Fed Has Bought More U.S. Gov’t Debt This Year Than Treasury Has Issued

[pmbug]

...
Federal Debt outstanding as of the end of the calendar year 2012: 16,432,730,050,569.12

Federal Debt outstanding as of February 6, 2013: 16,479,954,658,103.57

Amount of Increase in Debt: 47,224,607,534.40

If I did my math correctly, the size of the Federal Debt increased $47.224 Billion since the beginning of the year.

http://www.federalreserve.gov/releases/h41/Current/

Now look at the Fed Balance sheet holdings of US Treasuries over that same period.

Fed Treasury Holdings as of Wednesday, January 2, 2013: 1,666,118
Fed Treasury Holdings as of Wednesday, February 6, 2013: 1,717,182

Amount of Increase in Fed Treasury Holdings since the beginning of the year: $51.064 Billion

That is $3.879 BILLION MORE than the US Treasury has issued this year!

Again, I have no idea how this is supposed to be possible but the numbers are what they are. ...

http://traderdannorcini.blogspot.com/2013/02/federal-reserve-buyer-of-only-resort.html

 

[ancona]

PMBug,
The delta would be comprised of bills issued prior to this period and just now flipped back to the Fed. This shell game cannot go on forever, as the rest of the world will grow weary of watching us devalue our money in full view. Our arrogance will be our downfall.

Let the bread lines be formed and the circuses commence. We simply must be entertained. Any news on Beyonce?

 

[bushi]

PMBug,
The delta would be comprised of bills issued prior to this period and just now flipped back to the Fed.(...)

...so, tell me again, Mr. Bernanke, how do you plan to fight the possible inflation, and/or interest rates rise, if (lets politely assume "if", not "when") it knocks on the door? Why, you would sell all these TBills to the market, to extinguish some of the M1, right? Right... You would sell it to the same market, that even TODAY, is getting rid of your Treasury paper, right? Right...

 

[pmbug]

Tangentially related ot the OP:

... in December 2012 total US paper held by foreigners was $5,573.8 billion; one year later it rose to $5.794.9 billion or a $221 billion increase. So how does this look in the context of QE? In the past year, courtesy of the Fed's $1 trillion in TSY and MBS purchases, Ben Bernanke purchases some $552 billion in Treasurys, or about 150% more than all foreigners combined! ...

http://www.zerohedge.com/news/2014-02-19/2013-fed-bought-150-more-treasurys-all-foreigners-combined

 

[11C1P]

Replace town with country, and the joker nailed it.

[ame]http://youtu.be/tYaki2ZvhSE[/ame]

 

[ancona]

It is but a matter of time now.