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Exclusive: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Zero, Flees To Cash - No QE3?
And many thought Bill Gross was only posturing when he said he is getting the hell out of dodge. Based on still to be publicly reported data by Pimco's flagship Total Return Fund, the world's largest bond fund, in the month of January, has taken its bond holdings to zero (and -14% on a Duration Weighted Exposure basis). The offset, not surprisingly, is cash. After sporting $28.6 billion in "government related" securities, TRF dropped to $0.0, while its cash holdings surged from $11.9 billion to a whopping $54.5 billion (based on total TRF holdings of $236.9 billion as of February 28). This is the most cash the flagship fund has ever held, and the lowest amount in Treasury holdings since January 2009 before it was made clear that the Fed was going to adjust QE1 to include Treasurys in addition to Mortgage Backed Securities. PIMCO's Treasury holdings peaked in June 2010 at $147.4 billion and have declined consistently ever since. And while we expected that the spike in MBS holdings (at times on margin) was indicative of an expectation that QE3 would monetize mortgage backed securities, the ongoing decline in that asset class now leads us to believe that Bill Gross is now convinced there will be no QE3 at all, at least based on his just putting his money where his monthly pen is! And if Bill Gross, the most connected person to the upcoming actions by the Fed, believes there is no more quantitative easing, it is really time to get the hell out of dodge in all security classes - bonds, and most certainly, equities.
Note the plunge in Treasury holdings in the chart below (blue line), offset by the surge in cash (dotted pink line). Time to panic.
And when it comes to duration adjusted holdings, something wierd is going on: PIMCO has increased its holdings of securities with a 0-1 duration to 14%, quite possibly the highest ever, and certainly the most to where our records go back. The effective duration on the entire portfolio dropped to 3.89, the lowest since December 2008.
Source:
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Gross was a junior officer in the USN many years ago. He tells a story of almost facing court-martial for running a payday loan shop on his ship. After a few port calls, the enlisted crew owed Bill G. most of their pay. The Captain, facing a possible mutiny, cancelled all the loans and threw Gross in the brig.
and a leg end was born...
he STILL needs to be thrown in the brig
Wait a minute:
Bernacke tells a story of almost facing court-martial for running a payday loan shop at the Federal Reserve. After a few QEs, the taxpayers owed Bernake all of their pay. The government, facing a possible mutiny, cancelled all the loans and threw Bernacke in the brig.
That's an excellent story. Here's another one - Richard Nixon ran the casino on whatever South Pacific island he was stationed on during WW2. He had $40,000 cash when the war ended.
the image is too beautiful - it's just what we need to out the real situation
and it seems bill's in the mood to tweak them a bit they did not respond appropriatelt to his consel
it will only take little - please bill, you can live inland for a while
You gotta know when to hold em' and when to fold em'.......
You gotta know when to hide em' and know when to bury em'.......
This comment is for silver / gold / guns / ammo and or other things they will come to confiscate for a 4th time.
OK, so what happens if the Fed swallows the vast majority of the US debt, then folds and recapitalizes (reignites the fiat machine) as Fed 2.0?
Would the US be prepared to start with a virtually clean slate.
(not on a ship to Mars, so waiting here with the rest of the meek and hoping for the best)
You could, if you like, go live in libya with dubya...and the other oil freaks who love the smell of black magic. But you have to be invited as part of the 'bohemian grove' club.
You've just nailed the end game buddy.
The only comments you forgot to discuss is how do you get from one side of the Grand Canyon to the other?
Hyperinflation is the likely event that will destroy all USD denominated debt... include in this lots of nasty social unrest... then within 18 to 24 months the emergence of a new world order with the major powers resetting... and the grand cycle continues.
Agreed: Nailed it!!!!
It's been the plan all along. This is what the "Committee to Save the World" (remember?) was all about: The biggest intel . . . maybe counter-intel . . . maybe counter-counter-intel . . . operation in the history of the world.
As in, how to pull off the mercy-killing of a dying FRN ponzi without triggering a mass die-off or turning our sovereignty over to China or the European Soviet (EU).
Fed will absorb what it created, then refashion itself. The imagery in my head since 2008ish is that of the Cheshire Cat. (WilliamBanzai can you do something with that?) Just one day poof! Gone! And then poof! It's back!
You've got to admit it's brilliant, and much better than the way the banksters USED to do it (Rothschild Repo Man, etc.). The brilliantly evilish derivatives mess ensured it couldn't be done that old way.
