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Joined: 02/22/2016 Posts: 4561
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Treasury has built up its cash balance to 469.7 billion dollars

Normally, the target is around 300 billion dollars.

The Fed monetizes debt. The CUSIPs of the debt issues in the Fed auctions to purchase debt match those of the issues auctioned by the Treasury days earlier. It's in the announcements and can't be more explicit than announcing they will purchase securities that have to yet to be auctioned.

The regulations require the Fed to buy from the broker-dealers after the auctions. They receive a fee. Regulations don't allow them to "monetize" debt. The banks just act as pass-through entitities in this case. There is no difference from direct monetization other than the guaranteed profits to the large banks for their role.

[Post edited by lchoro at 02/27/2020 1:08PM]

(In response to this post by GreenvilleVT)

Posted: 02/27/2020 at 1:04PM

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Current Thread:

DIS and other companies are going to be a great buy if you happen -- HokieSignGuy 02/27/2020 10:01AM

There is a liquidity problem since Treasury has issued $177 B debt in Feb -- lchoro 02/27/2020 10:34AM

Meanwhile, the run to safety in us bonds is well underway ** -- ColoVT82 02/27/2020 2:33PM

The Fed is building up cash to cover operating expenses? -- GreenvilleVT 02/27/2020 11:25AM

Treasury has built up its cash balance to 469.7 billion dollars -- lchoro 02/27/2020 1:04PM

I have been in the bond world for over 25 years and never heard such a -- GreenvilleVT 02/27/2020 4:55PM

NY Fed posts the announcements of the issues they want tendered -- lchoro 02/27/2020 6:51PM

That is amazing. Short everything. ** -- GreenvilleVT 02/27/2020 9:12PM

The fed activity last fall was also not QE. ** -- GreenvilleVT 02/27/2020 11:28AM

Jeeze, I haven't heard the term QE in a while... and it is STILL -- HokieSignGuy 02/27/2020 10:42AM

There are different ways to monetize debt -- lchoro 02/27/2020 10:53AM

Bull and Bear are often "Self Fulfilling Prophecies" in my opinion, not -- Late 80s Hokie 02/27/2020 10:28AM

Computer driven trading accounts for much of the volatility ** -- BayHokie 02/27/2020 4:17PM

You are kinda missing the point -- MrBayAreaHokie 02/27/2020 10:49AM

The death rate is not near 5% and everyone is assuming that every human in -- fordham 02/27/2020 11:49AM

Current US death rate from Corona is 0.0% -- EDGEMAN 02/27/2020 1:23PM

Counter point. I think China is more advanced in coordination -- HokieAl 02/27/2020 12:07PM

Interesting use of words... more advanced in coordination.... -- HokieSignGuy 02/27/2020 1:12PM

The killing part of this virus is it getting into the lungs, so the massive -- fordham 02/27/2020 12:21PM

Very true. Amazing how many factors are involved in all of this. ** -- HokieAl 02/27/2020 12:30PM

Who is predicting 5% of the people in the US die? ** -- BB Hokie 02/27/2020 11:23AM

Congrats on missing the point again ** -- MrBayAreaHokie 02/27/2020 11:28AM

Well, 1 or 2 sentence responses telling us that we're missing the point -- Late 80s Hokie 02/27/2020 12:24PM

I will try to explain this -- MrBayAreaHokie 02/27/2020 1:35PM

I understand that but thousands of americans die every day from any number -- fordham 02/27/2020 3:01PM

Thanks. ** -- Late 80s Hokie 02/27/2020 1:37PM

Go ahead and enlighten us then. You introduced the 5% number. -- BB Hokie 02/27/2020 11:47AM

How much can I bet on the under of your 5%? ** -- GreenvilleVT 02/27/2020 11:18AM

I’d like in on that action, too. Also, see my post below. ** -- CPRVHokie 02/27/2020 11:24AM

Are we going off of 2010 census data? I wonder if the IRS has the best data -- HokieAl 02/27/2020 11:39AM

I’d give it to you if it killed .5% of 350 million -- CPRVHokie 02/27/2020 11:50AM

We won’t see 1,750. ** -- CPRVHokie 02/27/2020 11:52AM

You did see the CEO change at Disney right? -- HokieAl 02/27/2020 10:09AM

Not to mention how many movies are in their q? I hear Mulan was $200MM flop -- Vtskier1 02/27/2020 10:15AM

I think that mulan flop was already built into their recent slow slide ** -- HokieSignGuy 02/27/2020 10:35AM

I don't like this term flop -- HokieForever 02/27/2020 10:41AM

To me, 'flop' means it didn't meet expectations -- Baltimore Hokie 02/27/2020 10:48AM

Right -- HokieForever 02/27/2020 10:51AM

Haha true.... it might be a roaring success. ** -- HokieSignGuy 02/27/2020 10:43AM

Didn't realize Mulan was that expensive -- Baltimore Hokie 02/27/2020 10:32AM

True but it starred a Chinese actress -- HokieForever 02/27/2020 10:34AM

Not sure how Mulan can be a flop yet. -- HokieForever 02/27/2020 10:28AM

On the flip side, who will be a "winner" when gov't injects $2.5B to $8.5B? ** -- Vtskier1 02/27/2020 10:30AM

Joe Bidens sons? lol -- HokieSignGuy 02/27/2020 10:40AM

Government contractors -- HokieAl 02/27/2020 10:38AM

Pharmaceutical/Medical Supply Companies -- HokieForever 02/27/2020 10:31AM

And change of leadership at the top ** -- 133743Hokie 02/27/2020 10:08AM

Probably only good advice for someone who's already holding on to... -- EDGEMAN 02/27/2020 10:04AM

Treasury has built up its cash balance to 469.7 billion dollars

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