Presenting The Plunge In Foreign Interest For US Treasurys

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Sat, 07/09/2011 - 18:55 | 1440345 HungrySeagull
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Hate to say it, but they will raise the Debt Limit, the People will rejoice and we will revisit the issue after Elections are over and done with.

Sat, 07/09/2011 - 19:14 | 1440371 SOLnow
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Raising the debt ceiling solves nothing.  Political drama for the masses.  No QE = no funding at current rates.

Sun, 07/10/2011 - 01:56 | 1441014 TruthInSunshine
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Shorting U.S. Treasuries is going to be the best play on tnotes since going long U.S. Treasuries was...in...oh...about circa 1981 when it was yielding nearly 16% (had one bought a 30 year tnote in 1981 they'd had been able to sell it for a MASSIVE gain by 1985 when new issuances yield 7.5% -

I'll leave it for everyone to do the math on the spread in yields over the remaining 26 years to maturity.

Sun, 07/10/2011 - 02:37 | 1441037 Popo
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Easy solution to all this -- just start paying people's SS payments in Treasuries.   "Here's your cash granny,  you just can't spend it for 30 years."

 

 

Sun, 07/10/2011 - 05:27 | 1441079 Oh regional Indian
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Popo, actualy the elephaunt in the rom with regards to this issue is the fact that the UK is not buying anymore. And how could it. Unless there was some backdoor FED pump.

I remember 3-4 months ago, being shocked by the size and % of UK's purchase.

Tylesr? Isn't that the missing piece here?

Imagine, with all the bad news currently in the UK if the news on the street was that the GBP is backstopping the USD via junk paper purchases. 

ORI

http://aadivaahan.wordpress.com/2011/07/08/july-15th-aug-15th-month-long-window-coming-up-initial-thoughts/

 

Sun, 07/10/2011 - 06:53 | 1441098 richard in norway
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i think the brits have decided to tie the pound to the dollar and will continue to buy T bills. i'm not sure what the payoff is but it must have something to do with the discount window and brit banks

Sun, 07/10/2011 - 10:37 | 1441226 unununium
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You diplay a remarkable belief in the illusions presented.

The GBP and USD are, if not the same currency, two windows into the same corrupt manipulative good-cop bad-cop, teeter-totter system.

Who's to say the Fed and BOE have not issued offsetting 50-year swaps and that each is free to buy as much of the other's sovereign offerings as their ponzi counterfeit oligopolistic selves see fit?

These central banks' credibility is completely shot at this point.

 

Sun, 07/10/2011 - 14:51 | 1441579 TruthInSunshine
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Given that our Dearly Beloved and Benevolent Federal Reserve Non-Bank is a literal offshoot of the Bank of England, no one studying history should find this surprising.

Fractional Reserve Banking that intentionally booms and busts economies for harvest time for the true owners, FTL!

(For the Loss)

Sat, 08/13/2011 - 16:22 | 1557463 slewie the pi-rat
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testing

Sun, 07/10/2011 - 15:58 | 1441773 Oh regional Indian
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Plausible theory unun. And plausibly deniable too.

ORI

Sun, 07/10/2011 - 07:13 | 1441108 Ghordius
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I was also shocked by the UK's size of it.

It must have some relevance.

Sun, 07/10/2011 - 09:20 | 1441167 ViewfromUnderth...
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Middle East and some Chinese buying come through London

Sun, 07/10/2011 - 14:03 | 1441557 TruthInSunshine
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Popo, actualy the elephaunt in the rom with regards to this issue is the fact that the UK is not buying anymore. And how could it. Unless there was some backdoor FED pump.

I remember 3-4 months ago, being shocked by the size and % of UK's purchase.

Tylesr? Isn't that the missing piece here?

Imagine, with all the bad news currently in the UK if the news on the street was that the GBP is backstopping the USD via junk paper purchases. 

ORI

http://aadivaahan.wordpress.com/2011/07/08/july-15th-aug-15th-month-long-window-coming-up-initial-thoughts/

 

Fantastic point, ORI.

Fantastic!

Few people either realize or focus on the fact that the British and Dutch (and the Dutch especially on a proportionate scale - as in amount of total inflows into treasuries as a % of total expenditures) have been two massive buyers of U.S. Treasuries for some time.

Sun, 07/10/2011 - 15:55 | 1441770 Oh regional Indian
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Interesting TIS. The Dutch too. 

The Dutch East India Company. The British East India Company.

Hmmmmmmmm.....

Looks like an old game of pass the parcel crossed with musical chairs and snakes and ladders.

ORI

 

Sat, 07/09/2011 - 23:41 | 1440829 jeff montanye
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i'm going with revisit it sooner.

Sun, 07/10/2011 - 00:36 | 1440920 thunderchief
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They have already raided government pensions.  I say IRA's and 401K's will be next if the  bond market tanks.  They will need a buyer of last resort and those funds are just sitting there with a government fence around them.  They will grab it and put obscene penalties on anyone trying to cash out of them.

Sun, 07/10/2011 - 00:48 | 1440941 No Bid
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Before they did that they would reconsider the federal tax exemption of municipals, something that's already been whispered about, and definitely something to keep an eye on going forward.

 

Sun, 07/10/2011 - 07:25 | 1441118 Tom_333
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It may not be the British buying.I could be purchase through the City.The Brits are broke.Who may then be the endbuyer....the Fed?

Sat, 07/09/2011 - 19:01 | 1440352 max2205
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Kick, can

Sat, 07/09/2011 - 19:43 | 1440395 LetThemEatRand
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Anyone else see that cliff up ahead where the road ends?