Privateers or pirate-heroes? I've been holding my fire for years, just like the Road To Roota guy, a kindred spirit I found on the net not long ago.
When "it" finally happens it's going to take people's breath away, IMHO.
Having spent the last two years stuffing this, every other bank and every other money market fund with cash through one way Fed trades to continue the illusion that everyone's pension fund is as safe as the stress tested financial system I hardly think Bernanke will allow the worlds biggest bond fund to crater on new and not unexpected treasury losses.
To have these losses suffered by pension funds which invest in this fund would melt down stock markets and undo the last two years hard work ramping the S&P as companies increased pension funding provisions to cover these losses. I wouldn't be surprised if Bernanke had phoned Gross and instructed him to sell all his treasury holdings.
These losses are going to tax payers. We should by now know how the system works.
and that's why rates are rising as Ben buys massive amounts daily.
Cause Bill Gross has been selling massive amounts daily.
At what price freedom...? ask the Mao Mao of Kenya. They fathered Obama.
Look the runup in bonds from QE1-2 was a gift from heaven to Pimco. Gross is just protecting his windfall and signaling to the Fed what's ahead if they don't implement QE3.
dancing on his gross blue suede shoes...one for the money, two for the show...
Well, there's s plenty of liquidity
in the Potomac River watershed, anyway ....
http://water.weather.gov/ahps2/hydrograph.php?wfo=lwx&gage=porm2
I had t find River Rd. to find Falls Rd, to know where the hell that was... I was lost for a minute.
Excellent analysis.
it may be the bond market is an anachronism, that all paper will be notes, the Bernank will orphan all existing bonds.when push comes to shove in these matters it seems like its the bond holders who get the worst end. Best way to avoid that is to freeze their assets, for their own protection of course.
This is so exciting! Where will my dollars go? Oh, wait, I have none. Just free library internets. I'm here fooling them; when they look away, it's off to the dumpster out back of the higgedly piggedly.
Ben is just tanking the markets before implementing QE3, which will be his excuse. Get your cash ready, buy on the big dip. Fat pitch coming, wait for it.
oooh, this bawank guy is starting to wube me the wong way!
Actually,I thought the language of QEII left the June date rather open ended, so that it could be unofficially extended...which means the FED has to cook up some new shell game to hide it's slight of hand without formally declaring QEIII.
30Y
Bear Flag on the Long Bond?
http://www.zerohedge.com/forum/99er-charts-0
Question: Who is the tenth largest user of oil in the world? That would be the US military. In June/July of 08' the price of crude hit the $150 mark, and placed quite a stress on economies and Large users of oil. We had a deflationary episode which when viewed from different perspective appears "created". Destabilizing the world is not an easy thing to do when self preservation and continued dominance is the goal. The US/UK banking system MUST maintain control at all costs. What I believe will happen is first the telegraph (announcement by the Bernank, that QEII will end.), and then IF desired results of another deflationary episode are not achieved, QE will "temporarily cease. We all know what will happen when Bernank stops buying bonds. The desired result will be the same as when Green-expand would drain liquidity and raise rates correct? The difference being today rates can go no lower....at least today's rates. If QE is withdrawn rates will rise. The market will drop. Commodities will fall.(Oil) This will create the atmosphere for QEIII and Money printing that will make the prior pale in comparison.
.
(d)
This might be the tell tale sign that QE3 will not be announced immidiately, but, certainly does not mean that QE3 isn't coming. We all know without QE, the treasury and stock market will likely crash and your friendly neiborhood federal reserve chairman hates those deflationary tendencies. Be ready for a gap between QE2 and QE3 of about 2-12 weeks. Doubt it will be any shorter than that. Gross is just preparing himself for the gap and the ability to load up just before everyone else hears the pre-announcment for QE3.
My view, expressed in following simple February 6th DJIA and Oil charts for 2011-2012. USA will have to tighten soon, leading to second recession in q4 2011-q1 2012 and all 2012-2013. Except, oil will not go down, but up, because of continuing supply disruptions due to widening political instability in all ( except Norway) oil exporter countries. The inflation will be not there, so other commodities may well take a pause. But NOT oil. Recession in the USA starting in q1 2012 (and elsewhere) will only make a small dip in oil prices ( down to 2012 April Brent 135-150 USD/bbl).
http://saposjoint.net/Forum/download/file.php?id=2608
http://saposjoint.net/Forum/download/file.php?id=2609
Just two charts, clear picture. The punctuated supply disruption events multiplies by reduced investment in extraction capacity is responsible for swings in oil price.
