Since our last update on 11/9/11, US Treasury cash has increased from just under $17 billion to a healthy $61.59 billion. In that update, we noted that the peculiar lagged correlation between the US Treasury’s total operating balance and US equities had begun to break down meaningfully for the first time since the establishment of greshams-law.com. Indeed, this trend has continued over the past two weeks. Here I present a quick review of recent operations by the US Treasury and an update of the usual daily treasury statement charts.

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The total size of the Fed’s balance sheet increased by just under $5 billion over the week ending 31/8/11. Here I present the usual charts of the Federal Reserve’s assets and liabilities.

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Since our last update on 31/8/11, the US Treasury’s cash balance has fallen and hovered around historically low levels. Moreover, the alchemistic lagged correlation between the US Treasury’s cash balance and the stock market (inverted) seems to have broken down over the past week. Here I present an update of the usual daily treasury statement charts.

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After four months or so of trading in a tight range, it seems like the dollar is well and truly on the move! Of course, there is no guarantee that this will continue over the coming weeks and months, but nevertheless we think that it’s important to understand the ironic and paradoxical reasons for a strengthening dollar (against some of the other sinking currencies of the world). Rather than repeating what has been said here on greshams-law.com over the past few months, I thought I’d present a few articles that may be of interest now that the dollar is on the rise!

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Inline with our intention to present many more central bank balance sheet charts over the coming months, here we present several charts of the Bank of Japan’s balance sheet in the usual format.

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As mentioned in our recent article about the international effects of dollar debasement, we will start posting updates of many more central bank balance sheets over the coming months. We’ll try to present them in a similar way to our Federal Reserve balance sheet charts and — as always — we’re open to requests, suggestions and criticisms. Here I present several charts relating to the balance sheet of the Eurosystem.

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In recent updates, we noted that the US Treasury’s cash balance had been hovering around historically low levels. Indeed, on August 17th the cash balance reached just $10.9 billion — the lowest level since September 2008. Over the past week, the total operating balance of the US Treasury has reverted back to normal levels.

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