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$7.9 Billion POMO Closes As Fed Ties China For Top Global Holder Of US Treasurys With $868 Billion

Tyler Durden's picture




 

Today's $7.9 billion POMO is now history, closing at a surprisingly low 3.5x submitted to accepted ratio. What this does to stocks will be closely watched as Friday's POMO was a failure. Two red days on POMO in a row will be the wrong signal the FRBNY will want to send to the Fed frontrunners. More importantly, today's POMO in addition to last Friday's $7.2 billion monetization, adds to the Fed's total UST holdings of $853 billion as of last Wednesday, meaning the Fed has now tied China for top holder of US Treasury securities, both of which have $868 Billion in holdings. Tomorrow's POMO will make the Fed the top holder of USTs in the world, or at least until the next TIC announcement (also tomorrow) which will show that China's UST holdings as of September very likely grew by another $15-20 billion. Nonetheless, with a run rate of $7 billion in daily monetizations, the Fed will overtake that number by the end of the week as well.

 

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Mon, 11/15/2010 - 12:15 | 727619 RobotTrader
RobotTrader's picture

Looks like the used the POMO today to blowtorch some arbs trying to short CAT after the BUCY announcement...

 

Mon, 11/15/2010 - 13:30 | 727825 Bill Lumbergh
Bill Lumbergh's picture

Correlation does not mean causation.

Mon, 11/15/2010 - 12:17 | 727620 williambanzai7
williambanzai7's picture

I guess that means we don't got to pay no heed to them no more.

Mon, 11/15/2010 - 12:17 | 727621 mikla
mikla's picture

The Fed being #1 Holder of US Treasuries is a mere formality (given their debasing, and non-disclosed market positions), but IMHO the announcement itself, and its repeated statement by the layman, will have real implications.

On the bright side, what it took China to accumulate over decades the Fed will duplicate in a day in the not-too-distant-future.

Mon, 11/15/2010 - 12:22 | 727639 Ragnarok
Ragnarok's picture

That will make great sound bites for the talking heads in the MSM, replacing China with the Fed when ever they talk about our biggest holder of debt.

 

So instead of being beholden to a communist nation, we are even more beholden to a private banking cartel.... sweet.

Mon, 11/15/2010 - 12:29 | 727657 nonclaim
nonclaim's picture

It also means they can outbid China for strategic international assets.

This is a key diplomatic issue.

Mon, 11/15/2010 - 12:52 | 727756 Oh regional Indian
Oh regional Indian's picture

Non-claim, that part China does with the rest of it's DOllar holdings, that which it does nto deploy into UST. 

The US does not have that (reserve), only the printing press, which is inherently debasionary and inflationary.

ORI

http://aadivaahan.wordpress.com

Mon, 11/15/2010 - 13:51 | 727873 nonclaim
nonclaim's picture

The Fed's reserves can be used in many ways once you realize the rules change so fast there's no rule. See the earlier pool here at ZH (what would Fed buy next).

The printing press is the US reserve. Inflating the monetary base also means reducing the buying power of other USD/UST holders. Double win for the US.

Mon, 11/15/2010 - 12:18 | 727626 Ragnarok
Ragnarok's picture

Good thing the GM IPO is over subscribed, becasuse POMO ain't cutting it.

Mon, 11/15/2010 - 12:18 | 727627 DollarDive
DollarDive's picture

Did Fido just happen to find a bone on the BUCY takeout.  Take a look at this recent 13g

 

http://3.bp.blogspot.com/_boO_BV8n9ko/TOFc9dJ9VRI/AAAAAAAAITc/-mzRm2yHlq0/s1600/6md.JPG

Mon, 11/15/2010 - 12:19 | 727628 snowball777
snowball777's picture

What are we to make of these ChiComs that wag their fingers so violently while still buying paper?

Kinda like bitching about the quality of the food with your mouth full.

Mon, 11/15/2010 - 12:40 | 727702 thepigman
thepigman's picture

What makes you think the Commies

are buying? More likely, they are

selling and that's what QE2 is really

there for. The dollar devaluation is Ben's

gun to their head. Boosting our trade

deficit is over. Too much unemployment

and fiscal insanity.

