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This Is Complete And Utter Hogwash!

January 31, 2014

Bernanke Leaves Fed with Record Balance Sheet of $4,102,138,000,000

Bernanke leaving $4,102,138,000,000 in the Federal Reserve is complete and utter hogwash! Clearly the books were cooked to reflect a greatly manipulated positive number. I was born at night but it wasn’t last night! Just another reason why these scumbags that have taken control of our government must be held accountable.

Divine Freedom

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(CNSNews.com) – Retiring Federal Reserve Chairman Ben Bernanke, who was replaced by  Janet Yellen as of today, is leaving the Federal Reserve with an  unprecedented $4,102,138,000,000 in total assets on its balance sheet,  up 391 percent from the $834,663,000,000 in total assets the Fed showed  on its balance sheet when Bernanke took over as chairman in February  2006. – See more at: http://www.cnsnews.com/news/article/ali-meyer/bernanke-leaves-fed-record-balance-sheet-4102138000000?

President Obama announced he was nomination Janet Yellen to replace Ben Bernanke as chairman of the Federal Reserve on Oct. 9, 2013 at the White House. (AP Photo/Pablo Martinez Monsivais)

Much of the increase in the Fed’s assets has come in the form of U.S.  Treasury securities and Freddie Mac and Fannie Mae mortgage-backed  securities that the Fed purchased over the last five years in its  attempts to stimulate the economy.

As of Feb. 1, 2006, when Bernanke took over as chairman, the Fed’s  balance sheet indicated it owned  $748,840,000,000 in U.S. Treasury  securities. At that time, the balance sheet listed no mortgage-backed  securities. As of Jan. 29, 2013, the balance sheet indicated the Fed  owned $2,243,176,000,000 in U.S. Treasury securities and  $1,532,224,000,000 in mortgage-backed securities.

Fed Balance Sheet

The Fed announced its first round of quantitative easing on March 18, 2009.  “The Fed judged that the economy, which remained in a recession at that  point, still needed this stimulus,” said a report—“Federal  Reserve:Unconventional Monetary Policy Options”—published by the  Congressional Research Service in 2013

“On March 18, 2009, the Fed announced a commitment to purchase $300  billion of Treasury securities, $200 billion of agency debt, and $1.25  trillion of agency mortgage-backed securities in 2009,” said CRS. “In  September 2009, the Fed announced that it would complete those purchases  by the first quarter of 2010. In November 2009, it announced that it  would purchase only $175 billion of agency debt due to the limited  availability of those securities.”

“Dissatisfied with the slow pace of the economic expansion, the Fed  announced on November 3, 2010, that it would further increase the size  of its balance sheet by purchasing an additional $600 billion of  Treasury securities at a pace of about $75 billion per month, a process  which was completed by the end of June 2011,” said CRS. “This  announcement was popularly referred to as QEII. During and after QEII,  the Fed announced it would continue the practice of replacing maturing  securities with Treasury security purchases.”

“On September 13, 2012, the Fed announced concern that ‘without  further policy accommodation, economic growth might not be strong enough  to generate sustained improvement in labor market conditions….. (and)  inflation over the medium term likely would run at or below its 2  percent objective,’” said CRS. “For those reasons, it announced that it  would restart large-scale asset purchases, pledging to purchase $40  billion of agency MBS per month (popularly referred to as ‘QEIII’).  Unlike the previous two rounds of asset purchases, the Fed specified no  planned end date to its purchases, instead pledging to continue  purchases until labor markets improved substantially, in a context of  price stability.”

“On December 12, 2012, the Fed announced that as a result of the  termination of the Maturity Extension Program, it would continue to buy  $45 billion of long-term Treasury securities per month, the same rate as  was purchased under the Maturity Extension Program,” said CRS. “Unlike  that program, the Fed would no longer finance the purchase of those  securities through the sale of short-term securities. Instead, purchases  would be financed by expanding the balance sheet, meaning that these  purchases can now be considered ‘quantitative easing.’ Combined with the  $40 billion of MBS purchases, these monthly purchases ($85 billion)  were modestly larger than QEII.”

In December 2013, the Fed announced that in January it would scale  back its net purchases of securities, buying $35 billion in  mortgage-backed securities instead of $40 billion and $40 billion in  Treasury securities instead of $45 billion. This week, the Fed announced  it was scaling back further and that in February it would purchase $30  billion mortgage-backed securities and $35 billion Treasury securities.

That combined $65 billion will be added to the Fed’s balance sheet in the first month of Chairman Yellen’s term.

– See more at: http://www.cnsnews.com/news/article/ali-meyer/bernanke-leaves-fed-record-balance-sheet-4102138000000?utm_medium=referral&utm_source=pulsenews#sthash.FglegZTg.dpuf

CREDIT TO:  Ali Meyer / CNS News

http://www.cnsnews.com/news/article/ali-meyer/bernanke-leaves-fed-record-balance-sheet-4102138000000?utm_medium=referral&utm_source=pulsenews

 

 

 

 

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