Look Uncle Miltie he picked up the phone
Fed Passes China in Treasury Holdings (Soon Fed will hold more than China and Japan Combined)
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 Fed’s 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 Japan’s 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
http://www.economicpolicyjournal.com/2011/02/fed-passes-china-in-treasury-holdings.html
I started getting ready for inflation in November, 2008, when it became clear that the Federal response to an economic emergency would be the profligate printing of dollars.
I’m in gold, oil, foreign stocks and bonds (unhedged), REITs, regular stocks (can increase retail prices as necessary), TIPS and short term bonds.
That’s as good as I can do without doing crazy stuff.
Plus, I’m literally buying dirt. And seeds. And guns.
Only in Lori-world, where 1600 is greater than 1773.