Friday, May 24, 2013
Lots of coverage is still ongoing on our local news channel of Monday’s monster tornado. We are all thankful to learn that the death toll was lowered to 24, which is absolutely incredible in itself when you see the damage that occurred. Very grateful and very thankful so many did survive.
I was stunned to learn this morning from John McTernan’s website that a gay pride event had just taken place here in OKC. So if you are wondering why I didn’t mention the gay pride event in yesterday’s post, it’s because neither Daniel nor I knew anything about it. Because we both watch for news about Israel, we both watch our local news -- he watches Channel 4, and I watch Channel 9. Neither of us saw anything on the two news channels we watch concerning the 3-day gay pride event.
I am sure the cost of this massive tornado, especially in terms of human lives, will be far greater than any economic “benefit” that came from hosting this gay pride event.
Also saw that Steve Coerper linked to P. P. Simmons’ comments on the event on his Homework Page.
In the meantime, we are starting to see in the news that the number of sexual assault crimes in the military are rising. Apparently 85,000 sexual assaults took place in the military in 2012.
Stop and think about that for a moment. That number is larger than the populations of many towns across this nation. Think about your local community. What would you think if you learned that 85,000 SEXUAL assaults alone, not 85,000 incidents of some kind of crime, but 85,000 SEXUAL ASSAULTS took place where you live. That number is stunning. Now, spread that number out to your state. Having 85,000 sexual assaults in your state would still be way too many. Would you feel safe? Now understand that that is the number of SEXUAL ASSAULTS that took place in our military in 2012.
Of that 85,000, 40% of those assaults occurred to MEN. That is approximately 40,000 men were SEXUALLY ASSAULTED IN THE MILITARY JUST LAST YEAR, IN 2012.
The only enemies that our men and women in uniform should have to face are the “guys” on the other side -- NOT another armed services member.
Rape is demoralizing and traumatic, and it is heartbreaking to know that there are good men and women who enter the military to support their families and to give service to their country who, instead of finding a good life, find themselves preyed upon by other service members who are emboldened by Obama's lifting of DADT. It is a travesty, and unfortunately, one that will not be corrected because this president doesn't just support them, he adores them. 85,000 sexual assaults in the military, including incredible numbers of male-on-male assaults, appears to be an acceptable price Obama is willing to pay for his agenda.
President Barack Obama reassured homosexual advocates gathered at the White House yesterday that he was not dragging his heels on implementing their agenda,but merely patiently biding his time in order to ensure success in the long run. . . .
". . . I suspect that by the time this administration is over, I think you guys will have pretty good feelings about the Obama administration. . . . I want you to know that in this task I will not only be your friend, I will continue to be an ally and a champion and a President who fights with you and for you."(emphasis mine)
--Obama Assures Homosexualist Leaders He’s a “Champion” of Their Cause at Private White House Reception, June 29, 2009
How many will be sexually assaulted in 2013?
David Wilkerson wrote in The Vision (1974):
The sin of Sodom will again be repeated in our generation. Of all the sins Sodom was guilty of, the most grievous of all were the homosexual attacks by angry Sodomite mobs attempting to molest innocent people. . .
The Bible says: “As it was in the days of Lot, so shall it also be in the days of the coming of the Son of Man.” I have seen things in my vision which make me fear for the future of our children. I speak of wild, roving mobs of homosexual men publicly assaulting innocent people in parks, on the streets, and in secret places (gg note: our military?). These attacks by Sodomite mobs are certain to come, and, although they may not be publicised as such, those in the law-enforcement circles will know the full extent of what is happening. (pg. 50, emphasis mine.)
". . . those in the law-enforcement circles will know the full extent of what is happening." I am sure law-enforcement would include military police.
As this president enacts policies that force Christian service members and chaplains to shut their mouths, these assaults will only grow in number. And that’s not prophesying -- that’s just predicting.
