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Second Biggest Weekly Drop Ever In Treasurys Held In The Fed's Custodial Account As Foreigners Dump

Tyler Durden's picture




 

There was one truly interesting observation in this week's Fed balance sheet update: not that the actual balance sheet hit a new all time record (which it did at $2.779 trillion), or that the Fed added another $24 billion in Treasurys to its balance sheet, or that total reserves hit a new all time record, increasing by $53 billion to $1.59 trillion. No. The biggest surprise was that in the just ended week, Treasury securities held in custodial accounts at the Fed, considered by some the best real-time representation of foreign holdings of US Treasurys considering that the TIC update is not only wildly inaccurate in its monthly update, but is also 3 months delayed, dropped by the largest amount in 4 years. From a total of $2.704 trillion, USTs held in custodial accounts declined by $18.7 billion to $2.685 billion. This is the second largest decline in history, only topped by the $22.1 billion in the week of August 15, 2007 which is the week that followed the great quant crash of 2007 that wiped out, among others, Goldman Alpha. This observation is in stark contrast to the recent record strength of bond issuance, after both the 5 and 7 Years auctions posted record Bid to Cover investor interest.

One explanation is that while foreign investors are aggressively buying up the belly of the curve, they are even more aggressively selling the other parts of the curve, namely both the short (sub 2 Year) and the Long (10-30 Year). Another explanation is that the weekly change in Custodial data is largely noise and has no bearing on total foreign holdings of debt, which however we would largely discount. Another question is whether the large outflow from bonds is a consequences to recent market volatility, or is the basis for one: i.e., will the money be used to purchase stocks, or, if as China is posturing, is this merely capital leaving the US and entering Europe. Lastly, the nearly $20 billion in USDs likely will have to be converted to another FX denomination: should any notably USD weakness be observed in the next several days, this could well be a reason.

A chart of total Custodial Treasury holdings:

And old faithful: the neverending weekly "record" Fed balance sheet chart:

 

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Thu, 05/26/2011 - 20:54 | 1315087 Long-John-Silver
Long-John-Silver's picture

Beans, Bullets, and Bullion Bitchez!

Thu, 05/26/2011 - 21:14 | 1315139 Michael Victory
Michael Victory's picture

gold, guns & getaways.

fix it later.

 

Fri, 05/27/2011 - 01:08 | 1315607 DoChenRollingBearing
DoChenRollingBearing's picture

+++++ Michael Victory!

I will find a way to put the Debt Clock into my own blog, BRAVO!

Completely agree with the sentiment to prepare...  In case the SHTF and then we have our TEOTWAWKI...  Discussed at my blog too.

I wish I were better prepared, but I am working on it.

Fri, 05/27/2011 - 02:02 | 1315627 Transformer
Transformer's picture

What is TEOTWAWKI?

 

Never mind.

Fri, 05/27/2011 - 02:05 | 1315655 Larry Darrell
Larry Darrell's picture

We really like our acronyms around here..........even the really long ones

TEOTWAWKI = The End Of The World As We Know It

 

 

Fri, 05/27/2011 - 08:46 | 1315976 Sakka
Sakka's picture

Gold, Guns, Gas, Grains; check out AAOOBFoods.com for the best long term food storage options on the web, imho.

Fri, 05/27/2011 - 01:44 | 1315640 camaro68ss
camaro68ss's picture

booz, bitches, and rope swings

Thu, 05/26/2011 - 21:20 | 1315155 knowless
Thu, 05/26/2011 - 23:05 | 1315417 JW n FL
JW n FL's picture

http://www.youtube.com/watch?v=fkuOAY-S6OY

 

I got a silver dollar for every scalp and "W" sticker ya bring me!

 

Just kidding!

 

I wonder if my silver and gold is worth more than the paper market says???

 

"O" thats right! I already know that answer!