Sat, 07/09/2011 - 21:55 | 1440666 papaswamp
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Silliness I say silliness...road is fine...."Jeebs drive faster!"

Sun, 07/10/2011 - 09:37 | 1441182 FEDbuster
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The road is as long as the FED's balance sheet is high.  QE to infinity and beyond!!

Ben Bernanke is "Mr. Creosote"

http://www.youtube.com/watch?v=rXH_12QWWg8

Sun, 07/10/2011 - 01:05 | 1440960 Remo Williams
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Yes we can! (kick the can down the road)

Sat, 07/09/2011 - 19:08 | 1440360 James T. Kirk
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maybe  we can find some strange new world where no man has gone before, and get some outworld suckers to buy this crap 

Sat, 07/09/2011 - 20:29 | 1440466 Fazzie
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  If they did, they would set up an intergalatic monetary fund and the USA middle clas taxpayer would be funding bailouts of alien planets.

Sun, 07/10/2011 - 06:34 | 1441095 Oh regional Indian
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Hah! It probably exists, we just don't know it yet!

ORI

Sat, 07/09/2011 - 20:33 | 1440470 Raymond Reason
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Aye Cap'n.  Live long and prosper. 

Sun, 07/10/2011 - 10:18 | 1441147 Incubus
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Any reasonably intelligent species would wipe us out before we ever got the chance to mess up their civilizations. 

 

Ignorance does not imply innocence.

 

edited for less vulgarity, as I'm feeling pretty upbeat and sociable on this day.

Sun, 07/10/2011 - 08:58 | 1441149 DaveyJones
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"The only question is who will it sell it to?"

small school children. Just stay 1000 ft away from the school. Those sentence enhancements are a bitch

Sun, 07/10/2011 - 14:07 | 1441563 TruthInSunshine
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by James T. Kirk
on Sat, 07/09/2011 - 19:08
#1440360

maybe  we can find some strange new world where no man has gone before, and get some outworld suckers to buy this crap

 

This is the reason for what we have been told is the final shuttle mission. They have packed the shuttle with a quadtrillion in treasury notes and they are being delivered to planet Keynes, which has an extraterrestial population of organic beings known as Krugmanites.

 

Sat, 07/09/2011 - 19:11 | 1440365 zorba THE GREEK
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 I would buy some if the rate were high enough.

Sat, 07/09/2011 - 19:26 | 1440379 malikai
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I think 25% would attract me as a buyer.

Sat, 07/09/2011 - 20:33 | 1440475 FeralSerf
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If they were 25%, gold would be a much better investment.

There would be a reason for the 25%.

Sun, 07/10/2011 - 07:00 | 1441103 malikai
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I just went back to the period 1975 - 1982 with a gold and T-bill rate chart.

Wow, you're right. Stunningly so.

Sun, 07/10/2011 - 10:42 | 1441231 unununium
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High rates did not kill the ramp in gold for a while, but they did kill it eventually.

Folks when gold starts its moon ride, you must sell some on the way up.  Let's not be a bunch of oinkers now.

Sun, 07/10/2011 - 14:08 | 1441564 FeralSerf
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It's different this time.  Haven't you noticed?

Sun, 07/10/2011 - 14:35 | 1441611 malikai
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It is different this time. Money supply is up much higher, gold is up much less, and interest rates are just silly. So how much longer will it go on?

Sun, 07/10/2011 - 09:41 | 1441188 FEDbuster
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Zimbabwe had many 200%+ up days in it's stock market, we will have our day in the sun, too.  Get your DJA100K hats printed now.

Sun, 07/10/2011 - 10:44 | 1441235 unununium
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If I were an uberclass shot-caller, I would do a controlled experiment before pulling the trigger on the BIG swindle.

Maybe Zimbabwe was a petri dish.

Sat, 07/09/2011 - 19:13 | 1440367 Ham Wallet
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Some shithead from MSNBC was on Real Time w/ Bill Maher last night and said investors are piling through the windows of the White House to try and get their hands on US Treasurys.  lol. 

Sat, 07/09/2011 - 19:30 | 1440384 cartonero
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They're looking for the silverware

Sat, 07/09/2011 - 20:34 | 1440476 FeralSerf
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They need to check with the Clintons.

Sun, 07/10/2011 - 00:02 | 1440862 I Got Worms
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These two responses are why I read ZH.

Sun, 07/10/2011 - 00:44 | 1440934 thunderchief
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The best thing to do with US debt is make it only redeemable in the USA and to be used on infastructure projects like high speed rail, subways etc. Let the Chinese come in and build them with their dollars and then give them half ownership in these projects. If they say no then don't pay them shit.

Sun, 07/10/2011 - 00:52 | 1440946 No Bid
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I wish there was some reciprocal to "flag as junk" so that I didn't have to comment to tell you that I 100% agree with your post.

Sun, 07/10/2011 - 01:18 | 1440975 ba dum tiss
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flag as crunk?

Sun, 07/10/2011 - 01:29 | 1440990 logically possible
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I 100% agree. Thumbs up.

Sat, 07/09/2011 - 19:33 | 1440388 lizzy36
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Just an FYI, that shithead doesn't work for MSNBC, he works for US Treasury. And his name is Geithner. ;)

Sat, 07/09/2011 - 20:33 | 1440474 Fazzie
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 Technical distinction only.

Sun, 07/10/2011 - 00:11 | 1440879 Problem Is
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That's Jeethner... As in Wanker Timmay...

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