MILITARY SUFFERS WAVES OF "GAY" SEX ASSAULTS
But it shall not be well with the wicked, neither shall he prolong his days, which are as a shadow; because he feareth not before God. --Ecclesiastes 8:13
Running from Babylon
Overnight the shares of Bankia plunged 51.4%. This, by any definition, is a rout. The citizens of Spain had bought preferred shares, hybrid bonds on the basis of an "implied guarantee" from the sovereign. No such luck. It had been a tout sold by the bank and guaranteed by no one. Now the owners are suffering the disastrous consequences.
Many European analysts had suggested that the swap out of these instruments into equity would drop the price of the stock to about 1.35 Euros but reality emerged today as the equity price plunged to 0.68 Euros. The shares traded today were forty-two times the normal average trading volume and indicated the size of the problem. The stock has lost 90% of its value since May 6.
In the meantime the central bank of Spain has said that the Spanish banks might have to reserve 5-10 billion Euros in more provisioning. This number is a joke and one more IMF/EU/ECB projection with all of the merits of two sparrows lifting a 747 for take-off. The number is more like 50 billion Euros and possibly twice that much the way things are going in Spain.
Spain has already gone bankrupt. It is not spoken of in this fashion, no one mentions it in public but that is the truth of it. The money, some $172 billion, was funneled to the banks and not to the sovereign in one more European ruse to distract everyone but the results are the same. Now it is becoming apparent that even this amount of money was not enough so more will have to be given. The money will go to the Spanish banks, the debt will be guaranteed by Spain, the contingent liability will not be counted as part of Spain's debt to GDP ratio but we will know the truth of it. Whatever direct money from Spain that goes into their banks will be called an "investment" and put on the left side of their balance sheet as an asset and the mockery will continue but I can still read a ledger; thank you very much.
This path then leads to our own Federal Reserve Bank. They have lent more than one trillion dollars now to foreign banks. Now many people nod and go to sleep as this number floats past. "Not so fast," I say, "Not so fast."
The Fed is lending about $700 billion to American banks and $1.03 trillion to foreign banks. Two issues are raised here in my opinion. Why is America lending all of this money to foreign institutions and I would hope that Congress will begin an inquiry into this question. The second issue is that since we are engaged in this lending why is it? One assumes that it is not for nothing and so it raises the question of the health of the European banks that must be so serious that the Fed is forced to come to their rescue. I repeat, the financial health of the European banks must be so impaired that the Fed has been forced to lend them ever increasing amounts of money.
Our world is like a Dali painting; distorted, out of balance and disjointed. The central banks pump in the money, the governments distort the data and lie, the markets head every higher and Puff the Magic Dragon flies on unencumbered.
In fact, according to the most recent data, the Fed now owns 30.32% of all ten year equivalent government debt. At the current trajectory the Fed will own all of the government's debt by 2018. The value of the Dollar may be three Nigerian bananas by then but not to worry because the Euro will only fetch two bananas and the Yen only one. It is indeed hard to see where we are going here. Deception and monetary creation have gotten us where we are but how long until someone actually climbs up Mt. Olympus and discovers that there are no gods is anyone's guess.
“There are decades where nothing happens; and there are weeks where decades happen.”
-Vladimir Ilyich Lenin
A 7.4-magnitude earthquake struck 255 kilometres (158 miles) southwest of Tonga today, according to the US Geological Survey, but there were no reports of damage.
The quake hit at 5.19 am local time (2249 IST yesterday),
and was centred 282 kilometres southwest of Tonga's capital
Nuku'alofa and 171 kilometres deep.
It was followed four hours later by a second powerful 6.6 tremor 84 kilometres northwest of the town and 103 kilometres deep.
"A destructive tsunami was not generated based on earthquake and historical tsunami data," the Pacific Tsunami Warning Center said of each quake.
The Matangi Tonga website said the quakes "shook homes and rattled windows" in Nuku'alofa but reported no damage.
The powerful tremors also caused false alarms in New Zealand where the official GNS Science monitoring system reported tremors of 6.1 and 5.9 magnitude off the east coast of the North Island.
A GNS spokesman said the New Zealand measuring devices had picked up the quakes from outside their network and tried to locate them and automatically sent out alerts, which were later deleted.