Mon, 11/15/2010 - 12:54 | 727764 thepigman
thepigman's picture

China won't revalue so we have no

choice any more. The trade

deficit continues to kill US employment.

Untenable. Obama tells Bernake, go

ahead, put the screws to em, but

cover yourself. QE2 springs into

existence.

Mon, 11/15/2010 - 12:20 | 727633 SheepDog-One
SheepDog-One's picture

Same as the Underpants Gnomes business plan.

Step 1- Collect underpants.

Step 2-   ?

Step 3-  PROFIT!

I see no difference between FRBNY and Underpants Gnomes plans.

Mon, 11/15/2010 - 12:41 | 727709 cosmictrainwreck
cosmictrainwreck's picture

LOL but "it's good work, if you can get it" wish I could find a money-maker like that

Mon, 11/15/2010 - 12:20 | 727634 Dick Darlington
Dick Darlington's picture

Let's give Benron and The Sackman a big hand shall we.

Mon, 11/15/2010 - 12:33 | 727679 snowball777
snowball777's picture

Sure, just let me get the gloves oiled.

Mon, 11/15/2010 - 13:15 | 727802 merehuman
merehuman's picture

sorry Dick, all i can afford is a middle finger. I'll give them that

Mon, 11/15/2010 - 12:20 | 727635 plocequ1
plocequ1's picture

Now that was easy. Bond Market? The Dollar? The Deficit? Who gives a fuck? Just get Google to $ 9000/ Share

Mon, 11/15/2010 - 12:26 | 727652 HarryWanger
HarryWanger's picture

Do you realize how strong retail sales have come back? We're just 1.8% below the pre-recession peak. And, setting up to have the best holiday shopping season since 2006.

So it's not just the Fed, it's the consumer that has now come back in full force like the recession never happened. Someone try explaining that with 9.6% unemployment.

Mon, 11/15/2010 - 12:27 | 727659 SheepDog-One
SheepDog-One's picture

If retail sales are so great, why are sales tax revenues in the shitter? 

Mon, 11/15/2010 - 12:30 | 727665 plocequ1
plocequ1's picture

.

Mon, 11/15/2010 - 12:30 | 727669 plocequ1
plocequ1's picture

I forgot to add.. ( Sarcasmx2 )

Mon, 11/15/2010 - 12:48 | 727738 LowProfile
LowProfile's picture

If retail sales are so great, why are sales tax revenues in the shitter?

(crickets)

Mon, 11/15/2010 - 13:37 | 727839 tmosley
tmosley's picture

One indicator is manipulated (reported by the Feds), the other is not (reported by the states).

Mon, 11/15/2010 - 12:35 | 727683 snowball777
snowball777's picture

Why I just bought an Escalade and filled it with iPads myself... <yawn>

Inventories?

RE?

Semblance of a clue?

Mon, 11/15/2010 - 12:45 | 727727 HarryWanger
HarryWanger's picture

Facts are facts. And the fact right now is we're setting up to have holiday sales comparable to where they were pre-crisis. There's no arguing that we're back to that level. Facts speak for themselves. This tells me, we're on our way to actually turning this around by a consumer led economy.

Mon, 11/15/2010 - 12:46 | 727733 Tyler Durden
Tyler Durden's picture

Here are the facts (per Rosenberg):

THREE REASONS WHY I’M WORRIED ABOUT U.S. RETAILERS

Unlike last year, they are actually bracing (more like praying) for a solid holiday shopping season:

1. In the last two months, the U.S. retailers have, on net, hired 27k workers. So they have hired staff at a pace we have not seen since the boom of 2006. This time last year, retailers cut 102k from staffing in the Sept-Oct decline.

2. Outside of autos, total consumer spending volumes sales are flat. This was the case in September and looks to have been repeated in October.

3. Inventories are no longer that lean. The inventory-to-sales ratio for general merchandise stores has gone from 1.39x in March to 1.43 currently; from 1.68x in furniture/appliances to 1.74x, and to 2.34x from 2.25x in clothing.

