Primary Dealers Scramble To Sell All Recently Auctioned Off Treasurys To Fed
“And at least that , the PDs will stop collecting commissions on arbitrary bid/ask spreads.”
Then they would have to invent some other to transfer taxpayer dollars to the PD’s.
Ponzinomics. Crony Capitalism. Fascist Manipulation.
Take your pick as to what you want to call this garbage.
The law of diminishing returns cannot be ignored.
But you can separate bedrooms.
The first PD that tells the FED “No more” and dumps everything wins. I wonder who it will be.
tick tick tick tick…..
That’s the sound of your life running out.
Take care, Blythe.
“After all nobody is fooled” AGAIN!
there I fixed it for ya.
I posted yesterday’s note about this to my Facebook, hoping my friends will pick up on the fact that we are paying all these bank fees — you don’t have to understand the intricacies of the POMOs and MOMOs to figure that out — but zero response far.
They’re not even renting this stuff any longer. They’re sniffing it and throwing it back.
They will have a TSA agent at bank entrance; felt up by sister Janet or pay a toll.
That’s it. I’m to abandon the witch costume Halloween and dress up as a TSA agent. It’s scarier.
when does this all start to affect the dollar’s value? It seems no matter what happens, the dollar has remained strong.
Could we see prices rising across the board with the stock market rising too but the dollar remaining at current value?
What other fiat currency will survive a dollar crash?
That’s the Trillion Dollar Question isn’t it.
I’ve personally been hypothesizing the idea that growth is limited by energy availability. oil production has capped, world growth cannot exceed energy (i.e. not all countries can exponentially increase building and resource consumption due to limited energy availability). I believe the idea has been pushed a little and I am not the first to of it.
I the movie will be a new reserve currency based on the value of China, Russia, United Arab Emirates, and Opec nations. But thats my guess. If we don’t see a new reserve currency based on a basket of currencies maybe we will see a reserve currency based on energy availability. As it stands , there are too countries who are losing out due to the U.S.’s gross negligence as the reserve currency controller.
The EURO of course.
Rothschilds, Russians and Chinese sure of that.
Dollar compared to what? The dollar is trash but are most all other world currencies. Commodity prices are strong considering how weak a lot of demand is worldwide. mean that the common man is having a love affair with copper (was it featured on Jersey Shore?) or with the excess currency is bidding up assets. We had a turn this week, but I’m sure with all the CBs printing up a storm it will amrch back up.
I see your point, but as I said in the post directly above, the world will reach a brick wall in terms of energy availability. We can all continue this game of printing money to but if they can’t past peak oil then demand will outstrip supply which will mean will have to give.
Not exactly. More accurately, in terms of CHEAP energy availability. While wind power is a scam, solar keeps getting cheaper, and nuclear would be cheap if not for the radical greens keeping it down with federal regulation and paperwork. don’t forget long haul trucking and transport FedEx, UPS, and USPS could switch to natural gas.
Fuck TD…. holding these fuckers’ feet to the fire
Priceline…..down? How can this be? The end is nigh! Repent!
Bye bye Chase, -3.6%. ABC ya, wouldn’t wanna be ya.
He! THIS ISN’T A BUY AND HOLD MARKET, WHAT DID YOU EXPECT!
Let’s introduce the HFT to the bonds market!
What a circle jerk. We need a graphic.
and naked chicks. Lots and lots of it!
POMO is no longer even helping gold…or Illinois
ES down 9 handles, wow. Without checking, I it’s been a while and it is surreal to see this, albeit extremely mild in nature. Ha ha, can you tell I’m very demented?
Day for spx, day 5 for gold. It’s the beginning
…maybe ,,,a slow bleed is more preferred .
You better hope . It’ll be the first slow motion crash in stock market history though.
I was 2008 as an historical reference.
Ahh those were the days my friend. I will back fondly on the cliff at the end of the world.
Nice….! ’08 seems a blur to me . This time, I want to sit back and enjoy the true apocalypse. better prepared…..
Money leaving stocks, leaving PMs, leaving bonds..
Ok, it evaporates into thin air?
