Dr. Paul Craig Roberts/Dave Kranzler: The Fed’s Covert QE

The Great Deceiver — The Federal Reserve                                                                                                       Paul Craig Roberts and Dave Kranzler

Is the Fed “tapering”? Did the Fed really cut its bond purchases during the three month period November 2013 through January 2014? Apparently not if foreign holders of Treasuries are unloading them.

From November 2013 through January 2014 Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Somehow Belgium came up with enough money to allocate during a 3-month period 29 percent of its annual GDP to the purchase of US Treasury bonds.

You can read the rest of the article here:  The Fed Is The Great Deceiver

9 thoughts on “Dr. Paul Craig Roberts/Dave Kranzler: The Fed’s Covert QE

  1. Dave, great article. When I saw it reported that Belgium was buying our debt, surmised that it was just more of the back door bs. Now confirmed by the good guys!

    I tell all my friends that the dow is going to 20,000 and that they should stay in the market. I agree with their talk about the effects of tapering and encourage them to buy more stock with their excess funds. Seadrill limited was an old one I remembered and he bought 300 shares but still has six figures times three to invest.

    Hey, it’s easier to do than argue and it lends credence to their belief system. Also it avoids unpleasantness and lets relationships continue. But the look of worry and uneasiness persist in their demeanor.

    Oh well, I tried the truth but exhaustion has overcome in spite of friendship. So I’ll continue to pretend ….

    1. You can discuss the truth with anyone who is even slightly blinded by hope and hype. I was actually disussing this the other night at dinner with a pretty high profile commentator. It’s like anything else, people need to do the work and figure it out for themselves or they will always exist in denial

  2. Dave, why does the Treasury have to report Belgium’s holding honestly. The Treasury could report any number it wanted, for example, ZERO.

  3. Any reply forthcoming to Mr. Denninger’s, less-than-complimentary, rebuttal to this article? My take is that he didn’t read the article closely enough, which shows how the Fed got around showing this transaction on their balance sheet, at this time. Not that it stops him, like Armstrong, from shooting his mouth off because, after all, they’re the smartest guys on the block.

    1. But I will say a colleague sent a summary of his “critique.” You are right, he didnt’ read the article closely. Second, the Fed did a huge $/euro currency swap facility with the ECB a couple years ago and I’m sure the funds to fund Belgiums’s Fed custodial acct came from that facility. Because of this, the transaction would not show up on the Fed’s balance sheet.

      The only reason we can connect dotted lines is because the trade was laundered thru the Euroclear system based in…Brussels, where the…EU is headquartered.

      China would not have been the buyer because China is reducing its exposure to Treasuries. Sometimes outright and sometimes via a long to short duration swap.

      Anyway, that’s time in life spent rebutting a clinically mildly insane person that I can never get back…

    2. One more point, several prestigious websites, including the online Journal of Foreign Policy, featured our article. I believe that carries the stamp of crediblity with a lot more gravitas than does criticism from a whining malcontent like Denninger

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