Fed Monetized $11.4 Billion More Than Targeted Last Month; Will Monetize an Extra $97 Billion for Entire QE2 Program

As part of its new scared-shitless-of-Ron-Paul transparency initiative, not only will the first webcast of a Fed meeting take place on December 16, but today, in accordance with a pledge made concurrent with the last FOMC meeting, we get the first look of actual prices paid by the Fed for QE2 Treasury coupons.

Whereas previously, we were only privy to Fed disclosures of holdings on a par value basis, courtesy of ZeroHedge and some number crunching by John Lohman, we know that the Fed is now underwater $2.425 Billion on last month's purchases alone. In addition, because market prices for most issues purchased are materially above par (some by as much as 52%), we learn that the Fed actually monetized $116.4 billion in the last 30 days instead of $105 billion, as was announced on November 10.

Extrapolating this across the entire planned $900 billion in par purchases from QE2 and QE Lite, we can expect actual purchases to be just $3 billion shy of a cool $1 trillion. Good thing Bernanke's not printing any money.