The two quakes off Tonga came 12 days after a similar 6.5-magnitude earthquake struck near the pacific nation at a depth of 205 kilometres.
Tonga, almost 2,000 kilometres (1,240 miles) northeast of New Zealand, lies on the so-called "Ring of Fire", where continental plates collide causing frequent seismic activity.-
See more at: http://www.indianexpress.com/news/7.4magnitude-earthquake-strikes-off-tonga/1120040/#sthash.sZ9rlnKD.dpuf
|On a business trip to Washington DC, not long ago I met with two members of the Scottish Rite Freemasonry (whose names I cannot reveal), who have unrestricted access to the most secret and highest guarded documents of the Order. I joined one of them at The House of the Temple, the headquarters of the Scottish Rite, Southern Jurisdiction, where the Supreme Council, 33rd Degree, have their meetings, and the other at the George Washington Masonic Memorial in Alexandria, Virginia.|
While both men were very helpful and informative, they were evasive whenever I probed too deeply into certain areas. I suppose this is not surprising, given that Masons are sworn to secrecy under blood oaths of horrific repercussion, including having their throats slit, eyeballs pierced, tongues torn out, feet flayed, bodies hacked into pieces, and so on if they give up the wrong information. Perhaps this is why at one point, one of the men I conferred with became visibly nervous as soon as I started asking specific questions about Masonic religious practices, which would include secret rituals that are performed in the Temple Room on the third floor at the House of the Temple, and the hidden meaning behind the name of their deity—the Great Architect of the Universe.
What most in the public do not understand is that, in spite of denial by some Masons, theirs is a religious institution with rituals and even prophetic beliefs concerning a human-transforming final world order, founded on and maintained by dozens of doctrines that can be defined by what “Masonry’s greatest philosopher,” Manly P. Hall, in The Lost Keys of Freemasonry,[i] called “the principles of mysticism and the occult rites.” The reason lower-degree Masons would deny this is because the Masters of the Craft intentionally mislead them. Speaking of the first three degrees of Freemasonry, Albert Pike admitted in Morals & Dogma:
The Blue Degrees are but the outer court or portico of the Temple. Part of the symbols are displayed there to the initiate, but he is intentionally misled by false interpretations. It is not intended that he shall understand them; but it is intended that he shall imagine he understands them. Their true explication is reserved for the Adepts, the Princes of Masonry.… It is well enough for the mass of those called Masons to imagine that all is contained in the Blue Degrees; and whoso attempts to undeceive them will labor in vain, and without any true reward violate his obligations as an Adept.[ii]
At these lower degrees, most members of Freemasonry belong to what is maintained as a fraternal organization that simply requires belief in a “Supreme Being” while avoiding discussion of politics and religion in the lodge, using metaphors of stonemasons building Solomon’s temple to convey what they publicly describe as “a system of morality veiled in allegory and illustrated by symbols.” I’ve known several of these type Masons, all of whom were sincere members of society who worked together in a brotherhood for common benefit and to pool resources for charitable goals. None of these lower-degree Masons with whom I have been acquainted would ever, insofar as I know, participate in a conspiracy toward a global world order in which people will be politically and spiritually enslaved. But as one former Freemason friend told me, “This is the veneer of the lower degrees that exists on the Order’s public face. What is happening with at least some of the members at the 33rd level, or among the York Rite Knights Templar and the Shriners, is another matter altogether. When I was part of the brotherhood,” he continued, “I watched as specific members with the correct disposition and ideology were identified, separated, groomed, and initiated into the higher degrees for reasons you would find corresponding with the goals of a New World Order.”
