Courtesy of Tyler Durden
A Look At The Federal Reserve’s Balance Sheet
Always good to keep things in perspective. The most recent Fed Balance Sheet reading of $2.16 trillion is a doozy and is only getting higher, and a couple hundred bucks away from the highest ever recorded of $2.17 trillion a month ago. This is just the beginning: Bernanke at Co. have committed to monetizing $1.75 trillion of securities this year, of which $1.21 trillion remain to be purchased still. This means that the chart will likely pass the $3 trillion mark at some point over the next 3-6 months. As to the yield on these securities once the total is over $3 trillion, if the current trendline of UST pounding is any indication, look for something north of 5%.
Just as a reminder, the total foreign central bank holdings of Treasuries and Agencies of $2.7 trillion.
Very soon America’s largest creditor will be… America.