If there is correlation between DJIA change and GDP growth, the coming USA recession in q1 2012 and beyond will be minus 2%-4% quarter on quarter annually.
USD will stay strong, and military protection in general and especially of Oil resources will be bought in the USD. There will be no USD hyperinflation, but tightening, thanks to Oil prices taking out energy of QE xxx and further fiscal deficits as they will only pay for Oil, not growth.
This is an endgame for monetary and fiscal easing.
As it does not have any argument left in it. Which it never had, but now everyone sees it.
Sequential move game. Gross is making the first move over QE3 or one of the first move. He's sending a message to the Bernak, "This is what will happen if you don’t QE3." Mutually assured destruction is the game currently except Gross controls the outcome this way because he made the move first.
This means, without a doubt, that QE ends in June. Greenspan is on the Pimco board. Neil Kashkari works for Gross. They know that QE will not be extended in June, and are positioning for a drop in bond prices. Gross is selling at the top.
It does not mean that QE3 won't be implemented eventually, but it won't be in June. Ignore this fact at your peril.
The PDs are required to buy the unsold Ts no? (someone please correct me if I am wrong on this) So all that equity gunning is over. Every hedge fund in the world is buying SPX puts right now.
Normally this would be a rush to the bosom of a safe haven, but the haven (UST) is about to lose 70% of its demand. If you are the big money, where do you run to?
Equities? God no. UST? Some as a reflex, but not all in. Prices are falling. Cash? Not in an oil shock. Other currencies? Yuan maybe. All the others suck. PMs? Some. End of QE means dollar no longer being actively debased, but at same time, its a small market, and some of the safe haven bid is going there...
Many questions, much uncertainty. But QE stops in June, at least for a while.
Great exercise in thinking - from sign post to sign post. Thanks.
if there is no demand for bonds, where the hell does the money go?
If not equities, where? "Cash"? There's no such thing anymore...it's all swept into MMs.
Solar panels? Windmills? Farm land? In other words, we sooner or later all may be individually on our own.
Got into MM's with retirement late 2007, but alas, in this day and age, you can melt away from inflation in MMs or play Russian Roulette with equities and risk getting blown away.
Where does it go.... Thats easy.
Poof! And its gone....
We are going to default on our treasury debt.
This is why Gross is getting out.
We are going to liquidate it.
Smartest move we could make.
I'll take a stab at this for fun, but I don't know crap. The fed will not do anymore sl(easing) because with oil going up, they know it will do nothing to start up the economy. Bill knows they are ditching this strategy to let all commodities crash in a power deflation. Oil gets caught up in it too. Then they start it up again later, and Chris M ends up kind of right.
The Fed is spinning its wheels. They get it. They gotta stop and get some traction (let some prices fall) and take the hit, and try to restart with QE fuel later.
Here is real fun.
BILL IS BUYING GOLD AND SILVER AH HA HA HA HA HA HA HA HA!!!!!!!!
Isn't this the next phase for Bill? Yes.
No more calls from Raj. Don't know what to do. Go to all cash. Oh wait - maybe even all cash won't save me. PIMPM.
how can this still not be on bberg?
It is. As reported on Zero Hedge... F'in bbg can come up with this on their own... they have to rely on this site.
We are all doomed. Sell everything.
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aSOvYUoyYiE0&pos=4
the reality RIGHT NOW of the bond market is that there is no bid for USTs at these prices.
The other reality is that the USG's duration curve is so front-loaded that they cannot roll paper to fund at these rates without the Fed's bid.
Another reality is that interest expense is $400B, or 1/5 of revenues, and rising. Let's suppose rates double...what does everyone think this will do to interest expense as the USG tries to roll shorter duration paper now suddenly at twice the interest rate? The percentage of revenues going to interest very quickly explodes.
It is as I've said repeatedly about the debtmoney system and was explaining to my accountant yesterday- the compound interest component requires growth and if growth does not come, the interest very quickly begins to consume everything.
