As documented in this week's Credit Bubble Bulletin
The federal government's domination of U.S. Credit runs unabated.
Federal debt expanded at a 10.3% rate during the quarter.
Keep in mind that federal debt expanded:
· 24.2% in 2008 ·
- 22.7% in 2009
· 20.2% in 2010
· 11.4% in 2011
· 10.9% in 2012
In nominal dollars, outstanding Treasury debt increased $337 billion during the quarter, with a one-year gain of $1.1 trillion.
Treasury debt increased a staggering $6.7 trillion, or 127%, during the past 19 quarters.
Total Non-financial Debt expanded $1.8 trillion.
Total Non-financial debt increased
· $1.9 trillion in 2012
· $1.3 trillion in 2011
· $1.5 trillion in 2010
· $1.1 trillion in 2009
· $1.9 trillion in 2008
· $2.6 trillion in 2007
Federal borrowings as a percentage of Total Non-financial Debt growth were:
· 61% in 2012
· 79% in 2011
· 107% in 2010
· 136% in 2009
· 64% in 2008.
Total Bank Assets expanded $186 billion during Q1 to $15.2 trillion
Reserves at the Fed surging $299 billion during the quarter to a record $1.8 trillion.
Government securities holdings jumped $38 billion, the strongest increase in a year.
Total Agency Securities (debt and MBS) jumped $47 billion during the quarter to $7.6 trillion, with a one-year gain of $58 billion. It will be a very tall order to ever privatize a largely nationalized household mortgage industry.
I also have no doubt that it is going to be very difficult to wean U.S. and global markets off of Federal Reserve QE liquidity.
Federal Reserve assets surged $289 billion, or 39% annualized, during the quarter to a record $3.2 trillion.
The Fed's balance sheet surpassed $1 trillion for the first time back in 2008.
Fed assets are now on track to reach $4.0 trillion near year-end.
And during this entire time, Bernanke has been able to goose stocks, but stocks have yet to even keep up with the expansion of money and credit, so the bull market is still young.
Wait until we break out to new highs.
[attachment=21019:nya0608.png]
Edited by PrintFaster, 08 June 2013 - 02:00 PM.
