The total size of the Fed’s balance sheet decreased by around $6 billion over the week ending August 31, 2011. Currently the Fed seems to be sticking to the plan of cleaning up the composition of its balance sheet.

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The total size of the Federal Reserve’s balance sheet increased by around $1.5 billion over the week ending August 24, 2011. Moreover, further evidence of a dire desperation for dollar funding emerged as the Fed increased its lending to foreign central banks and shuffled around its liabilities. See below for the usual Federal Reserve balance sheet charts and an outline of the funny business that went on over the past week.

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In an edit to last week’s update of the daily treasury statement charts, we noted that:

 

The US Treasury’s cash balance was $10.927 billion as of Wednesday, 19th August 2011. This is the lowest level since September 2008!

 

Over the week just passed, we’ve seen a minor increase to just under $13 billion. Here I present the usual charts of the US Treasury’s cash balance and of the cash balance lagged against US equity indices.

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Here we present this month’s update of the global real interest rate charts. Thanks to the idea of a participant on dasgelbeforum.de.org, we’ve decided to include local currency gold prices alongside the usual ‘real’ interest rate lines.

 

‘Real’ interest rates remain generally negative around the world. However, there are signs that this could be changing for the developing markets at least.

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It may seem a little suspect to use the words ‘another’ and ‘rare’ together as has been done in the title. After all, if one is using the adjective ‘another’, shouldn’t one be questioning the supposed rarity of the object to which it refers? Well, there is a point to this; so if the immediate trends in the Fed’s balance sheet continue, we will probably have to stop using such phrases. The reason why it’s ok for now is because there have only been four weeks in 2011 (including this one) in which the Fed’s balance sheet contracted. Here, I present several charts relating to the Fed’s balance sheet and consider the investment implications of the recent stagnation in the total balance sheet size. continue reading »

Right on schedule, the US Treasury received around $11 billion from the proceeds of Mortgage-backed Securities sales last Thursday. Moreover, the US Treasury released an update on the MBS portfolio wind down titled; ‘Taxpayers Recoveries Reach 70 Percent Milestone‘. The title left us thinking; hmmm… sort of… Here, I highlight the hidden confiscation involved with this particular piece of trickery and present the usual daily treasury statement charts.

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Monday was the 40th anniversary of the irredeemable fiat dollar. Unlike the preceding 39 anniversaries, this one was actually noticed! Here, I present several charts that show the changes to the Fed’s balance sheet since 1971. I conclude that the current gold price may be as ‘cheap’ as it was in 1971!

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