Fri, 05/27/2011 - 01:02 | 1315599 DoChenRollingBearing
DoChenRollingBearing's picture

JW and other friends of the Bearing are welcome to email me at gmail to get a link to my new blog. I have gotten some knocks for putting out the word here at ZH, but I now have gold price widgets and putting in music, etc. to make my readers have a better experience (all self learned). Drop the 55 yr old bearing buyer a line and prove who you are and that you will be nice (= not spread my name or link here at ZH). I make ZH-ers go through this because of the secretive nature of ZH and the trolls found here within.  23 ZH-ers (so far) can't be wrong!

Fri, 05/27/2011 - 06:23 | 1315767 laughing_swordfish
laughing_swordfish's picture

DCRB:

How does one contact you?

Fri, 05/27/2011 - 11:39 | 1316871 DoChenRollingBearing
DoChenRollingBearing's picture

24 have so far.  My name at gmail, not rocket science.  If you do not get through, I will look you up and you can try again.

Thu, 05/26/2011 - 22:21 | 1315310 Janice
Janice's picture

Sausage, Smith & Wesson and Silver Slutz!

Fri, 05/27/2011 - 02:18 | 1315671 bigelkhorn
bigelkhorn's picture

Anyone notice some real weird action in bonds over the last few weeks. Hmmmmm. 

Below is a video for those people who like trading on the market.

=> http://www.youtube.com/watch?v=pPlY12-hQLw

This video cracked me up LOL.  FUNNY CHIT... LOL. 

Fri, 05/27/2011 - 07:12 | 1315786 breezer1
breezer1's picture

yahoo is looking for spammers.

Fri, 05/27/2011 - 06:05 | 1315758 Weisbrot
Weisbrot's picture

could be Japanese industrialists re-pating some funds for repairs & rebuilds

could be some MENA folks doing the same

or perhaps its just some player selling in to a dollar rally

since I dont get invited to the G8 or similar manipulation parties I dont know

do you....................... ?

 

Thu, 05/26/2011 - 20:58 | 1315089 Yen Cross
Yen Cross's picture

  I'm fixated with that treasury intermix.

Thu, 05/26/2011 - 20:56 | 1315095 wombats
wombats's picture

What is the significance of this?

Thu, 05/26/2011 - 21:00 | 1315110 Yen Cross
Yen Cross's picture

Metals, Bonds, Equities!

Thu, 05/26/2011 - 21:03 | 1315118 Popo
Popo's picture

The significance is that we're fucked.   But the more interesting question is:  How will we be fucked?

Will rates be forced up?  

Or will the solution be buy more of our own shit, and compound the problem?

The problem, from an investment standpoint is that each of those two outcomes is possible.  And each require different, opposing strategies to defend oneself.

We live in interesting times.   Or at least, we will very shortly.

 

 

Thu, 05/26/2011 - 21:53 | 1315239 tired1
tired1's picture

I watch 'experts' on Fox, CNBC and other shows where they warn that if the US doesn't mend its' ways that China will no longer buy bonds. No one mentions the Fed's actions. I mean: why doesn't Cavuto (whom I generally like) pick up on this crap?

Thu, 05/26/2011 - 22:13 | 1315289 dark pools of soros
dark pools of soros's picture

I'll post this one more time (since the first time was on a loony thread) just to see if it sparks any other ideas.  screw End the Fed.. let's Trick the Fed

 

-
How about fooling the FED and its private banks to keep taking on more and more of America's debt as China, etc gets out of the picture and then when the FED nearly has all of it and thinks it is time to show its leverage, we force a 20 cents on the dollar haircut to eliminate it all?

Then coin new money and give the FED et all a 1/1000 exchange rate of their fiat to the new currency to spite the fuckers...

As long as a side deal with the BRICs is in place we can watch Europe go into hyperinflation flames with all the western central bankers and still be able to have decent price oil since the military would still continue and not be confronted by the Eastern powers...

How else to get out of the grip?

-

Thu, 05/26/2011 - 22:41 | 1315360 Fedophile
Fedophile's picture

Brilliant.

Too bad it will never happen without revolution.