Mon, 11/15/2010 - 12:56 | 727751 SheepDog-One
SheepDog-One's picture

Well Harry does like facts, but just as long as they're imaginary and support his outlook.

Unless POMO is going to the broke unemployed public, I dont see some wild holiday shopping spree to beat all records. WTF is that nonsense? Sounds like total desperation to me.

I took a $50 gift card into Sears yesterday, the place was a ghost town at noon. All the retail parking lots around here are dead empty. I just dont see any wild holiday shopping craz shaping up.

For Christmas, buy lots of silver coins as presents, crush JP Morgan.

Mon, 11/15/2010 - 13:07 | 727789 slaughterer
slaughterer's picture

SheepDog: and that Sears would be located where?  The one down the road from me closed its doors years ago. 

JP Santa is going to have a tough time getting those reindeer to lug the tons of bullion through the sky to ZH chimneys this Christmas. 

Mon, 11/15/2010 - 13:11 | 727794 HarryWanger
HarryWanger's picture

Had to stop at the Verizon store yesterday to pick up a new phone. It's located in a newer mall complex just outside of Seattle. Contrary to your Sears experience, the lot was jammed. I knew it would be busy but that was insanely busy. 

Mon, 11/15/2010 - 13:39 | 727845 tmosley
tmosley's picture

Sadly, they were all looking for minimum wage jobs to replace the well paid jobs they lost two years ago, not shopping.

Mon, 11/15/2010 - 13:53 | 727878 tahoebumsmith
tahoebumsmith's picture

Harry,

Or should I say Steve? Why don't you fucking get it? Yeah I'm getting all the credit card offers again and the TV is flooded with the TBTF commercials giving incentive to use the cards. The problem has always been about debt that can never be re-paid and blowing up another debt bubble to solve the debt problem isn't the answer. You toot your horn about how strong the economy is? If this is the actual case then why is the Government having to monetize it's own debt? Don't forget how many people are not paying mortgages and don't forget about how many people are on Government life support! That is about to end and then what? It's nothing more then a mirage, a pseudo recovery that is masked by increasing debt obligations. So go buy your new car with 0 down, 0 first payment, o% interest for the first*35 months and then realize once you hit the Oasis it really was just a mirage. Heck, I could take 4 of these credit card offers and live like a king for a few years, then what? And let me ask you one very important question? Where is all this free money coming from? It's coming from our children, the innocent kids that will someday have to fight some really scary war to protect our country from all of its creditors! So go back to your desk at CNBC and smoke some more hopium because you simply don't understand where this is going to end.

Mon, 11/15/2010 - 14:29 | 727963 tallystick
tallystick's picture

Only store I see consistently busy is the grocery store.

 

Last time I went to Sprint store is because they can't keep their 4G mobile broadband working.

Mon, 11/15/2010 - 13:03 | 727784 HarryWanger
HarryWanger's picture

Why would Rosenberg be worried and then go on to list the exact reasons why he shouldn't be worried. He should be optimistic if we're staring at strong numbers heading into the season AND hiring at the 2006 pace. 

I see this as reason to be optimistic not "worried". But then again, it is Rosie.

Mon, 11/15/2010 - 13:54 | 727881 chinaguy
chinaguy's picture

Both recent container loads into Long Beach and the Ceridian index (real time diesel fuels usage) both indicate a poor holiday shipping season.

Latest poll shows the number of consumers planning on spending more that $300 on Xmas gifts this year down from last year. retail sales x-auto sales (fleet sales) not impressive.

One can not get a balanced view if they only read MSM headlines.

Mon, 11/15/2010 - 12:36 | 727691 Slash
Slash's picture

the dumbass's who are 15k in credit card debt are tired of pretending to be responsible and want to run up more debt. The "confidence multiplier" at work....people are being suckered into thinking tomorrow will always be better than today again. Why save or be responsible when you're just going to get a raise and big bonus with fantanstic job security? after all...stocks are up! green shoots abound!

