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Fed Passes China in Treasury Holdings (Soon Fed will hold more than China and Japan Combined)
Economic Policy Journal ^ | 2/2/2011 | Robert Wenzel

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 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


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: deficit; fed; monetization
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1 posted on 02/03/2011 11:26:51 AM PST by FromLori
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To: The Comedian; FromLori

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.....


2 posted on 02/03/2011 11:29:58 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: FromLori
Remember, Social Security, which used to buy up to 25% of all Treasury securities is now a net liquidator of them.

That'll end well, I'm sure.

3 posted on 02/03/2011 11:30:46 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: Lurker

In two years, that could be the denomination of the bills used for toilet paper.


4 posted on 02/03/2011 11:31:26 AM PST by dirtboy
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To: FromLori
Money Supply Chart
5 posted on 02/03/2011 11:34:58 AM PST by DannyTN
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To: FromLori
(Soon Fed will hold more than China and Japan Combined)

Ummmm....1600 is less than 1773 (896 + 877).

6 posted on 02/03/2011 11:37:07 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Lurker

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.


7 posted on 02/03/2011 11:37:55 AM PST by screaminsunshine (Surfers Rule)
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To: FromLori
When will kids in Zimbabwe show off their US trillion dollar bills?
8 posted on 02/03/2011 11:38:04 AM PST by KarlInOhio (Washington is finally rid of the Kennedies. Free at last, thank God almighty we are free at last.)
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To: Toddsterpatriot

The key word was “soon”. Guess you missed that.


9 posted on 02/03/2011 11:38:39 AM PST by Lurker (The avalanche has begun. The pebbles no longer have a vote.)
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To: FromLori

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.


10 posted on 02/03/2011 11:40:04 AM PST by Robbin (If Sarah isnÂ’t welcome, IÂ’m not welcome, itÂ’s just that simpleÂ…)
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To: KarlInOhio

If we get that hyper-inflated, we’ll be migrating to Egypt for the peaceful climate there, compared to how it will be here.


11 posted on 02/03/2011 11:40:16 AM PST by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: FromLori
known as Soma

Hmm...........Soma was the name of the drug used by the government to keep the people complacent and subservient in Brave New World..............

12 posted on 02/03/2011 11:40:23 AM PST by Red Badger (Whenever these vermin call you an 'idiot', you can be sure that you are doing something right.)
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To: Lurker

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.


13 posted on 02/03/2011 11:41:32 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Lurker

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.


14 posted on 02/03/2011 11:42:03 AM PST by org.whodat
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To: DannyTN

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


15 posted on 02/03/2011 11:42:14 AM PST by FromLori (FromLori">)
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To: FromLori

Cue Ernie Ford...”I Owe My Soul to the Company Store”.


16 posted on 02/03/2011 11:47:26 AM PST by csmusaret (Q: How do they say incompetent failure in Kenya? A: Barack Obama)
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To: Toddsterpatriot

You should have a little Fed Troll avatar


17 posted on 02/03/2011 11:48:31 AM PST by FromLori (FromLori">)
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To: FromLori

18 posted on 02/03/2011 11:51:06 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: FromLori
A side point: if the clime is still favorable for quantiative easing, the Fed could take a lot of the PRC's holdings off their hands in a future QE.
19 posted on 02/03/2011 11:56:34 AM PST by danielmryan
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To: Toddsterpatriot

20 posted on 02/03/2011 11:59:09 AM PST by FromLori (FromLori">)
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