Famous Freemason Foster Bailey once described how the Masons not included among this elite are unaware of an “Illuminati” presence among Master Masons, who in turn are the guardians of a secret “Plan”:
Little as it may be realised by the unthinking Mason who is interested only in the outer aspects of the Craft work, the whole fabric of Masonry may be regarded as an externalisation of that inner spiritual group whose members, down the ages, have been the Custodians of the Plan.… These Master Masons, to whom TGAOTU [The Great Architect of the Universe] has given the design and Who are familiar with the tracing board of the G.M. [Grand Master] on high, are…sometimes known as the Illuminatiand can direct the searchlight of truth wherever its beams are needed to guide the pilgrim on his way. They are the Rishis of the oriental philosophy, the Builders of the occult tradition.”[iii]
Part of the carefully guarded Illuminati “Plan” Bailey referred to involves the need for each Mason to navigate the meaning behind the various rituals in order to discover the secret doctrine of Masonry involving the true identity of deity and what this means now and for the future (which, as readers will learn later, is reflected in the prophecy of the Great Seal of the United States). Manly Hall, who rightly called the Great Seal “the signature” of that exalted body of Masons who designed America for a “peculiar and particular purpose,” described these two kinds of Masons as members of a “fraternity within a fraternity,” the elect of which are dedicated to a mysterious arcanum arcandrum (a “sacred secret”) unknown to the rest of the Order:
Freemasonry is a fraternity within a fraternity—an outer organization concealing an inner brotherhood of the elect.
…it is necessary to establish the existence of these two separate yet independent orders, the one visible and the other invisible.
The visible society is a splendid camaraderie of “free and accepted” men enjoined to devote themselves to ethical, educational, fraternal, patriotic, and humanitarian concerns.
The invisible society is a secret and most august fraternity whose members are dedicated to the service of a mysterious arcanum arcandrum.
Those brethren who have essayed to write the history of their craft have not included in their disquisitions the story of that truly secret inner society which is to the body Freemasonic what the heart is to the body human.
In each generation only a few are accepted into the inner sanctuary of the work…the great initiate-philosophers of Freemasonry are…masters of that secret doctrine which forms the invisible foundation of every great theological and rational institution.[iv]
Among dedicatories to those who support this “invisible” secret doctrine, there is a memorial alcove in the heart of the House of the Temple called the “Pillars of Charity.” Here, between two vaults on either side—one containing the exhumed remains of former Sovereign Grand Commander Albert Pike and the other containing Sovereign Grand Commander John Henry Cowles, marked by busts of each man on marble pedestals—a stained-glass window depicts the all-seeing eye above the words “Fiat Lux” emitting thirty-three beams of light downward onto the phrase “ordo ab chao” from ancient craft Masonic doctrine, “order out of chaos.”
In between meetings with the anonymous Masons who met with me during research for my upcoming book, I stepped into this shrine and read the names of those who are hallowed there on reflective golden inscriptions for contributing at least one million dollars to advance the cause of Scottish Rite Freemasonry, including the George Bush family, whose work to initiate the New World Order is universally understood.
At the House of the Temple, like elsewhere, “The Brotherhood of Darkness” (as my friend Dr. Stanley Monteith calls it) intentionally hides in plain sight the occult aspirations of universalism, which ultimately will be conceived in a one-world order and one-world religion under the son of Lucifer—Apollo/Osiris/Nimrod—or, as Manly Hall put it:
The outcome of the “secret destiny” is a World Order ruled by a King with supernatural powers. This King was descended of a divine race; that is, he belonged to the Order of the Illumined for those who come to a state of wisdom then belong to a family of heroes-perfected human beings.[v]
When Hall offered this astonishingly perceptive commentary about the future Masonic “King” who is “descended of a divine race” of “Illumined” (luciferic) “heroes-perfected” (half-man, half-god) human beings, he nailed exactly what the Watchers had done, and what the Cumaean Sibyl’s prophecy on the Great Seal of the United States says will occur concerning the coming of Apollo/Osiris/Nimrod.