IF the deficit were cut by 75%, we STILL face this problem with interest. Supposing the government were to eliminate the deficit, there is no reason to expect rates to go below where they are now; they were HIGHER in the "surplus" years and there would remain a question of basic solvency with an interest payment suddenly at 20% of budget. Rates would still climb and interest expense would as well. Even a 50% increase in average rates puts us near 30% of current revenues going to interest.
Japan has been QEing for 20 years; this is the only mechanism central banks know to prevent the deflation cascade. The reserve currency nature of the FRN is strangling the ability to devalue, as everyone is pegged to the FRN via the reserve currency mechanism. THIS is the problem.
I agree, but I'd put it even more simply; legal tender laws.
Repeal them and appreciate sound money!
Quite right , the question is , can they do the rope-a-dope one more time (or more?) Pull QE and youll see the bear market in risk assets resume. There will not be immediate armageddon and that dumb money has to go somewhere. my bet is into US Govvies. investors are sheep with short memories. easy way to finance the govn for another year.
2012 is still a bit too far. They'll need to blame the much needed recession from stopping the QE koolaid on someone else.
Pimco expects to use cash to buy at the dip when stocks go down after QE2 ends and then is going to sell into a "risk on" trade when QE3 is announced because the economy is weak going into an election year.
It's amazing how oil is up over 20% in the past month on the unrest in the middle east, yet the S&P is not even down 2% off its most recent peak. The manipulation is so blatant. Given how the market had run up, this oil increase alone should have resulted in a minimum 5% S&P correction.
Look at the market first half 2008. 110 was the real tipping point on WTI when the correlation with stocks broke down.
Stocks didnt start to come apart in earnest until oil broke 110 and once oil had topped at 147 the S+P was well on its way lower. If oil gets much higher the ECB will pull the same card they did in 08 and hike and then its on like Donkey Kong.
Let's not forget that we are living in fascist countries.
The politicians & corporate owners are in bed together for their mutual benefit, not ours.
Due to this action others will REACT a certain way. They are moving markets with this.
hat tip to MachoMan- ambiguity is what keeps the charade moving
This is why ZH is now my first read every day.
So what exactly is 'cash' these days at Pimco?
Twenties and Fifties?
http://noir.bloomberg.com/apps/news?pid=20601087&sid=aSOvYUoyYiE0&pos=4
Nicely done, ZH.
*
Now CNBC qouting ZH!
CNBC:
Getty Images Bill Gross of PIMCOPIMCO has dumped all of its US Treasury bond exposure in its flagship Total Return Fund, according to a report from the widely-read blog ZeroHedge.
It's unclear what the source of ZeroHedge's information is. So exercise some cautionary skepticism about the report.
We are so fucked... the shills in mainstream media can no longer process an independent thought and have to come here for insight.
Let me just say to our BBG and CNBC readers/financial journalists. FUCK YOU!! You are part of the problem.
All these TBTF BTFD Cheerleaders are gonna get treated like cheerleaders... rufinol induced gang fucked after the prom.
I repeat. FUCK YOU CNBC!!!
I'll double down on the FUCK YOU CNBC. And if Lies-Man is lurking , an extra special fuck you for being such a moron.
Does "widely read blog ZeroHedge" sound better than "kind of a global hub for catastrophists"? LOL
I don't know about that.
"Kind of a global hub for catastrophists" has a nice ring to it.
Zero Hedge - Kind of a global hub for catastrophists.
On a long enough time line the probability of CNBC driving the sheep off the cliff reverts to 1.
CNBC can kiss my ample ass.
It is unclear to me where that manic gnome (aka Cramer) gets most of his information. However, i skip skepticism, and move straight to mocking. Getting back to zero indeed.
Tyler Durden is the Dude.
I love the irony of the fact that the other headline on BBG next to the Zero Hedge article is this headline:
"Birinyi Buys as Biggest Bull Rally Since ‘55 Hits Third Year"
Now that's some good ironing.
zerohedge is just a "monoculture" of conspiracy nuts lol
===>*adjusts tin foil hat*<===, is my hat on straight?
Congrats Tyler!
You made it to the big leagues!
http://www.cnbc.com/id/41988321
Double down on those 3x tripple bear super levered inverse SPY etf's. The shit is about to hit the fan.
Nah, Tyler is the big league, the short bus media is just beginning to realize who the top dog is. After almost two years of reading Tyler's articles, and let's not forget the blistering pace he maintains on a daily basis, you know he is teaching them an object lesson on how it's done. Take a bird's eye view and tell it like it is. Do not insult your reader's intelligence. Don't be anyone's butt kisser. etc etc. This is where the news is. Thanks Tyler...don't ever forget what makes you you.