Mon, 11/15/2010 - 14:00 | 727897 Beatscape
Beatscape's picture

You have a good point about people being suckered into thinking things are getting better.  That's why Helicopter Ben likes inflation--it gets people to spend more money thinking that times are booming. Consumers have become very adept at using credit cards.  The banks encourage them to take on debt and they get a great high from buying iPads.

Mon, 11/15/2010 - 12:41 | 727710 thepigman
thepigman's picture

All cars and gasoline. I wouldn't get

excited.

Mon, 11/15/2010 - 12:45 | 727730 Fearless Rick
Fearless Rick's picture

Don't forget 2 years worth of UI benefits, rent subsidies, food stamps for 42 million, all makes the ecnomy rather buoyant, like a turd floating in a sea of horse-piss.

Mon, 11/15/2010 - 13:01 | 727779 jus_lite_reading
jus_lite_reading's picture

What is your favorite flavor of gov't KoolAID?

Mon, 11/15/2010 - 13:56 | 727890 Beatscape
Beatscape's picture

I wouldn't get too excited... The retail sales figure was driven mostly by vehicle purchases. Sales less autos saw a more mild increase of 0.4%.  Auto sales are still seeing some catch-up from last year.

Mon, 11/15/2010 - 12:32 | 727651 SheepDog-One
SheepDog-One's picture

It takes $8 billion now just to prop the DOW up 40 points? I dont see the point of any of this madness.

Mon, 11/15/2010 - 12:35 | 727687 snowball777
snowball777's picture

It would be much more obvious if you lived in a developing economy.

Mon, 11/15/2010 - 12:28 | 727662 Caviar Emptor
Caviar Emptor's picture

We're only tied the record??

Man, I'm disappointed. 

Let's all support the Fed with fight songs, screams and cheerleaders from CNBS. 

 

 

Mon, 11/15/2010 - 12:44 | 727719 jus_lite_reading
jus_lite_reading's picture

US: $868,990,871,092

China: $868,990,871,091

 

;)

Mon, 11/15/2010 - 12:46 | 727731 Caviar Emptor
Caviar Emptor's picture

Break out the bubbly!!

Mon, 11/15/2010 - 12:49 | 727739 Dr. No
Dr. No's picture

When market-to-market, I suspect China is still ahead.  The FED is buying at the final stretch of a mother of all bubbles, as Bill Gross wrote.  As they loose control fo interest rates, these treasuries are going to drop in value like a stone.

Mon, 11/15/2010 - 13:27 | 727822 Tense INDIAN
Tense INDIAN's picture

looks like in this end-game, both the stock market and the bond market will blow off at the same time.......along with the currency collapses.....

Mon, 11/15/2010 - 13:46 | 727860 Dr. No
Dr. No's picture

Bruce wrote an article about this.  Once economy "recovers" and the FED needs to withraw liquidity, how are they going to do it?  Who is going to buy these treasuries?  They will have to be deeply discounted to find buyers.  Good thing they got so many to sell.

Mon, 11/15/2010 - 14:11 | 727923 NotApplicable
NotApplicable's picture

I don't expect the Fed to ever sell any Treasurys, but instead swap them with [insert toxic asset of the day here] whoever needs to get bailed out next, like California, for instance.

Mon, 11/15/2010 - 12:29 | 727663 myztix
myztix's picture

??? So you don't consider the market rallying from Sept to now to have anything with QE being pumped in?

Think of it as a pump and dump. Now is the sell on news. That's why you are hearing all the "complaining" about how it's not working. Seems like people are piling in on the double top.

 

 

 

Mon, 11/15/2010 - 12:34 | 727682 SheepDog-One
SheepDog-One's picture

'Market rally'...well you have to put it in proper persective dont you?

The entire run from DOW 6,500 to 11,400 has resulted in a net loss of purchasing power. 

Too many people buying into the CNBC glittery hype.

Mon, 11/15/2010 - 12:44 | 727725 thepigman
thepigman's picture

Exactly....this QE2 trade mess is a global

food fight over a far smaller pie, not a

bigger one. Anyone buying equities

here is out of their minds.

