Do you know why the pdfs of Zoltan's Dispatches are no longer available at the original links? I only see a blank page when I click on them.

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Why assume bond redemptions go only to the Fed? If Treasury redeems private bond holders out of the TGA, aren't reserves shifted to private banks where they survive, not disappear as claimed in the blog? Is it wrong to say that reserves are only destroyed if the TGA pays the Fed and the Fed chooses not to reinvest for arbitrary, fickle, psychological, policy reasons, not any sort of necessity?

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I dont understand why Fed balance sheet will contract

Primary dealers buys this TS from Treasury

when The Treasury draws on its TGA deposits to pay down maturing securities and this result in increasing reserves.

Dr. Engin YILMAZ

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