• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

The Bond Vigilantes Are Here: US Net Notional CDS Outstanding Surpasses Greece For The First Time

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Wed, 07/20/2011 - 09:20 | 1473364 jkruffin
jkruffin's picture

Well, it is about time!!!!!!! It took em' long enough. Time to put Bernanke out of business....

Wed, 07/20/2011 - 09:34 | 1473422 Dr. Engali
Dr. Engali's picture

Not yet I don't have enough gold.

Wed, 07/20/2011 - 10:47 | 1473646 narnia
narnia's picture

bond vigilantes are bringing a knife to a gun fight with the Fed if they think they will be driving yields or collecting on a CDS.  the Fed is not going to let bond auctions fail (and are prepared to be the only buyer left standing) & the Treasury is not going to allow a default.    

Wed, 07/20/2011 - 11:00 | 1473720 baby_BLYTHE
baby_BLYTHE's picture

the primary dealer relationship with the FED virtually guarantees there will never be a 'failed' auction.

We can see the trend> Raise Debt Ceiling + Calculate the CPI more fraudulently + Print more money

The US government will inflate its way out. Very high inflation rates are in our immediate future

Wed, 07/20/2011 - 11:04 | 1473736 Blithering ORSA
Blithering ORSA's picture

Commoditize, ma'am. The currency will be used as a safety valve.  The lost value has to go somewhere.  I'd prefer silver to gold for the nonce.  The ratio of Au/Ag has gotten fairly rediculus lately.

Wed, 07/20/2011 - 11:39 | 1473901 unununium
unununium's picture

> Very high inflation rates are in our immediate future

You do realize that also kills the 30-yr.

Wed, 07/20/2011 - 11:45 | 1473934 baby_BLYTHE
baby_BLYTHE's picture

in real terms, inflation isalready  well above the yield on the 30-yr

Wed, 07/20/2011 - 14:33 | 1474566 narnia
narnia's picture

the 30 year, or any other security for that matter, gets killed when it has no bidders.  my guess is, the Fed will let yields go up marginally in line with their bogus inflation numbers & bid the crap (directly or indirectly) out of any movements above their centrally planned boundaries.

whatever is left of the US private sector & our debtors will not be able to shoulder the consequences of this game indefinitely. 


Wed, 07/20/2011 - 10:50 | 1473659 whatsinaname
whatsinaname's picture

Honestly, I dont have faith in these so-called vigilantes. The term "vigilantes" is so 80s...

Wed, 07/20/2011 - 11:43 | 1473930 Zero Debt
Zero Debt's picture

The bond vigilantes are here! We are saved!

Wed, 07/20/2011 - 09:21 | 1473368 Flore
Flore's picture

But but.. if the casino goes bust.. what are your chips worth then ?

Wed, 07/20/2011 - 09:33 | 1473415 Oh regional Indian
Oh regional Indian's picture

The potatoes and oil + energy input in terms of heat that was put in. Plus a small margin for labour perhaps?



Wed, 07/20/2011 - 10:26 | 1473568 falak pema
falak pema's picture

hey Ori, I have had my book published. Here its is. 

On the 33rd...  http://www2.xlibris.com/books/webimages/wd/uk/301941/

So when do you publish yours?


Wed, 07/20/2011 - 09:21 | 1473369 cossack55
cossack55's picture

Why is it I trust justice from a vigilante more than from the US justice system?

Wed, 07/20/2011 - 09:24 | 1473381 the not so migh...
the not so mighty maximiza's picture

scary isn't it , thinking such thoughts.

Wed, 07/20/2011 - 09:33 | 1473416 oogs66
oogs66's picture

still scary that the best financial articles now come from rolling stone magazine....

Wed, 07/20/2011 - 09:37 | 1473426 Cognitive Dissonance
Cognitive Dissonance's picture

Up is down, left and right, good is bad, debt is money. Welcome to the rabbit hole. Alice will be by later with drinks and some finger food.

BYOD  (bring your own debt)

Wed, 07/20/2011 - 10:10 | 1473517 Arius
Arius's picture

Party on ... Biatchez !

welcome to the Chinese rule ....

Wed, 07/20/2011 - 10:20 | 1473537 Cognitive Dissonance
Cognitive Dissonance's picture

I welcome my Asian overlords. It's about time we got some real Chinese food around here instead of this MSG crap.  

I also welcome my stealth serial junker back after a few well deserved days off. Thanks for all you do. :>)

Wed, 07/20/2011 - 10:50 | 1473662 trav7777
trav7777's picture

I've got at least 2 of those...I can post the weather forecast and get junked!

Wed, 07/20/2011 - 09:22 | 1473370 monopoly
monopoly's picture

This is taking time but no surprises for us.

Wed, 07/20/2011 - 09:23 | 1473374 Cdad
Cdad's picture

Again, why was the 30 year bid up yesterday?  The plan being contemplated by the weak-kneed Senate will NOT be good for treasuries.

Wed, 07/20/2011 - 09:33 | 1473411 Cognitive Dissonance
Cognitive Dissonance's picture

Brother Cdad,

I have decide to finally surrender to the wonderful embrace of the collective insanity. Please join me later this afternoon by the pool for drinks. It will be gloriously refreshing.