Mon, 11/15/2010 - 12:30 | 727671 Caviar Emptor
Caviar Emptor's picture

Ra ra roon! POMO to the moon! Ra ra ret! Monetize the debt!

Mon, 11/15/2010 - 12:35 | 727688 Clark_Griswold ...
Clark_Griswold Hedge Mnger's picture

So if the Fed will soon be the undisputed #1, holder, does that mean we can all official say F*ck You and do a nationwide Squat Fest...?

Mon, 11/15/2010 - 12:37 | 727693 snowball777
snowball777's picture

Right up until the first fires start...

Mon, 11/15/2010 - 12:41 | 727707 I Am The Unknow...
I Am The Unknown Comic's picture

I know most everyone here is busy and focued on trading right now, but I want to bring up something that has been on my mind and ask for feedback.  I'm not as astute as most of you, so I would like to open up debate on the following idea:

If any of the PDs are directly influenced by the Fed or Treasury's money (example: ownership of sigificant shares like with Citibank), and are directing the PDs to "inflate asset prices" by buying up the stock markets, then does it or does it not logically follow that they are in effect, nationalizing the stock market?  Wouldn't this be further encroachment of the government into the private sector and isn't this supposed to be blatantly illegal, or not? 

Please forgive me if my thought process is flawed, but please also correct me.  Thanks!

Mon, 11/15/2010 - 12:49 | 727740 Fearless Rick
Fearless Rick's picture

Yep, thought process flawed...

I know most everyone here is busy and focued on trading right now...

Not me. I was cruising porn until you interrupted.

Mon, 11/15/2010 - 12:52 | 727750 I Am The Unknow...
I Am The Unknown Comic's picture

Thanks a lot Fearless Rick, now I KNOW we are all screwed!  (ha ha)

Mon, 11/15/2010 - 12:53 | 727762 Bam_Man
Bam_Man's picture

Of course they are nationalizing the stock market. They are also busy nationalizing the bond market, the auto industry and the financial system through ownership stakes in TBTF banks and AIG.

"Blatantly illegal" stopped mattering a long time ago.

Mon, 11/15/2010 - 13:03 | 727785 I Am The Unknow...
I Am The Unknown Comic's picture

Thank you Bam_Man.  Yes, it certainly seems that way to me. 

I must say that doesn't this development represent a much higher level of moral hazard?  I mean it is one thing to nationalize an individual company (GM), and other thing much worse to nationalize multiple companies within an industry (banking), but isn't it leaps and bounds more moral hazard to nationalize the freaking stock and bond markets?!?!?   Wouldn't that put the USA at about the same level as the USSR in the 80's?  Who the hell in their right mind would invest in that without expecting enormous rates of return.....and think what that means to the average Joe!?    

Mon, 11/15/2010 - 14:14 | 727929 NotApplicable
NotApplicable's picture

Always remember, government is the most organized form of crime.

Mon, 11/15/2010 - 12:44 | 727722 unum mountaineer
unum mountaineer's picture

Yahtzee!!

Mon, 11/15/2010 - 12:55 | 727761 99er
Mon, 11/15/2010 - 12:58 | 727774 SheepDog-One
SheepDog-One's picture

Theyre now pumping into a vacuum. They pump higher, then whine about why retail isnt stepping up to the plate for the pump pass-off. Hell with it, let them keep going, its rather amusing.

Mon, 11/15/2010 - 13:04 | 727787 thepigman
thepigman's picture

QE2 is global Smoot Hawley. Cue Wiley
Coyote realizing he is over the cliff.

Mon, 11/15/2010 - 14:28 | 727962 Captain Kink
Captain Kink's picture

+1

great image.  got a chuckle out of me and i am horrendously hung over.

Mon, 11/15/2010 - 13:10 | 727792 repoman
repoman's picture

So both the Fed and China each have a claim of nearly $1 Trillion on future taxes from the American worker. Not exactly the kind of people I would want controlling the power to / flow of tax revenues. 