Hey sweet Lady! You beat me to it!
Hey! Went back to work, need more shiny, need more food, duct tape, etc.etc. Got gas this weekend too. Sometimes I resent how this site has eliminated the normalcy bias. I wish I could go back to salivating over shoes! We may not qualify as "virgins" with oil for our lamps, but oil we will have.
Erin Burnett is too busy being bukkake'd by the FOMC to report news that matter...
"Today on Wall Street, stocks are rallying on heavy trading early in the session on the large sell off in west texas crude. WTI futures were down 4 cents. Erin?
-Gurgle, gurgle, bubble.
And in other news, a massive comet has been spotted by NASA. Researchers say it will make a direct impact approximately at the intersection of Nassau and Maiden Lane in lower Manhattan, ending all life on this planet. Over to you Cramer..
-BUY, BUY, BUY!!!!"
Tyler, is the Man, <cnbc> ...in his best Samuel L. Jackson Imitation, oh!, I'm sorry, did I break your concentration?
what does Tyler Durden look like?, say what again,
does he look like a biatch?
Shillary Cliton recently said that the U.S. is losing the information battle to Al Jazeera, RT (Russia Today) and other international media organizations. Clearly real journalism is beating out propaganda.
I mean you no hostility. They don't rank as "Big Leagues." Give them nothing. The cutting edge is right here. They are not as mired in commercial interests as those other places. Tyler(s) can fuck up like anybody. They are, however NO ONE'S INFOMMERCIAL. This is where journalism is. The mainstream media are Zombies, still walking and feeding and don't know they are dead yet.
I was just fuckin' around.
CNBC is a shit stain.
It's like a grocery store tabloid; entertainment purposes only.
Gross's comments from a few weeks back.
http://seekingalpha.com/article/251064-pimco-s-battle-call-to-bond-vigilantes
Way to go Tyler Durden. Now CNBC and Bloomberg both report "according Zero Hedge"...
While that is good news in some ways just wait for the flood of CNBS, FAUX and Bloomturd trolls that rush to ZH now. If we thought some of the trolls here were bad enough just wait.
World military budget is 1.1 trillion. US accounts for 650 billion. Ha Ha
http://dawnwires.com/investment-news/world-defence-budget-reaches-1-1-trillion-us-accounts-for-600-billion/
TD, way to go! You also made Time's list of 25 best financial blogs.
Unfortunately (at least for me) Time magazine has no credibility.
The Chairsatan was Times man of the year. I also remember when almost every issue had Obama on the front of it and sucking his knob. I wanted to vomit going into the grocery store and having to see that shit.
PIMCO last year decidied to open an equity fund called Pathfinder. It's number 1 holding: Gold.
Tyler, you seemed to have opened a hornet's nest here. Under the cover of the 1:00PM auction announcement, and about the time the MSM was catching on, the TLT is spiking. WTF.
So sell Gold?
Since they are going to take the economy down for another harvest.
I am almost totally broke after working all summer last year to buy gold. I WANT TO PROTECT MY MOM, DAD AND BABY SISTER!
Before I die, I don't want to leave them in the poor house.
I don't know how you people can deal with this sh*t. Day in/ Day out.
Very unhealthy.
My liver has been destroyed reading these blogs.
Honestly, I cannot take the doom much longer! I am running out of rope.
Just keep piling into the PMs and you'll be fine
Hope? What's that?
Forget your PM's. Spam and bullets are the only store of value now. Good ole spam.
And 7.62 NATO rounds are trading at the steepest discount to their intrinsic value. I'm long the 7.62 and short the front end of the curve in the .22 to .220 range. Add the spam, and my portfolio has what I call a doomsday barbell with and "end of the world" flattener position. What zero hedge... I'm totally hedged and ready to subsist entirely on dead sheep and black swans.
Bring it Bernank!!
Do your parents not work? Perhaps you could convince them to buy some PMs and stores for a Kondratiev Winter.
Incidentally reality is not doom. Doom is sitting on a cruise ship in the Carribbean and saying there will be a hurricane, iceberg, water funnel, engine failure without any logical reason.
Reality is standing on the bow of the Titanic and yelling "Iceberg to Starboard" and being the first to get several lifejackets while moving you and your family to a lifeboat.