I am but a lay person here but I believe it is under the Sealy Posturepedic mattress.
Fuel, Food stores, Amo, Dry goods…
Bang Dae Ho
Bang Dae Bid
Bang Dae Pomo
Didnt G. Lira have to say about this?
From 60 Minutes Interview
Bernanke: , this fear of inflation, I is overstated. We’ve looked at it very, very carefully. We’ve analyzed it which . myth that’s out there is that what we’re doing is printing money. We’re not printing money. The amount of currency in circulation is not changing. The money supply is not changing in any significant . What we’re doing is lowing interest rates by buying Treasury securities. And by lowering interest rates, we hope to stimulate the economy to grow faster. , the trick is to find the appropriate moment when to begin to unwind this policy. And that’s what we’re gonna do.
No follow up from Scott Pelley regarding “We’re not printing money.”
Maybe time they should have Andy Rooney interview him and ask “Do you a beard you smarter?”
The Bernank is engaging in disingenious Clintonian speak ( depends on what your definition of is is).
He is not “printing” money”. He did NOT say we are not “creating money”. The Bernank is very honest he would never lie. But he will answer the question or respond to an issue in a that is most helpful to him.
in the interview when they ask him about this (after a few months of double digit CPI numbers that are starting to distrubingly exponential) he can say
” we weren’t printing any money, the amount of paper dollars we produced everymonth did not change. What I said was true. we were creating money, it is more cost effective than printing. Perhaps in retrospective the approach was flawed. I thought I could stop inflation easily. It worked in our computer simulations, the numbers looked good, we used the best Wall Street financial experts to create them. No was more surprised than me when kept getting worse……”
You the picture, they are clever aren’t they, –not “printing” money” snicker snicker.
Obummer telling Americans with regard to obummercare is that we will be able to our current plans if we want. His lie is he our plans won’t us! And we will be forced to buy the government plan.
what a fucking blatant liar. I hate wordsmith attorneys.
It be technically true that The Fed is not minting new pieces of actual paper made from actual trees.
Could someone comment on what The Fed is actually the fuck doing? We say “adding zeros to a field in a spreadsheet” which is probably closer to the truth. But is that what they are actually the actual fuck doing?
My sense is that they are loaning money they don’t have (that multiplier ) to banks who don’t have , taking broken bank assets (MBS, CRE, whatever) as collateral. you and I both lending each other a million dollars neither has and taking each other’s broken wristwatch as collateral. It works fine until you try to spend the money, then they laugh at you and if you persist they throw you in jail or St. Sebastian’s Hospital for the Mentally Disconnected. Except that Fed fake money can overlap with and real money (which is fake, but roll with me here). Ben holds the broken wristwatch forever knowing it can never fetch a price above zero and if he ever tried it would revert to a market value (0) and blow up his (fictitious) balance sheet. That blow up the banks’ balance sheets as , depending on how Ben gave them their fake money, everyone does the wink-wink and sits back, happy with the it worked out.
I . I mean I don’t it.
The Bernank is a liar .
All this stuff is settled in ‘book entry’ form. There is no actual ‘treasury bond’ any more. The book entry system is run by the fed. when the Primary dealers sell a treasury bond to the fed. It is electronically transfered from the dealers account to the feds account. This transfer is done on a “DVP” basis, ‘deliver versus payment’. the dealer does the wire transfer to the fed of the electronic bond and at the same instant, the dealers cash account is credited with the money. Money that the fed creates out of nothing. The primary delaer can then take that money from their account and do whatever they want with it. See the Fed is the owner of the casino. A casino can create as money 1, 5, 20, 100, 1000 whatever size they want chips as then want. The fed is that, they own the biggest casino in the universe, the US Monetary system. They can create money by creating more ‘chips’
The Fed is fucking with the definition of money that’s for sure.
By bidding for UST’s they have created a bubble of unprecedented proportions. Huge amounts of government debt sit on the balance sheets of the various financial institutions, whilst private credit languishes. The issuance of government debt has exploded over the last few years, globally, not in the US, for debt deflation.
How are the primary dealers making(stealing) on these flips?