Thu, 05/26/2011 - 23:09 | 1315432 JW n FL
JW n FL's picture

Thats not true.. look at Kennedy! he killed the FED and the FED Debt and moved us to a Silver Standard!

 

"O" thats right! someone shot him from behind and made him move forward backward and side to side.. from behind.. with a heavy weight .308 (6.5) custom round.. physics was never my strong suit.. but thats seems funny to me.

 

Kinda like those perfect demo buildings.. I must be crazy.. me and 1,000 plus engineers!

Fri, 05/27/2011 - 01:02 | 1315598 tired1
tired1's picture

"When the Devil eats you there's only one way out." - Russian saying

Fri, 05/27/2011 - 06:12 | 1315761 Weisbrot
Weisbrot's picture

 

are you suggesting that we nationalize the fed and erase the digital debt?

 

 

Thu, 05/26/2011 - 22:21 | 1315302 augie
augie's picture

In the off chance you are not being sarcastic, I offer this estimation. Cavuto and anyone else on TV who wants to remain employed learns to refrain from speaking out against their masters. If you have any suspicion, as i assume you do by the nature of your question, that the sacred "fox" (news corp), CNBC (GE), CNN (time warner?) has interests in suppressing the truth, I would advise listening to that suspicion and follow it to its conclusion. 

 

 

Thu, 05/26/2011 - 23:31 | 1315461 tired1
tired1's picture

I was being honest. I most also conclude that even at my age (mid fifties) I am far more nieve than I suspected. I've been on ZH for a while now and it's given me a greater perspective. All this left vs right, convervative vs liberal, east vs west - mostly crap. There may be valid disputes between groups, but it seems clear that the power of control over the flow of debt will forever keeps the flames of war burning. Following the money trail has made many pieces of history fall into place.

Well, thanks for another dose of reality.

Fri, 05/27/2011 - 08:50 | 1315970 augie
augie's picture

If only i could express the hope and joy i feel when I read posts like this. Recognition of truth is awe inspring. I wish you a safe and pleasant memorial day.

Fri, 05/27/2011 - 11:52 | 1316919 DoChenRollingBearing
DoChenRollingBearing's picture

Yeah, I hear you at 55 too.  Bush had 6 years of R control in Congress.  I've had enough too.

That's why I enlisted as a Space Cadet in the Tinfoil Hat Brigade 2 - 3 weeks ago.  I could no longer take the lies (the straw was hiding the evidence of killing bin Laden).

Can any of my Superiors here give me any suggestions as to which batallion to join?  Things look pretty disorganized around here in the THB!  I am considering the below two:

-- The Space Batallion (looks fun)

-- The Lunatic Fringe Batallion (also promising)

I will put up an article soon at my new blog (now w/ widgets) re the Tinfoil Hat Brigade.  Want to see it?  Contact me, either by thinking how to do it (hint: look around this thread or just mail me at gmail dot com).

Thu, 05/26/2011 - 23:47 | 1315494 vote_libertaria...
vote_libertarian_party's picture

I here yu brother.  It kills me when these TV financial experts say "...with China buying x amount of Treasuries..."

 

HEEEELLLOOOO....China stopped buying last fall.  It is 100% pure Fed heroin now dudes.

Fri, 05/27/2011 - 00:22 | 1315541 tired1
tired1's picture

How can one track the possesion of bonds. As far as I can tell there's a clearing house in NYC but I don't know how the info is distributed. What caught my attention was the Japanese arrested at the Italion border a few years back with billions in Fed paper. Didn't make sense back then but it does now. Actually, if I try to think like a real sleazeball scumbag - it all starts to make sense.

Fri, 05/27/2011 - 07:21 | 1315791 breezer1
breezer1's picture

didn't the fed experts say the treasuries were counterfit?  rrrrriiight.

Fri, 05/27/2011 - 01:43 | 1315637 Transformer
Transformer's picture

Yeah, like where do they get off on saying that?  Even that stupid video from the National Inflation Association has in it on the day the dollar died that the big announcement is that China quit buying.  I'm no expert.  I only know what I can gleen from these bloggers on the net.  China aint buying T's.  that OLD news.