As has been pointed out on ZH some people realize that a normalcy bias (refusing to believe things will change - and quite likely for the worse) is deadly and pretending that the normal economic cycles, that include depressions, won't happen is a fantasy.
Look into Aespo's fable of the Ant and the Grasshopper. Is the ant a doomer?
I would not sell any PM's I think they are all in it together and are like to say anything to make people believe no QE3 is coming, but it is whether they formally announce it or not. They cheat and steal all the time they'll do whatever they have to behind the scenes
Move on guys. There's nothing to see here.
Only our futures!
Are you ready for death camps? They are coming! Obamacare was just a wet blanket. Did you read Zeik Emmanuel? They are serious, folks.
I hope you are ready. These people really believe this shit.
Aren't you aware that America went bankrupt in the 1930s? The American people were plegged as colleteral.
Nothing is different this time around.
I would rather take myself out then let the banks win. ___ help us all!
it noticed today the Home Depot is selling out of wheelbarrows
Being a retired nurse this commentary reminds me of the dialogue between doctors describing clinical details of a terminally ill cancer patient.
Goodbye Federal Reserve/IMF/World Bank and the United States Federal Corporation.
Godspeed on your demise.
Life, Liberty, and the pursuit of Happiness.
http://republicfortheunitedstates.org
http://gsfsystem.ch
I notice today that the Home Depot is selling out of wheelbarrows
+++++++++++++++++++++++++++++++++++++++++++++++++++
http://www.webofdebt.com/articles/hyperinflation.php
After all they've done for him. What a bitch. I know some up and coming gold juniors if your interested, Bill?
QE3 is a given. However not until the half-time show is done.
Bernanke is going to allow the engines to stall one more time,
and the US is going to free fall again. Pension plans will go
into the red, retirement accounts will deflate and he will keep
it this way until people show up in the streets with signs, "QE
forever!, King Ben I forever!".
Who run bartertown?....
Bill Gross is wise man,but you are who posting here is doomed,because i counted over 50posts and asked to vote for FED existence in my blog:
http://trendybull777.blog.com/2011/02/21/hello-world/
But it was just 3 brave people to respond,which meaning that all of you is sartisfied with current environment and you probably forgot that today Jasmin reolutions based on internet first by FED elite to screw nations,I calling for thoose who wish FED abolished to vote or to leave comments at least,the thing which is world lags today is trust between us!!!
Go and vote,World should not affaid of monster eating into our wealth on everyday basic
I don't understand why Gross' actions mean that there will not be a QE3 and QE4 etc.?
Several other smart investors including Felix Zulauf think there will be QE 34 eventually
http://fundmanagernews.com/tag/felix-zulauf
I'm not counting on the summer QE pause just yet. What, suddenly Obama and Bernanke just admit their game is up, time to let those dominos tumble? Not so easily.
Perhaps QE will turn out to be like a financial narcotic. Ben B. used QE to add some liquidity into the system and everything felt good. Interest rates went down (for short duration debt at least) and the equity markets soared. Like a beginning cigarette smoker or drug addict, Ben told himself that he could stop QE and even reverse it (quantative tightening) any time inflation started to become a problem.
Now we are starting to see early signs of inflation, particularly in the commodities markets, and it probably is time to stop if the Fed is really concerned with maintaining low inflation. So I think there will not be an immediate QE3. I am somewhat afraid of what will happen. Perhaps it could mean that interest rates would spike and there might be carnage in the stock market. These are like withdrawal symptoms and if they are severe enough, Ben B. might just discover that he has become a QE addict.
The real question is will the FED stop QE2 before june . Bill had another 3 months before the end of QE2 .
Geithner a few weeks back (I know he is a retard ) said something like " If oil prices get out of control CB's have a way of dealing with that ."
Trichet just last week " we will raise rates by april ."
Just today 2 other EU cb officials stated " Rate hike may occur before ."
This may be a crash and burn ,where Bernanke and pals already knew they were going to do this months before "revolutions" in the ME took place .
watch commodities close to see who is getting in on the short side of trades or who already is may be an indication of what is about to happen . Bill Gross in ALL Cash means he is waiting for some serious buying opportunities in the very near future and not necessarily June but maybe just maybe the weekend after march 11 ?