Mon, 11/15/2010 - 13:12 | 727796 edmondantes
edmondantes's picture
http://video.ft.com/v/673336860001/China-should-stop-prioritising-growth This clip suggests inflation is already rampant in China ... labour costs rising at double digits... severe tightness in manual labour....  people in Shenzhen shopping in Hong Kong because it is cheaper...!! costs of certain consumer basics rising at 20-30% a year so I think China will soon be exporting some serious inflation... I wonder how the CPI will then be manipulated so they can continue to pretend there is no inflation in US 
Mon, 11/15/2010 - 13:31 | 727826 thepigman
thepigman's picture

If they maintain the peg, the inflation

stays there.

Mon, 11/15/2010 - 13:15 | 727801 nickels
nickels's picture

The PEOPLE still run this joint! Want to stop the Fed, the rotten banks, the Bernake Hanke Panke? Want to force the Gov't to restore stability and return to a system based on specie and not speciousness? Try this: ( I did last week and it feels good!) Go to your local bank and ask to withdraw $1000. Demand it in NICKELS. The teller will look at you funny and then consult with other tellers. Then they'll all look at you funny. You say "I know you don't havethis on hand- just make a phone call and get it for me next week with your next shipment. Explain to anybody who's interested that nickels are worth 125% of face value. That your $1000 is worth $1250 as soon as you make the exchange, and that you'll keep coming back for more as long as the dollar continues to be devalued. You may see light bulbs appearing over the heads of other bank customers within earshot. If thia idea caught on it would go viral because it's simple and anyone can participate. It's not a bank run exactly because only the early movers would get any nickels. The supply would quickly be exhausted. Those who were left out would say "Why don't I get to trade MY $1000 for $1250?" The people who get nickels would watch their value increase as the dollar is depreciated. The real fun begins when the Gov't tries to explain why they have to stop making specie nickels at a time when inflation is "not a problem". The alternative is for them to provide nickels to everyone who wants them-(eventually everyone with a savings or investment account). Who wouldn't want to take an immediate 25% profit on their money?? Nickels are mostly copper with some nickel. Check the metal value of US coins daily at "coinflation.com". Pennies are an even better deal but you'd have to sort out the real ones from the zinc. Too much work. This action constitutes a real vote. It calls shenanigans on the Fed and will require a response from the Gov't in language even Sarah Palin could understand. As we all suspected as kids, Scrooge McDuck was right!

Tue, 11/16/2010 - 03:05 | 730026 mamba-mamba
mamba-mamba's picture

A nickel weighs five grams. That's 100 grams per dollar. So 1000 dollars in nickels weighs 100,000 grams, which is 100 kilos, which is 220 lbs. How are you planning to cart those home?

Also, the bank is under no obligation to provide you with the nickels.

If you want to hoarde nickels, go ahead. But I recommend you get about $100 dollars at a time (so the bank doesn't tell you to F off), and build a nice strong box on a slab foundation to hold them.

And I am sure that the US will eventually stop making nickels. I think the mint already wants to stop but congress wouldn't let them. I think they cost around 10 cents each to make, once you factor in labor and all.

--mamba-mamba

Mon, 11/15/2010 - 13:29 | 727824 Bill Lumbergh
Bill Lumbergh's picture

This has not been an impressive show of POMO today.  Perhaps we need to re-evaluate the notion that this money will only go long into speculative instruments.  The large rally we have seen the past few months has been in anticipation of POMO but so far there has not been much follow through.

Mon, 11/15/2010 - 13:42 | 727850 thepigman
thepigman's picture

For sure. Doesn't anyone realize we're
now screwing the emerging markets and
at the same time we are entirely
correlated with them? Take a wild guess how that will end.

Mon, 11/15/2010 - 13:44 | 727856 Oh regional Indian
Oh regional Indian's picture

The clearest analogy is of a balloon with ripping holes for leaks.

Since you have to keep it inflated, only way is ever increasing amounts of "input". Output tends to be hap-hazard and of not much use at all.

That is global finance today. Pardon the hashed metaphors, but this humpty dumpty will burst.

Soon. 

Talk about negative velocity.

