We’re looking at you, Russia.
+
Somebody
just yanked $105 billion dollars worth of US government bonds out of
the Federal Reserve, according to the latest data from the US central
bank.
+
As
you can see, a withdrawal of that scale is pretty much unprecedented.
By way of background, the Fed does a lot of things. It sets monetary
policy. It regulates banks. And it also is a bank. In fact, the Fed acts
something like a trust bank for other foreign central banks, basically
taking care of the Treasury bonds and other investments that those
foreign central banks want to leave in the US. (That’s what “custody
holdings” are.)
+
But there are times when a country might not want to leave all its assets in the US. Like, say, it’s involved in a major geopolitical standoff and there’s plenty of chatter about freezing assets belonging to its wealthiest citizens. (Note that in the Fed’s custody holdings, though, we’re talking about Russian state assets, not private ones.)
+
Now
it’s important to note that just because these assets were pulled from
the Fed doesn’t mean that they were actually sold. If they had been,
we’d probably have noticed. Liquid though the US bond market is, if
someone dumped more than $100 billion of bonds on it, it would cause a
pretty good ripple, which likely would have pushed up government bond
yields sharply. Nothing like that has happened over the last week.
+
http://qz.com/188160/and-now-it-looks-like-russia-may-be-messing-with-the-fed/
KGB for a long time, Mr. Putin isn't going to allow the HillBilly Cultists rape Russia ever again.
ReplyDeleteThe energy which Putin has kept in a spiral of growing chi, since the 1990s and Clinton HillBilly Cultists' raping Russia then, too. Well the invite to be civilized reaches critical mass, soon-later, right now?
ReplyDelete