Boy, I must be really stoopid - somebody help me out. this was posted 9 am; market opens at 9:30, TLT (my unsophisticated indicator) jumps up, and spikes on huge volume after 10year auction at 1pm. So Gross sez "sell" and everybody BUYS......... WTF?
Zerohedge got a shout-out in Susanne Walker's "Pimco’s Gross Eliminates Government Debt From Total Return Fund" on bberg...
...Gross last month increased holdings of emerging-market debt to 10 percent, the highest since October, from 9 percent in
January. He cut holdings of mortgage securities to 34 percent from 42 percent in January.
The Zero Hedge website first reported the change in assets today. Pimco doesn’t comment on changes in holdings.
Treasuries returned 5.9 percent in 2010, according to Bank of America Merrill Lynch Indexes. The securities lost 0.6 percent so far this year...
"Purging is at last at hand. Day of Doom is here. All that is evil, all their allies; your bankers, your leaders, those who would call themselves your judges; those who have lied and corrupted the Earth, they shall all be cleansed." -- Thulsa Doom
QE3 has to happen... the USG will still be running a cash deficit of $100B/month and there are almost no new takers for its additional debt (as opposed to current holders rolling it over).
There may be a pause to create a sense of crisis or necessity, but absent the USG cutting several hundred billion $$$ out of its budget, the markets won't buy the necessary bonds, so the Fed will have to.
Further setting up the hyperinflation down the road.
Bill Gross has been saying alot and even now it seems he said the most damning. I think that he knows that the market is getting ready for a massive sell off and the US economy won't recover in his lifetime. I truly think that he was told that promises that he did for the govt. (buying bonds even if they are skunk) and finding out that it won't be reciprocated to him (make him whole) is why he's running around in doom mode.
Bernanke could very well pull a Volker and halt QE. It was done before, and come one, no one really believes the players were any different back then? Why would Bernanke and crew willingly go along with a plan that will cause their destruction, via inflation of commodities, e.g. JP Morgan and its bleeding silver shorts?
If QE was halted, banks would fail, unemployment would skyrocket, housing would crash, government would be in default, etc. but certain banking/financial players would survive. Their losses are on the Fed now. Politicians and the Fed would be thrown under the bus, as well as much of Wall Street, but the current system still would have some chance of surviving this event, compared to pursuing hyperinflation.
By the way, does this mean sell silver?
Higher interest rates have a direct coorespondance to declines in metal nominal prices. People are gettting a yield and fake credit get less accessible. Though PIMCO could be trying to force the FED into higher longterm rates. Shortterm ponzi rollover can't be touched
>> By the way, does this mean sell silver?
Have we reached anywhere close to
the top of the silver bubble destined
to happen?
Keep in mind what you are reading is stale. The frontrunners already know what is going to happen 4 steps from Qe3.
I suspect PImCO will be back- after the PPT lets the market drop to 11,000 or10k to show Congress who is keeping the ponzi running.
They will ask fora higher debt ceiling and get it. They already know they are going to buy assets, get us in austerity and run the entire system. As soon as China blows up
Pimco cuts US Treasuries holdings to zero, 9 March 2011, by Dan McCrum and Michael Mackenzie in New York (The Financial Times) http://www.ft.com/cms/s/0/d7b68a9a-4a7f-11e0-82ab-00144feab49a.html
Excerpt:
After slashing its government- related holdings to zero, Pimco Total Return’s assets are primarily in US mortgages, corporate bonds, high yield and emerging market debt.
The fund holds 23% of its assets in net cash equivalents, defined as any instrument that has a low sensitivity to movements in interest rates.
The move was first reported by the Zero Hedge website. :-)
Help me understand why them liquidating all of
their holdings means they don't think QE3 will
happen?
Aren't people leaving bonds, BECAUSE QEs are
happening, and devaluing the dollar, thus
making it pointless to own bonds?
Correct my logic, please.
This was later sold on the open market for use in commercial reactors throughout the US. It is a great way to eliminate the proliferation risk associated with decaying weapons stockpiles. I believe the US has been actively doing this as well for her own retired stockpile, but I don't have any references.
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It was the fault of the Japanese for allowing such a reactor to be built in that location without additional safety measures being required. That's the real story here. That and the shitty enforcement of already lax safety standards.
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Interesting to read all the new responses, thanks for all the current news and updates. Hope to read more very soon.
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Everyone lives in a fantasy... those who live in it and those of us waiting for the day that changes.
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