Posted on 02/03/2011 11:26:48 AM PST by FromLori
No wonder Geithner called in all the Treasury secretaries for a dinner meeting this past Sunday.
The Federal Reserve has surpassed China as the leading holder of US Treasury securities even though it has yet to reach the halfway mark in its latest round of quantitative easing, according to official figures.
Based on weekly data released on Thursday, the New York Feds holdings of Treasuries in its System Open Market Account, known as Soma, total $1,108bn, made up of bills, notes, bonds and Treasury Inflation Protected Securities, or Tips, reports FT.
According to the most recent US Treasury data on foreign holders of US government paper, China holds $896bn and Japan owns $877bn.
And get this. "By June [the Fed] will have accumulated some $1,600bn of Treasury securities, likely tobe in the vicinity of China and Japans combined holdings, Richard Gilhooly, a strategist at TD Securities, told FT.
I hope you are ready for inflation. This is not going to stop anytime soon. Remember, Social Security, which used to buy up to 25% of all Treasury securities is now a net liquidator of them. If not the Fed, then who is going to buy this paper?
We are headed into an extremely dangerous inflationary period
I wrote myself a check for $10,000,000.00 this morning. What with all the bad economic news I wanted to have some money in the bank.....
That'll end well, I'm sure.
In two years, that could be the denomination of the bills used for toilet paper.
Ummmm....1600 is less than 1773 (896 + 877).
You mean there is no surplus for them to waste anymore? Soon the Democrats will hate social security. It is costing them money they could use for vote buying.
The key word was “soon”. Guess you missed that.
This is the warning shot across the Bow I really think its too late to avert disaster. Time to PREPARE for hyper inflation and economic collapse.
If we get that hyper-inflated, we’ll be migrating to Egypt for the peaceful climate there, compared to how it will be here.
Hmm...........Soma was the name of the drug used by the government to keep the people complacent and subservient in Brave New World..............
Soon they’ll hold $1.6 trillion. That is still less than $1.773 trillion. In the future it’ll be less than $1.773 trillion. In the past it was less than $1.773 trillion.
Pretty well sums up this story, call the bank and tell them you cannot be out of money you still have lots of blank checks.
Fed passes China in Treasury holdings
“The Fed is buying Treasury debt under two programmes. The largest is QE2, which began in November and is scheduled to involve $600bn of purchases by June.
It is also buying $30bn of Treasuries a month as it reinvests principal payments from its large holdings of mortgage debt and debt issued by government housing agencies a programme dubbed QE lite.
http://www.ft.com/cms/s/0/120372fc-2e48-11e0-8733-00144feabdc0.html#axzz1CvUHqQkr
Cue Ernie Ford...”I Owe My Soul to the Company Store”.
You should have a little Fed Troll avatar
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