ORI

http://aadivaahan.wordpress.com

Mon, 11/15/2010 - 13:45 | 727857 JuicyTheAnimal
JuicyTheAnimal's picture

Is it time for MSM to start blurting out "green shoots" over and over and over?

Mon, 11/15/2010 - 14:09 | 727919 unum mountaineer
unum mountaineer's picture

more like braying like an ass

Mon, 11/15/2010 - 14:09 | 727906 tom
tom's picture

Tyler, I think you know perfectly well that China has a lot more Treasuries than show up in monthly TIC data.

The best timely gauge of China's Treasuries activity is the Fed's weekly data on foreign central bank holdings of Treasuries in its custody. Those are up $270 billion since August 11, about $21 billion a week. That compares to a growth rate of less than $6 billion a week over the previous year. In other words, foreign central banks reacted to "QE light", the Jackson hole speech and other signals of pending QE2 by quadrupling their pace of accumulating Treasuries.

This data is not broken down by country, but China is almost half the total. It's here: http://www.federalreserve.gov/releases/h41/hist/h41hist1.htm

Apparently, China was doing a lot of buying Treasuries on the QE2 rumor, and/or stocking up on Treasuries while there was still significant net issuance to the market.

Also, since the dollar sharply weakened during this period, this means that others were dumping dollar assets at a much faster pace than the foreign central banks were buying.

Mon, 11/15/2010 - 14:14 | 727928 trav7777
trav7777's picture

Brian Sachs FTW!

Mon, 11/15/2010 - 15:11 | 728091 the rookie cynic
the rookie cynic's picture

I think the U.S.debt bubble has a way to go yet. U.S. debt is still be best looking horse in the Western economy-glue factory. Japan, UK, and Eurozone have worse debt problems.

Mon, 11/15/2010 - 17:19 | 728466 Die Weiße Rose
Die Weiße Rose's picture

I went food shopping tonight in Sydney Australia at the Coles Super-market store and was shocked to see that all prices for fruit ,vegetables and basic produce have gone up at least

5-10% if not more! Lots of packaging had changed to 75% size with the same price.

What I also saw was lots and lots of USA produce selling at half the price of the Australian produced goods.There were grapes on display from Australia at $12 AUD per kilo and right beside there was a tray full of USA imported Grapes for $6 AUD per Kilo.

There were also Dates and lots of other food from the USA on display,at half the price of all the Australian goods.To be honest,I was so disgusted I did not buy any grapes at all and just got the basics ,then left the shop.Australian farmers are doing it tough.They get hardly any support from the Government,they go through Draughts and Locusts plagues,no water,no crops,wasted years and now they got to compete with USA goods at half the price.

I am not Australian,but as long as I live out here every cent i got goes only to Australian produced goods.And If I ever need another Computer,I will buy a Chinese one,that's how much rage i feel about what is really happening out there in regard to "Trade Imbalances."

I do like Americans as a People and I have many Friends in the US,but I must say that the US Government just sucks.Now I can't even go to the local supermarket without being constantly reminded of all the price manipulation and trade imbalances that is going on.

And it is not caused by the Chinese - it is caused by the USA and Bernanke's stimulus Bubble that is causing huge inflation everywhere.

 On the Shanghai Metals exchange a ton of Copper is : ??65375 Yuan

that is US $ 9,842.00 about $1000 Dollars more than anywhere else!

I have stopped watching commercial News Channels ,instead I am eating Rice,drink Tea,meditate and do Yoga a lot, just to keep myself calm...

Now I just read that California is going to issue "a huge supply of municipal debt coming to the market this week, almost twice as much as usual and the increased supply is adding pressure on the market."California, which is trying to address at $25.4 billion budget hole, began to take orders from retail investors Monday on $10 billion in short-term notes. That state is also on tap to issue $2 billion in taxable bonds as part of the Build America Bonds program, $1.75 billion general obligation tax-exempt bonds, and $275 million in bonds backed by public works, all before Thanksgiving.

Thanksgiving...what for?

who, I wonder is going to buy all those Muni Bonds ?

Rudolf the red nosed Raindeer ?

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