Remember the Dallas Fed's Fisher saying that "The Fed will not become the handmaiden of Treasury"? He was lying (The Fed already has), and now there is proof. Mad props to both Zerohedge and Chris Martenson for noticing this; I missed the facts buried in the CUSIP list. The upshot: The Fed bought nearly half of LAST WEEK'S 7 year Treasury Issuance TODAY. Huh? Remember, after the 5 year auction that went badly (and which I wrote about) the 7yr auction went "well." Rick Santelli (and a lot of other people) agreed - demand was strong. That made no sense to me at the time, coming one day after a near-failure in the 5 year. Well now we know what happened: The Fed pretty clearly pre-arranged, either explicitly or by "suggestion", that the Primary Dealers take up the auction with the promise that The Fed would immediately monetize half what the Primary Dealer's took! Folks, this is beyond bad - it is pernicious and outrageous conduct by The F
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