Everyone by that the FED has to auction off 150 billion worth of Debt each and month,to account for the US annual deficit of US 1.35 trillion plus the annual 414 billion of Interest on the 14 trillion national Debt.
That all adds up to an annual Budget Deficit of 1.8 Trillion US Dollars
or 1800 Billion US Dollars for the US Budget Deficit per year !
An that only keeps the American show on the road to fucking oblivion!
Divide that 1800 Billion US Dollars annual budget by 12 month and you out
looking for 150 billion each and month,Debt Auctions to usual S&M Hostages (PD)
and hopefully they won’t ask for more than 3% to hold the 10 year notes….
Life is a bitch when you pimped by big fat Bang da Hoe !
Saint Bernanke was right. The US should start to about the US deficit in the near future.
I asking myself why US citizens willingly made such mess out of it.
If only they had listened to him more early, he wouldn’t need to save them…
SPX clicked below Tuesday’s low. (Insert Twilihght Zone music here)
Oh good, YOU are a perfect candidate to
Buy the fucking dip.
Buy the fucking dip, bitches:
Gold price dip triggers physical buying
SINGAPORE/MUMBAI (Reuters) – Asian buyers rushed into the market after prices fell from record highs to for bargains, betting on growing demand and a bright price outlook for the rest of the year.
Premiums in Hong Kong had risen to as as $1.50 an ounce over London prices, from 70 cents to $1 at the end of last year.
“Supply is tight in the physical market,” said a Hong Kong-based dealer. ” days ago when we had the big drop, premium up to $1.50, but today it is a little quieter ahead of the U.S. employment data.”
imo if the bond market were down they would not be doing this. A quick flip for some fast cash is all it is. Nice to the notional price without having to actually dump them on the market. they will sell 100 million shares of AAPL at $335 to the bag man, er, sach’s man, er sack man, er taxpayer. Crony fascism at its finest.
I’m pretty sure right they’re wishing they’d held some of those bad boys as 5’s are up more than half a point.
That’s a lot of cheese on a few billion bonds…
ELX Futures Traded 100K of US Treasury Futures Contracts
The electronic futures exchange establishes a single-day volume record on Wed., Jan. 5th, showing it’s on a growth path, says CEO. By Ivy Schmerken More from this author
Aite Group Adds Ex-Bank Of America Exec To Wealth Management Tea Before joining Aite Group, Schmitt served as sales process manager for Bank of America’s Global Wealth and Investment Management groups, including the former Premier Banking & Investments group.
January 06, 2011
Tags: ELX Futures, Derivatives, Exchange,ELX Futures, L.P. set a new single-day volume record for U.S. Treasury futures contracts with over 100K contracts traded on January 5, 2011, according to the electronic futures exchange. The 30-year Treasury bond set a new record with over 21K contracts traded. ELX’s end-of-day electronic market share exceeded 12% in the -year Treasury futures contract and 5.5 percent in the 30-year Treasury bond. Overall market share was 4 percent at the end of the trading day. These new records follow a solid 2010 year-end performance that showed a 14 percent jump in average daily volume (ADV) in U.S. Treasury futures contracts year-over-year and several record-breaking milestones in ELX’s Eurodollar futures contract, including a 38 percent increase in ADV per month its launch in June 2010. In a statement, Neal Wolkoff, CEO of ELX Futures, commented, “ELX has kicked off the year with new records in our U.S. Treasury futures contracts. After ending 2010 on a high note, ELX has carried the positive momentum into the New Year, and we feel confident that we are on a growth path. It’s an exciting time for ELX and this only cements our reputation as a competitive alternative in the futures marketplace and shows the growing commitment from our market participants.”http://www.wallstreetandtech.com/articles/229000241?cid=nl_wallstreettech_daily
All of this comes down to bottom line: they are to take Americans’ money for themselves. I mean, what could it be? You want proof, Americans are losing their money, the investment banks through their representative, the Fed, are becoming filthy and obscenely rich. And, frankly, considerably richer than they publicly admit, or were, in October of 2008 when the world’s richest investment bank, Goldman Sachs, was broke
If Bernanke says he’s not printing money, it’s an accumulation of words. Treasury and the Fed create an endless stream of investment vehicles with complicated names and processes that the average investor cannot comprehend in order to find value in the American landscape wherever they can, to transfer it to the investment banks. How words and alphabet soups have we coined in the past five years that are meaningless? The banks richer, unemployment continues, American grow poorer—
Will There be QE3, QE4, QE5…? by Philippe Bagus | Jan 4, 2011
Recently, Ben Bernanke indicated that Quantitative Easing II (QE2) be followed by QE3, etc. In an interview at the beginning of December, Bernanke was asked, “Do you anticipate a scenario in which you would commit to more than $600 billion?”
