The Fed’s own holdings of MBS shrank $8.357 billion and foreign central banks’ holdings of MBS fell a similar amount, which wouldn’t be surprising if most of the latter turns out to have been attributed to the “foreign” bits of the NY Fed (Where’s Ron Paul’s audit when we need it? ) Meanwhile, you’ll now have to go back seventeen weeks, all the way to when IAEA was still giving Fukushima updates, to see a similar level of foreign central bank holdings of Treasury Debt. Whether it’s Japan’s 3/11 struggles, the eurozone crisis or Chinese rebalancing the cenbanks’ redemption of…
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