{"id":541,"date":"2018-02-20T08:38:20","date_gmt":"2018-02-20T14:38:20","guid":{"rendered":"https:\/\/www.jamesdeprisco.com\/?p=541"},"modified":"2018-02-20T08:38:20","modified_gmt":"2018-02-20T14:38:20","slug":"fed-vs-gov","status":"publish","type":"post","link":"https:\/\/www.jamesdeprisco.com\/fed-vs-gov\/","title":{"rendered":"Fed vs Gov"},"content":{"rendered":"

From ZeroHedge:<\/p>\n

As explained last night<\/a>, the Treasury will sell 3-month bills worth $51 billion and 6-month bills for $45 billion, both unprecedented in their size, with a historic total of $179 billion in bills and notes for sale today:<\/strong><\/p>\n
\n
11:30am: U.S. to Sell $51BN 3-Month Bills<\/li>\n
11:30am: U.S. to Sell $45BN 6-Month Bills<\/li>\n
1pm: U.S. to Sell $55BN 4-Week Bills<\/li>\n
1pm: U.S. to Sell $28BN 2-Year Notes<\/li>\n<\/ul>\n
In sum, total issuance this week is expected to hit a record$258 billion<\/strong>.<\/p><\/blockquote>\n
Note that the new supply is all short duration. \u00a0As I explained awhile back, we could enter into a paradox where the Fed can’t shrink it’s balance sheet. \u00a0I pointed out that the central government could shift debt issuance to the short end of the curve. \u00a0This will put pressure on the Fed Funds Rate (try to move it higher). \u00a0However, the Fed fixes the rate (using their god-like omniscience to know the “correct” rate) and will be forced into the market to buy up supply. \u00a0In short, the Fed’s “unwind” will instead change into their shifting their balance sheet from long dated Treasuries to shorter duration, and the overall balance sheet will remain unchanged. \u00a0How else can they keep control of the Fed Funds?<\/p>\n
We saw this a few weeks ago when the Fed stepped in with $12 Billion of Swaps with overseas banks to supply them with dollars when they were getting into trouble. \u00a0I don’t know when those expire, but that will be an interesting day.<\/p>\n
The Fed is caught. \u00a0They can’t fix the fundamental problem: the socialist policies of our Central Government. \u00a0You can’t make reality go away — we are a banana republic. \u00a0The answer is to balance our budget, and even run a slight surplus. \u00a0We have to give up on fascism\/socialism, that is reality. \u00a0Politically that is impossible, so enjoy the show. \u00a0Keep an eye on gold, but do your own research.<\/p>\n","protected":false},"excerpt":{"rendered":"
From ZeroHedge: As explained last night, the Treasury will sell 3-month bills worth $51 billion and 6-month bills for $45 billion, both unprecedented in their size, with a historic total of $179 billion in bills and notes for sale today: 11:30am: U.S. to Sell $51BN 3-Month Bills 11:30am: U.S. to Sell $45BN 6-Month Bills 1pm:…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"libsyn-item-id":0,"libsyn-show-id":0,"libsyn-post-error":"","libsyn-post-error_post-type":"","libsyn-post-error_post-permissions":"","libsyn-post-error_api":"","playlist-podcast-url":"","libsyn-episode-thumbnail":"","libsyn-episode-widescreen_image":"","libsyn-episode-blog_image":"","libsyn-episode-background_image":"","libsyn-post-episode-category-selection":"","libsyn-post-episode-player_use_thumbnail":"","libsyn-post-episode-player_use_theme":"","libsyn-post-episode-player_height":"","libsyn-post-episode-player_width":"","libsyn-post-episode-player_placement":"","libsyn-post-episode-player_use_download_link":"","libsyn-post-episode-player_use_download_link_text":"","libsyn-post-episode-player_custom_color":"","libsyn-post-episode-itunes-explicit":"","libsyn-post-episode":"","libsyn-post-episode-update-id3":"","libsyn-post-episode-release-date":"","libsyn-post-episode-simple-download":"","libsyn-release-date":"","libsyn-post-update-release-date":"","libsyn-is_draft":"","libsyn-new-media-media":"","libsyn-post-episode-subtitle":"","libsyn-new-media-image":"","libsyn-post-episode-keywords":"","libsyn-post-itunes":"","libsyn-post-episode-itunes-episode-number":"","libsyn-post-episode-itunes-season-number":"","libsyn-post-episode-itunes-episode-type":"","libsyn-post-episode-itunes-episode-title":"","libsyn-post-episode-itunes-episode-author":"","libsyn-destination-releases":"","libsyn-post-episode-advanced-destination-form-data":"","libsyn-post-episode-advanced-destination-form-data-enabled":"","libsyn-post-episode-advanced-destination-form-data-input-enabled":false,"libsyn-post-episode-premium_state":"","libsyn-episode-shortcode":"","libsyn-episode-embedurl":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,8,5],"tags":[],"aioseo_notices":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/posts\/541"}],"collection":[{"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/comments?post=541"}],"version-history":[{"count":1,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/posts\/541\/revisions"}],"predecessor-version":[{"id":542,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/posts\/541\/revisions\/542"}],"wp:attachment":[{"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/media?parent=541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/categories?post=541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jamesdeprisco.com\/wp-json\/wp\/v2\/tags?post=541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}