Have the keepers of the secret destiny of America also hidden in public view the timing of their king’s arrival? We believe they did, and that the entire prophecy—who, what, when, and where—is openly encoded within two Masonic artifacts: the national cipher known as the Great Seal of the United States, and the “key” we shall for the moment call the Lost Symbol. The means to understanding when the novus ordo seclorum shall enthrone its Apollonian leader may have also been known by Hall, as he correctly noted that the “unfinished pyramid” upon the seal’s reverse side is the “trestleboard setting forth symbolically the task to the accomplishment of which the United States Government was dedicated from the day of its inception.”[vi]
Previously we summarized Hall’s comments about the “mass of occult and Masonic symbols” on the Great Seal, which he believed only students of archaic or esoteric symbolism would be able to accurately decipher. This included the obverse side of the Great Seal, where a bald eagle, which he illustrated was a shrewd mythical phoenix so important to Masonic mysticism, clutches a bundle of arrows in its left talon, while its right claw grips an olive branch. “But,” Hall then went on to say:
If this design on the obverse side of the seal is stamped with the signature of the Order of the Quest, the design on the reverse is even more definitely related to the old Mysteries.… Here is represented the great pyramid of Gizah, composed of thirteen rows of masonry, showing seventy-two stones. The pyramid is without a cap stone, and above its upper platform floats a triangle containing the all-seeing eye surrounded by rays of light.… The combination of the phoenix, the pyramid, and the all-seeing eye is more than chance or coincidence.… There is only one possible origin for these symbols, and that is the secret societies which came to this country 150 years before the Revolutionary War.… There can be no question that the great seal was directly inspired by these orders of the human Quest, and that it set forth the purpose for this nation as that purpose was seen and known to the Founding Fathers.[vii]
As Manly Hall did, thirty-third vice president of the United States and 32nd-Degree Mason Henry Wallace also viewed the unfinished pyramid with the all-seeing eye hovering above it on the Great Seal as central to the prophecy of a New World Order. Whenever the United States assumed its position as the capital of the world, he believed, the Grand Architect would return and metaphorically the all-seeing eye would be fitted atop the pyramid as the finished “apex stone.”
But Whose All-Seeing Eye Is This, Anyway?
While different versions of the eye of providence or all-seeing eye have appeared throughout time within various cultures, the origin of each can usually be understood within the context of its adjoined symbolism. In the case of the all-seeing eye on the Great Seal of the United States, the connection to the uncapped Egyptian pyramid and to the Osiris-Apollo-related mottoes positively determines the culture to which this specific “eye” refers, and the solar deity represented by it: Osiris/Horus/Apollo/Nimrod.
This is further illustrated by the “numerological values” of the arcane mottoes, which were carefully chosen for the Great Seal due to their connection to the pagan deity. So important was it that the Masonic numbers three (3) and thirteen (13) be reinforced with the multi-named “god” (the numbers three and thirteen are historically connected with the deities Apollo, Osiris, and Nimrod, and this is why, for instance, the American space mission Apollo 13 was named after the deity and had this number), that not only was the original amount of American states intentionally set at thirteen, but Freemason David Ovason, whom Robert Hieronimus (considered one of the the world’s foremost authorities on the Great Seal) calls “exceptionally well referenced,” confirms how a letter was “cut” from the Latin word saeclorum (the usual spelling) in order to create the word seclorum to contribute to three sets of thirteen on the reverse side of the Great Seal.
After acknowledging that the top motto, annuit coeptis, had the obligatory thirteen letters, Ovason pointed out howsaeclorum was letter-cut to join the bottom motto, novus ordo seclorum, so that the phrase would end up being seventeen letters, which when added to the nine numerals in the Roman date would equal a total of twenty-six, or two sets of the number thirteen. Combined with the top motto, these three sets of thirteen were very important to establish, Ovason says, in order to reflect the trinity represented in the Great Seal “Eye of Providence, and in the nominal triangle from which the pyramid is constructed.”[viii]
Based purely on the Great Seal’s symbolism, the trinity these three sets of the number thirteen denote is authoritatively identified as Osiris, Horus, and Isis, the pagan versions of Father, Son, and Holy Spirit, respectively. The use of the number thirteen in this way also connects the Great Seal to the mythological and astrological significance of the legend of Osiris as the dying and rising god. It was evidently so important to maintain this talisman-like value, thirteen, that other phases of the design and layout of Washington DC were coordinated accordingly, says Ovason. This includes the laying of the White House cornerstone on October 13, 1792, by Masons, and the Fourth of July signing of the Declaration of Independence thirteen days after summer solstice, so that the sun would be on Sirius. In Egyptian mythology, the sun represented Osiris while the star Sirius symbolized Isis, and thirteen was the number of pieces of Osiris that Isis was able to find after Seth, his evil brother, murdered and threw fourteen pieces of him into the Nile. Isis searched the riverbank until she recovered every piece, except for his genitals, which had been swallowed by a fish. Isis replaced the missing organ with an Obelisk and magically impregnated herself with Horus. Therefore, in Masonic as well as in ancient Egyptian mythology, the number thirteen—used a total of thirteen times on the Great Seal, counting front and back—is the number that represents the return or resurrection of Osiris.
