just cleared from tray
From: M
Sent: Sunday, January 27, 2013 1:38 AM
Subject: RE: Comments - Week of January 21
TRUE OR FALSE: QUIZ ON OWNERSHIP OF TREASURY SECURITIES
1. Marketable Treasury debt exceeds the size of the U.S. economy.
2. China owns more Treasurys than the Federal Reserve.
3. Over the past year, China’s ownership share of Treasurys has declined.
4. Since 1998, China’s ownership share of Treasurys has increased 10-fold.
5. China owns more Treasurys than Japan.
6. Excluding China and Japan, foreign investors own more Treasurys than any other group.
7. Foreign investors own more Treasurys than domestic investors.
8. Banks and other financial institutions own more Treasurys than the Fed.
9. As a percentage of Treasurys outstanding, the Fed owns more Treasurys today than it
did prior to the financial crisis.
10. Over the past ten years, households’ share of Treasury ownership has been little changed.
From: M
Sent: Sunday, January 27, 2013 1:41 AM
Subject: RE: Comments - Week of January 21
ANSWERS to previous email…..
1. False. Publicly held federal debt is 71% of GDP. Gross federal debt, however, tops 100%.
2. False. Despite presidential campaign rhetoric, the Fed currently owns significantly more Treasurys than does China, as shown on the charts.
3. True. It has fallen from a peak of 13.5% in Q2 2011 to 10.3% in Q3 2012.
4. False. Tricky question. It increased 11-fold from 1998 to 2011 but has declined to roughly 8-times at this time.
5. True. But only since 2008 and maybe not for much longer.
The latest TIC report shows a difference of $37 billion. But with China’s ownership flattening out and Japan’s likely to increase if the BoJ buys foreign bonds, the two will likely cross this year.
6. True. Although China and Japan own 20% of the Treasurys, all other foreign investors own 28%.
7. False. Another tricky question. According to the flow of funds data, foreign investors own 48% of Treasurys. But the TIC data shows foreign investors own slightly more than half. Take your pick.
8. True. Financial institutions own nearly 9 percentage points more than the Fed.
9. False. When Bernanke mentioned this at the December 12 press conference, we didn’t believe it either. Puts things in a different perspective and maybe explains why the Fed isn’t so worried about the size of its balance sheet and potentially disrupting the financial markets.
10. True. Households’ ownership share of Treasurys declined from over 20% in 1998 to more than 7% in 2002. It’s about a point higher today.
From: J
Sent: Sunday, January 27, 2013 6:19 AM
Subject: Re: Comments - Week of January 21
re TRUE OR FALSE: QUIZ ON OWNERSHIP OF TREASURY SECURITIES
for own purpose, i did scoring, red i got wrong and must pay attention unless otherwise deliberated, and green i got correct and w/i expectations
1. Marketable Treasury debt exceeds the size of the U.S. economy.
1. False. Publicly held federal debt is 71% of GDP. Gross federal debt, however, tops 100%. (J: am not troubled as I misunderstood the fine line)
2. China owns more Treasurys than the Federal Reserve.
2. False. Despite presidential campaign rhetoric, the Fed currently owns significantly more Treasurys than does China, as shown on the charts. (J: yeup, china is not stupid)
3. Over the past year, China’s ownership share of Treasurys has declined.
3. True. It has fallen from a peak of 13.5% in Q2 2011 to 10.3% in Q3 2012. (J: yeup, china is not stupid)
4. Since 1998, China’s ownership share of Treasurys has increased 10-fold.
4. False. Tricky question. It increased 11-fold from 1998 to 2011 but has declined to roughly 8-times at this time. (J: okay, but am not fussed w/ the detail)
5. China owns more Treasurys than Japan.
5. True. But only since 2008 and maybe not for much longer. The latest TIC report shows a difference of $37 billion. But with China’s ownership flattening out and Japan’s likely to increase if the BoJ buys foreign bonds, the two will likely cross this year. (J: I still think Japan owns more, but hey, no biggie)
6. Excluding China and Japan, foreign investors own more Treasurys than any other group.
6. True. Although China and Japan own 20% of the Treasurys, all other foreign investors own 28%. (J: whew, good, there is still time until the definitive crisis - the dollar crisis)
7. Foreign investors own more Treasurys than domestic investors.
7. False. Another tricky question. According to the flow of funds data, foreign investors own 48% of Treasurys. But the TIC data shows foreign investors own slightly more than half. Take your pick. (J: good, like the balance. means there is still time)
8. Banks and other financial institutions own more Treasurys than the Fed.
8. True. Financial institutions own nearly 9 percentage points more than the Fed. (J: yeup, but they are one and the same and same and one)
9. As a percentage of Treasurys outstanding, the Fed owns more Treasurys today than it did prior to the financial crisis.
9. False. When Bernanke mentioned this at the December 12 press conference, we didn’t believe it either. Puts things in a different perspective and maybe explains why the Fed isn’t so worried about the size of its balance sheet and potentially disrupting the financial markets. (J: think it depends on whether one treats the fed and the banks as one and the same, and from 10k kilometers away, they are one when genuine push becomes true shove)
10. Over the past ten years, households’ share of Treasury ownership has been little changed.
10. True. Households’ ownership share of Treasurys declined from over 20% in 1998 to more than 7% in 2002. It’s about a point higher today. (J: yeup, unless one treats the household, pension plans, insurance companies, banks, and the fed as one big ponzi game that is) |
