I’m not really sure what ZH is trying to get at here. I mean, it’s common knowledge that the Fed has been buying treasuries. It’s called QE and they’ve been at it for a while now, and ZH has done a lot of griping about it.
This post is interesting, not for the point that they are trying to make, but for just the opposite. Look at the fact that foreigners are NOT dumping treasuries, but in fact have been net buyers. Also, I was under the impression that the fed was buying $75-$85B per month in treasuries, and this chart says they in fact bought $54B per month. So does that mean the other $21-$31B in purchases are MBS or something else? I just think there is a lot to learn from these charts and this time ZH really dropped the ball.
In 2013 The Fed Bought 150% More Treasurys Than All Foreigners Combined
Submitted by Tyler Durden on 02/19/2014 11:37 -0500
Now that we have the full history of foreign Treasury purchases in 2013, we know the following: 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! Suddenly the need for MyRA is becoming all too clear…
And as a bonus chart, here are the top holders of US paper as of December 31, 2013.
Thank you Fed (and Europe capital Belgium) for continuing to monetize US deficit spending.