This mythology was so meaningful to the founding of the United States and the construction of its capital—including having the missing Osiris genitalia represented by the 6,666-inches-high Egyptian Obelisk known as the Washington Monument—that nearly all of David Ovason’s five hundred-plus-page Secret Architecture of Our Nation’s Capital is dedicated to establishing the singular correlation between Washington DC and Virgo, the constellation of Isis, or what Ovason calls, “Isis, who was the chief of the feminine mystery deities and the prototype of the steller Virgo.”[ix]
This affiliation existed from the very day Freemasons gathered on April 15, 1791, beginning appropriately at 3:30 PM (reflecting the mystical value, thirty-three) because of the astrological position of Jupiter and Virgo, and what this would mean for the secret destiny of America:
At exactly 3:30 PM, Jupiter…began to rise over the horizon. It was in 23 degrees of Virgo.… By this means, the zodiacal power of Virgo, which was called in later Masonic circles “the Beautiful Virgin,” was able to stamp her benign influence on the building of the federal city.… A few of the many Freemasons present at this ceremony would have been only to well aware of the profound implications of what they were doing.… It is quite clear that the ceremonial placing of the stone related to more than merely the founding of the federal district: it was somehow linked to the future destiny of America itself.[x]
By dedicating the United States through its astrological alignment to the “Virgin” constellation of Isis, the founders had dedicated the “destiny” of America to fulfilling the secret doctrine of Freemasonry, as also reflected in the Osiris/Apollo symbolism of the Great Seal, concerning subservience—now and upon his return as Antichrist—to Osiris/Apollo/Nimrod.
Interestingly, the same dedication to Osiris/Isis/Apollo exists in New York where the events of September 11, 2001, initiated the push toward the novus ordo seclorum. The Statue of Liberty in New York’s Harbor, which holds the Masonic “Torch of Enlightenment,” was presented in 1884 as a gift to American Masons by the French Grand Orient Temple Masons.
Designed by French Freemason and sculptor Frédéric Auguste Bartholdi and built by another French Freemason, Gustave Eiffel, the statue was originally identified as “the goddess Isis” with the statue’s head formed to represent “the Greek Sun-god Apollo…as preserved on an ancient marble tablet (today in the Archaeological Museum of Corinth, Corinth, Greece)—Apollo was represented as a solar deity, dressed in a similar robe and having on its head a ‘radiate crown’ with the seven spiked rays of the Helios-Apollo’s sun rays.”[xi]
The legend of Osiris and Isis, the connection with Apollo, the magical number thirteen, and the history surrounding their mythos is often openly discussed in Masonic and brotherhood-friendly literature. For instance inMorals and Dogma, Albert Pike enumerated the esoteric significance of the Osiris epic at length, adding that lower-level Masons (Blue Masonry) are ignorant of its true meaning, which is only known to those who are “initiated into the Mysteries.”[xii] Pike also spoke of the star Sirius—connected to Isis and at length to Lucifer/Satan—as “still glittering” in the Masonic lodges as “the Blazing Star.” Elsewhere in Morals and Dogma, Pike reiterated that the “All-Seeing Eye…was the emblem of Osiris”[xiii] and that the “Sun was termed by the Greeks the Eye of Jupiter, and the Eye of the World; and his is the All-Seeing Eye in our Lodges.”[xiv]
Once people understand this illuminated Masonic connection to the “trinity” on America’s Great Seal, and what the prophetic symbolism, mottoes, and numerology imply, it becomes apparent why so much effort was put forward for so long by those who felt it was necessary to hide this extraordinary destiny. Ovason acknowledges this conspiracy of silence as well:
The motto at the top of the seal, Annuit Coeptis, is from Virgil…from the Aeneid.… This is a prayer to the god Jupiter.… We should observe that while the subject matter of the reverse of the seal is undoubtedly pagan—if symbolic of hermetic Egypt—the superior motto is itself a prayer to a pagan god. Could this be the reason why there has been so much reluctance to bring the reverse of the seal into the light of day? Whatever the nature of the god, the prayer directed in this way is a petition that the daring undertaking [the secret destiny of America as symbolized in “finishing” the pyramid] may be completed, and that the new age will find fulfillment.[xv]
Ovason, a Mason whose research earned praise from Fred Kleinknecht, Sovereign Grand Commander of the 33rd-Degree Supreme Council of Freemasons in Washington DC, is to be thanked for inadvertently revealing what the Illuminatus has secretly known for ages—that the Great Seal of the United States is a pagan prophecy and petition to a pagan god (the same entity the Bible identifies by name as the end-times Antichrist) to assist in the conclusion of the great work by his return. “When we have grasped the importance of these New Age expectations,” Ovason concludes, “we shall be in a better position to understand why the design for this reverse [side of the Great Seal] has remained so consistently hidden.”[xvi]Raidersnewsupdate.com
As is well-known by everyone, the Fed monetizes the US deficit on a daily basis, thanks to the 45 minutes of POMO love each day when it buys Treasuries from Dealers. Of course, the Fed monetizes bonds from across the entire curve (mostly the longer end), which is why it is somewhat complicated to express the amount of risk transfer the Fed takes on every time the S&P posts an uptick as a result of yet another bond purchase by the hedge fund with the largest fixed income portfolio in the history of the world.
However, one simple way of expressing just this risk is through the use of ten year equivalents: Ten-year equivalents are the amount of 10-year notes that must be held by the Fed in order to remove the same amount of interest rate risk from the market as its current holdings. What this methodology allows is to represent the Fed's holdings of all marketable securities on a linear continuum, and represent the remainder, or those bonds held by the private sector, on the side.
So what may come as a surprise to most, is that as of this week's H.4.1 update, the amount of ten-year equivalents held by the Fed increased to $1.583 trillion from $1.576 trillion in the prior week, which reduces the amount available to the private sector to $3.637 trillion from $3.668 trillion in the prior week. And also, thanks to maturities, and purchase by the Fed from the secondary market, there were $5.219 trillion ten-year equivalents outstanding, down from $5.244 trillion in the prior week.
What this means simply is that as of this moment, the Fed has, in its possession, a record 30.32% of all outstanding ten year equivalents, or said in plain English: duration-adjusted government bonds. It also means that the amount of bonds left in the hands of the private sector has dropped to a record low 69.68% from 69.95% in the prior week.
America may or may not be becoming increasingly socialist and/or nationalized, but there is no doubt about it: its bond market most certainly is.
Chart of total ten year equivalents, broken down by Private sector and the Fed (courtesy of StoneMcCarthy):
The percentage of the entire US bond market currently owned by the Fed (courtesy of StoneMcCarthy):
Finally, the above means that with every passing week, the Fed's creeping takeover of the US bond market absorbs just under 0.3% of all TSY bonds outstanding: a pace which means the Fed will own 45% of all in 2014, 60% in 2015, 75% in 2016 and 90% or so by the end of 2017 (and ifthe US budget deficit is indeed contracting, these targets will be hit far sooner).
By the end of 2018 there would be no privately held US treasury paper.
Still think QE can go on for ever?
P.S. as a bonus, here is a breakdown of the Fed's SOMA holdings by CUSIP