Bernanke’s answer was startling. “Oh, it’s certainly possible,” he said. “And again, it depends on the efficacy of the program. It depends on inflation. And finally it depends on how the economy .”
The answer is interesting because it not only indicates the possibility that the Federal Reserve (Fed) will purchase more government bonds but implies that Bernanke thinks that inflation and QE are different concepts, because otherwise his claim would be a meaningless tautology: more inflation depends on inflation…
However, the fact that the new money is created electronically does not mean that QE2 is not inflationary. QE2 is inflationary in several ways:
First, base money (bank reserves) increases. When the Fed buys a government bond, it creates money that it transfers to the bank selling the bond. At the end of the operation, the bank has more bank reserves and the Fed owns the government bond.
Second, the quality of money tends to decrease. The average quality of assets that the Fed holds decreases when it buys government bonds. The percentage of gold of total assets that could be used in a monetary reform decreases, while the percentage of government bonds increases. Moreover, these bonds are for a government that is ever increasing its debts.
Third, prices will be higher than they would have been otherwise. Prices would probably have fallen substantially without QE1 and QE2. The injection of new bank reserves inhibited a credit contraction and falling prices. In fact, aim of QE2 is to bid up asset prices.
Money flows into the stock market, bidding up stock prices. In March 2009, when QE1 started, the Dow Jones was below 7,000 and rose to 10,800 until QE1 expired. When the Dow fell below 10,000 again, markets began to speculate about the possibility of QE2, and a new rally started.
While the newly created money flows to asset-price markets, consumer prices not surge strongly. But sooner or later, these investments will flow out of asset-price markets and start to bid up consumer goods’ prices.
Fourth, the exchange rate will be lower than it would have been otherwise. Market participants will value the dollar lower, given that the base-money supply increases and the dollar’s quality decreases. This devaluation is aim of QE2. It is a to give exporters an advantage. The devaluation is not as crude an instrument as a tariff but has similar effects. It consumers poorer. They have to pay higher prices for imported goods.
Consequently, QE2 is, despite Bernanke’s words, inflationary. In fact, it is a euphemism to call the policy QE2.
Reprinted from Mises.org.
declare hyper inflation is coming and it over with.
NOBODY CAN PRINT THEIR OWN MONEY TO PAY PETER WHO ROBBED FROM PAUL TO PAY PONTIUS.
along those lines..
there is too fucking debt and nothing to show for!
it will blow up and it will be nasty.
stocks are safer than treasuries.
PMs are safer than stocks.
when the mother of all meltdown happens, cash is good to wipe ass or heat the home.
interesting, it would appear that the PDs lost money on both the PB0 & PU8 issues? PB0 issued in October 99-25+ but was trading 98-28 today during the POMO window, and PU8 issued in November 99-24+ but was trading 98-23 this morning. Of course, no what price Sack is paying, .
FAQ’s at the FRBNY site: Will the Desk release operation pricing results?Yes, the Desk will begin to publish information on prices paid in individual operations at the end of each scheduled period, coinciding with the release of the period’s schedule. The Desk plans to publish the first pricing information on December 10, 2010, which will cover the operations included in the November 10, 2010 schedule. For each security purchased in each operation, the Desk will release the weighted-average accepted price, the highest accepted price, and the proportion accepted of each proposition submitted at the highest accepted price.
The free market prices these securities (based upon the supply of, and demand for, loan funds).