 years. Every government in the world has quietly embraced Modern Monetary Theory without any public discussion on what that means.


28 posted on 07/01/2021 8:28:49 AM PDT by Renfrew
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To: The Houston Courant

Bump for later.


29 posted on 07/01/2021 8:50:37 AM PDT by 4Liberty (Honest GOP can't use legal means because Dems use illegal ones (threats). The Robert Creamer Party! )
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To: cgbg
The Fed has painted itself into a corner—and they will stay there until there is hyperinflation.
They will then say: “We never saw it coming.....”

The Feds Four Stage excuse (Hat tip to "Yes, Prime Minister")

30 posted on 07/01/2021 12:31:27 PM PDT by Oatka
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To: Sacajaweau

“””Obama added 6.781 trillion in 8 years to the debt....the highest ever.
Trump added 4.8 trillion in 4 years but that included 2 trillion for the stimulus package.

The difference is...We got something for our money. Taxes were restructured. The military benefited. The border was finally being brought under control. Millions got checks for $1,400 to help with the devastation of the shutdowns by the governors.

In other words, the deficient was an investment.”””


I agree with all of your points and would add-—

Trump also grew the economy. When we have full employment and rising ‘real’ wages, that leads to more taxes and lessens the impact of an increase in the debt.

Obama did not grow the economy.


31 posted on 07/01/2021 2:20:15 PM PDT by Presbyterian Reporter
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To: Vermont Lt
> I understand how the banking system works. The Fed buying mortgage backed securities is not “normal.”

Thanks for the info I think, since if I understand you correctly this is an extremely bad thing, and probably explains why Biden was so eager to fire Trump's FannieMae/FreddyMac guy.

32 posted on 07/01/2021 3:52:45 PM PDT by SecondAmendment (This just proves my latest theory ... LEFTISTS RUIN EVERYTHING !)
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To: The Houston Courant

“The holdings illuminate the increasing role the central bank is playing the economy as the United States”

Translation: “We’re having a hard time selling out debt to other people.”

What the Federal Reserve has been doing is buying parking lots at bank for a $1 billion as “holdings”.


33 posted on 07/01/2021 3:59:01 PM PDT by CodeToad (Arm up! They Have!)
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To: DownInFlames

“And the debt is supposedly $26t.”

$28.5T as of today.

https://www.usdebtclock.org/


34 posted on 07/01/2021 4:00:34 PM PDT by CodeToad (Arm up! They Have!)
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To: C210N
about 200 FED shareholders

Every Fed member bank owns shares. Each bank gets one vote, no matter how many “shares" they own.
In 2020, shareholders received $386 million in dividends.
Guess how much the US Treasury got in 2020......$88.5 billion.

35 posted on 07/06/2021 3:05:20 PM PDT by Toddsterpatriot (TANSTAAFL)
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To: Vermont Lt
Also, the banks are making their Net Interest Margin by placing their reserves at the Fed overnight—so they don’t HAVE to lend.

The Fed is paying 0.15%. How much is the Net Interest Margin for US banks?

36 posted on 09/16/2021 8:32:17 PM PDT by Toddsterpatriot (TANSTAAFL)
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To: Toddsterpatriot

Risk free? With literally no overhead? Not much more.


37 posted on 09/17/2021 12:50:36 PM PDT by Vermont Lt
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To: Vermont Lt
Everything I've seen shows that Net Interest Margin is much, much higher than 0.15%.

If you have a link proving it's near 0.15%, post it.

38 posted on 09/17/2021 1:51:23 PM PDT by Toddsterpatriot (TANSTAAFL)
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To: Renfrew
Every government in the world has quietly embraced Modern Monetary Theory without any public discussion on what that means.

It means they will continue to pretend they are all solvent (or at least able to pay their debts), otherwise the whole house of cards comes down worldwide. It is a classic Mexican standoff.

39 posted on 09/17/2021 2:00:24 PM PDT by kosciusko51
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To: Toddsterpatriot

I have ten years as a senior executive in a bank.

Do you? Look it up. I am not here to do your research. This isn’t high school.


40 posted on 09/17/2021 2:36:04 PM PDT by Vermont Lt
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