>>4423704 lb
Need to compile a few things to answer that question correctly.If anyone wants a great read on how the process that precipitated the forming and implementation of the FRB…this (pic) is the finest resource I have seen.
Mr. Griffin has been on this from the start. It's long but well-worth it.
back in a few.
The FRB has a system to guarantee that every single piece of crap it issues, by decree through the treasury, called: Primary Dealers.
https://www.newyorkfed.org/markets/primarydealers.html
ex
Primary Dealers
Primary dealers are trading counter-parties of the New York Fed in its implementation of monetary policy. They are also expected to make markets for the New York Fed on behalf of its official account holders as needed, and to bid on a pro-rata basis in all Treasury auctions at reasonably competitive prices.
The 'list' of Primary Dealers are:
Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse AG, New York Branch
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman Sachs & Co. LLC
HSBC Securities (USA) Inc.
Jefferies LLC
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA LLC
Morgan Stanley & Co. LLC
NatWest Markets Securities Inc.
Nomura Securities International, Inc.
RBC Capital Markets, LLC
Societe Generale, New York Branch
TD Securities (USA) LLC
UBS Securities LLC.
Wells Fargo Securities, LLC
To be on this list you are REQUIRED to make automatic 'purchases' of the crap issued through treasury. If you do not then you are no longer a primary dealer. Want to be in the club? Operate by the clubs rules.
Each treasury auction-hard to call it that any longer!-has built in, automatic buying pressure. It is set-up this way on purpose.
This is why there has never been a failed T-note auction..short/medium or long end of the note's issued.
There has been a few times it has come close but imo they would never admit to a failed auction as that would send the wrong signal.
These notes are 'purchased' and then held for a very short period of time. The primary dealers then are able to flip them back to the FRB in exchange for FIAT. They then throw that at anything they desire. The FRB parks these on it's balance sheet and holds them to maturity. See QE process that went from buying these at a clip of $50b a month (POTUS has referenced this number several times recently as well as the stress tests) to selling them. This process was gradually flipped from purchases to sales. It became firm sales, flow-wise, starting in March of this year.
The rub of all this is the FRB Stress Tests.
A Kabuki-style process where the FRB rates the health of all of the big banks to see how they would perform in a liquidity or termination type event.
All of these banks assets are supposedly forensically analyzed to see how they perform in any given scenario. In, fact they are just shuffled around to places that the FRB is not allowed to evaluate due to it's own classification of each set of assets.
The 'hold-to-maturity' bucket being the one where most of the crap debt/assets/derivs or anything else it, the bank, decides it is just going to HODL.
What this does is create a wink-wink type of situation where the FRB knows these banks have failed but does not want to alert people to this fact.
The Stress Tests were designed to allow these banks to shift these things into that hold-to-maturity bucket or area that is never looked at by the FRB.
Moar on that here
https://www.federalreserve.gov/supervisionreg/stress-tests-capital-planning.htm
It's a game of hot potato that is designed to make it appear there is an appetite for gov't issues debt.
They do not sell them off. They just allow them to expire and roll them off it's balance sheet.
The biggest myth going was they were ever going to sell them.
Who the hell was going to buy them?
See QE process that wound down the buys of almost $50b a month to a process of selling them.
here
https://www.investopedia.com/terms/q/quantitative-easing.asp
Had the same china air flights land and take off at Ontario, Ca airport on thursday night. Planefag caught it on the inbound and I lost rack of what happened to it while doing market posts. Later that night asked what happened and discussed with said planefag. While that was happening it was reported that it was taking off. It went up and headed N/NW and flew directly over SF.
Outbound china flight flew right over the alfalfa fields of Pomona!
Can't make this shit up!
Prices at decade low's…still time