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Registered Oct 09, 2009

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  • On Wed, 26 Jun 2013, 12:27am PDT in If the Fed Doesn't Buy Treasuries Who Will?, maxweber21 said:

    Plot thickens....


    getthefedout | Jun 8, 2012 03:37 PM ET

    The Household Sector is actually just a catch-all category. It represents the buyers left over who can’t be slotted into the other group headings. For most categories of financial assets and liabilities, the values for the Household Sector are calculated as residuals. That is, amounts held or owed by the other sectors are subtracted from known totals, and the remainders are assumed to be the amounts held or owed by the Household Sector. To quote directly from the Flow of Funds Guide, “For example, the amounts of Treasury securities held by all other sectors, obtained from asset data reported by the companies or institutions themselves, are subtracted from total Treasury securities outstanding, obtained from the Monthly Treasury Statement of Receipts and Outlays of the United States Government and the balance is assigned to the household sector.” (Emphasis ours) So to answer the question - who is the Household Sector? They are a PHANTOM. They don’t exist. They merely serve to balance the ledger in the Federal Reserve’s Flow of Funds report.


  • On Wed, 26 Jun 2013, 12:24am PDT in If the Fed Doesn't Buy Treasuries Who Will?, maxweber21 said:

    shadowstats shows YoY inflation at 5% using pre-1990 CPI formula. I think that includes housing and other large assets which don't even apply to many Americans.

  • On Wed, 26 Jun 2013, 12:22am PDT in If the Fed Doesn't Buy Treasuries Who Will?, maxweber21 said:

    Wow. I was wrong. FRB is out too. Looks like retail customers jumped in... gestaldt intelligence? Lemmings? Bad investment advisors?

    -- CNBC article "What is a "Household" and why are they buying treasuries?"

    "The reality, however, is slightly different.” The demand among average investors has swelled so much, in fact, that they bought more Treasurys in the first quarter than foreigners and the Fed combined. Households picked up about $170 billion in the low-yielding government debt during the quarter, while foreigners increased their holdings by $110 billion. The Fed, meanwhile, actually slightly decreased its net holdings"

    usinflationcalculator.com says dollar value loss was 2.1% 2011 to 2012. Treasury.gov says 1 yr tbill is at 0.14%. Don't even track inflation until 10 yr note. Worse yet, actual inflation for consumer goods ex-housing is surely over 10% and closed to 20% for the average working family.

    So, in conclusion, either retail customers are being duped or they are awash in cash and see no good investment options. Wow.

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