Total (non-financial and financial sector) System Credit increased to a record $57.563 TNSubmitted by Goldspan on Sun, 09/29/2013 - 18:23
Federal Reserve assets expanded SAAR $1.116 TN during Q2, with holdings of Treasury Securities growing SAAR $548.5bn and GSE-backed Securities expanding SAAR $548.7bn. In nominal dollars, Federal Reserve assets increased $283bn during the quarter to a record $3.526 TN. Fed assets were up a whopping $571bn in two quarters. In five years, Fed assets have inflated $2.574 TN, or 270%.
Rest of World (ROW) holdings of U.S. assets increased (nominal) $216bn during Q2 to a record $21.437 TN. Interestingly, Interbank Assets increased $267bn (to $588bn). Treasury holdings declined by $121bn to $5.601 TN. Uncharacteristically, “official” (central bank) Treasury holdings declined $81bn (to $4.009 TN) after having increased $368bn during the previous four quarters. ROW Agency Securities holdings dropped $65bn during the quarter to $876bn, with a two-quarter decline of $130bn.
Those of a bullish persuasion would argue these dynamics confirm the underlying strength and stability of the U.S. economy. I’ll counter with the view – one supported by Fed data - that massive federal deficits and Federal Reserve monetization have created unprecedented and deeply systemic financial and economic distortions.
it's really too bad no one on here knows Doug Noland.