Make sure to wear your Panama banana republic hat. I'll be wearing my Bermuda financial scam shorts and a very loud Hawaiian shirt. Bernanke has promised to make an appreance and welcome us to the fraud machine. Please don't embarrass me by forgetting to kiss his ring.

Brother CD

Wed, 07/20/2011 - 09:37 | 1473427 Cdad
Cdad's picture

Understood, brother Cog,

I'll be the really, really drunk guy who forgot his swimsuit and jumps in the pool fully clothed.

Wed, 07/20/2011 - 09:46 | 1473445 Cognitive Dissonance
Cognitive Dissonance's picture


Just don't forget to kiss the ring. We don't want to blow our initiation. And make sure to bring your own K-Y. No sharing at this club. Either you BYOK-Y or you go dry.

Wed, 07/20/2011 - 09:23 | 1473376 Commander Cody
Commander Cody's picture

And where is Greece?

Wed, 07/20/2011 - 09:27 | 1473392 Tyler Durden
Tyler Durden's picture

Hellenic Republic

Wed, 07/20/2011 - 09:47 | 1473448 Sudden Debt
Sudden Debt's picture

Tyler, how come China is so high up?

Wed, 07/20/2011 - 09:52 | 1473457 Dr. Engali
Dr. Engali's picture

Because they are fucked too. It's a global economy. We all grow together and we all collapse together.

Wed, 07/20/2011 - 10:17 | 1473542 Urban Roman
Urban Roman's picture

Soon to be Hellenic Handbasket

Wed, 07/20/2011 - 11:47 | 1473951 Commander Cody
Commander Cody's picture

Cute.  I presume they are off the chart.

Wed, 07/20/2011 - 09:28 | 1473395 FastBoat
FastBoat's picture

Recolonized as Southern Germany.  They needed a Mediteranean coast.

Wed, 07/20/2011 - 10:22 | 1473563 kaiserhoff
kaiserhoff's picture

It's a Humpty-Dumpty thang.

Wed, 07/20/2011 - 09:23 | 1473377 americanspirit
americanspirit's picture

They think they're gliding down the highway

But in fact they're slip-sliding away

Wed, 07/20/2011 - 09:33 | 1473418 Oh regional Indian
Oh regional Indian's picture

Ahhhha! Awesome americanspirit!


Wed, 07/20/2011 - 09:47 | 1473447 Tucson Tom
Tucson Tom's picture
We're workin' our jobs, collect our pay
Believe we're gliding down the highway, when in fact we're slip sliding away .How prophetic!

Wed, 07/20/2011 - 09:25 | 1473382 Atomizer
Atomizer's picture


Wed, 07/20/2011 - 09:27 | 1473389 azzhatter
azzhatter's picture

Hey, we ain't Pakistan

Wed, 07/20/2011 - 09:38 | 1473428 Cole Younger
Cole Younger's picture

Pakistan is not Greece. Greece is not Italy. Italy is not Spain. Spain is not Ireland. Ireland is not Portugal. Portugal is not Belgium. Dollars are not Gold.

Wed, 07/20/2011 - 09:28 | 1473393 ZackAttack
ZackAttack's picture

I wonder if these CDSs pay off in dollars. What beautiful irony to have been positioned correctly, only to be paid off in scrip rendered worthless by the very event you were insuring against.

Wed, 07/20/2011 - 09:31 | 1473403 Tyler Durden
Tyler Durden's picture

US CDS are € denominated. Precisely for that reason

Wed, 07/20/2011 - 09:44 | 1473443 Cole Younger
Cole Younger's picture

Interesting. What happens if the EURO collapses before the Dollar? 

Wed, 07/20/2011 - 10:55 | 1473684 trav7777
trav7777's picture

then they will pay a really huge amount of euros

Wed, 07/20/2011 - 10:58 | 1473697 Non Passaran
Non Passaran's picture

Who cares? You'd just get more of them.

Wed, 07/20/2011 - 19:44 | 1475625 StychoKiller
StychoKiller's picture

Quatloos FTW!!

Wed, 07/20/2011 - 09:46 | 1473444 ZeroPower
ZeroPower's picture

Or Quanto if one feels like paying a special price to the MM

Wed, 07/20/2011 - 09:49 | 1473453 Smiddywesson
Smiddywesson's picture

Equally worthless fiat.  The death of a $13 trillion economy and the reserve currency, will leave a big hole in space, sucking in all other large economies, especially China and the EU.

Wed, 07/20/2011 - 09:54 | 1473473 malikai
malikai's picture

I think I'd rather have gold denominated CDS. It is hard to believe that if there was a US default, that the euro would be unaffected. Maybe the price would be more realistic as well, since anyone seriously thinking about a default in the US should probably be thinking about gold anyway. Maybe that will be the CDS of the future.

Wed, 07/20/2011 - 11:01 | 1473726 Non Passaran
Non Passaran's picture

What makes you think you'd actually get paid in gold?

Besides, I don't see how the currency matters here as long as it's a major one - whatever you get paid in the euros you'd be able to convert to gold.

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