FED Balance Sheet June 2013

The FED's Balance Sheet is exploding again. The total form is shown above, with week average numbers.

By eliminating some minor items the chart above clearly shows the explosion in Treasury holdings as well as Mortgage Backed Securities. There was a concern when it was at $2.5 Trillion but it is heading to $3.5 Trillion.

The problem is that the ratio of FRB debt, they call it assets, to Federal Government debt is exploding. This will make the turn around ever so more painful when the FED unloads this junk.