Wednesday, September 16, 2009
"Treasury currently anticipates that the balance in the Treasury's Supplementary Financing Account will decrease in the coming weeks to $15 billion, as outstanding Supplementary Financing Program bills mature and are not rolled over. This action is being taken to preserve flexibility in the conduct of debt management policy."On balance September 9, the Fed holds $199,932 million in liabilities to the Treasury under the Supplementary Financing Account, of which $199,932 - $15,000 = $184,932 million will be paid to the Treasury. How much do you wanna bet that the liquidation of the Treasury's account ends up in excess reserves, increasing the balance from $823,201 million on September 9 to $1,008,133 million (yup, that's $trillions).