 

Thu, 05/26/2011 - 21:28 | 1315172 Yen Cross
Yen Cross's picture

 Beat it! you know nothing about trend lines or trading!!!!!!!!!!!!!! Liberal Clown!

Thu, 05/26/2011 - 20:58 | 1315102 buzzsaw99
buzzsaw99's picture

One explanation is that while foreign investors are aggressively buying up the belly of the curve, they are even more aggressively selling the other parts of the curve, namely both the short (sub 2 Year) and the Long (10-30 Year)...

That is a logical conclusion based on the evidence and current environment therefore it cannot possibly be accurate. lol

Fri, 05/27/2011 - 00:03 | 1315524 boiltherich
boiltherich's picture

Another is that there is a huge hole in the report; it said foreign holdings declined but did not say which foreigners.  Usually in the TIC reports it details the inflows and outgoes by region with "Caribbean" being one the largest holdings (Mar 2011 = 154.8 billion) and most active, only exceeded in size by China, Japan, UK, OPEC nations, Taiwan and Brazil.  Since the people of the Caribbean are not doing that much business in near endangered conch meat it is obviously just a money laundering scheme mostly for American corporateinterests and wealthy individuals.  In fact the money is deposited in Cayman Island banks as well as Bahamian banks and many others for all of 1/1,000th of a second before vanishing into the global black hole of untraceable assets.  It is usually a tax dodge.  It is usually also legal.  By dint of having been sent for a fraction of a second to the Caribbean it becomes "foreign" money and as such not taxable under the US corporate tax.  Perfectly legal as long as K Street keeps the bribes flowing to your congresswhore. 

Thu, 05/26/2011 - 21:05 | 1315106 km4
km4's picture

Ben and Timmay 'shut the fuck up' with due credit to http://www.youtube.com/watch?v=3foXJfWlgoM

Thu, 05/26/2011 - 21:02 | 1315116 Yen Cross
Yen Cross's picture

  Timmah is in hiding.Nice post Burnt Meat.

Thu, 05/26/2011 - 21:07 | 1315123 legal eagle
legal eagle's picture

I have some property for sale, how do I get the Fed to buy it. Oh, that won't work my property has value.

Thu, 05/26/2011 - 21:24 | 1315162 Yen Cross
Yen Cross's picture

P.B.oC. will incite your request.

Thu, 05/26/2011 - 21:20 | 1315157 Reese Bobby
Reese Bobby's picture

Carry trade wobbly?

Thu, 05/26/2011 - 21:29 | 1315168 Yen Cross
Yen Cross's picture

 My tRADES ARE ,(STEAD FAST). Old School.

Thu, 05/26/2011 - 21:36 | 1315194 Reese Bobby
Reese Bobby's picture

WTF does "STEAD FAST" mean?

My Filipino houseboy is more literate...and he's a "retard"

Thu, 05/26/2011 - 23:07 | 1315435 JW n FL
JW n FL's picture

you will never find any better help in the world.. ever.

Thu, 05/26/2011 - 23:41 | 1315482 Pepe
Pepe's picture

UNWAVERING

Fri, 05/27/2011 - 08:17 | 1315866 Reese Bobby
Reese Bobby's picture

Like STEADFAST?

Fri, 05/27/2011 - 00:57 | 1315590 Yen Cross
Yen Cross's picture

 I guess the boys explained it pretty well! Thanks Fellas! Smiles.

Thu, 05/26/2011 - 21:30 | 1315178 americanspirit
americanspirit's picture

So the new F-35s are going to cost $1 trillion to maintain for their lifetime and we're going to have 2000+ of these monsters. Is that correct? So just this one airplane in our kitty is going to cost us 2000 trillion dollars - to "defend " ourselves against a bunch of ragheads? Couldn't we just buy them off for half price or less? What's wrong with this picture? 153 trillion looks like chump change.

Thu, 05/26/2011 - 21:48 | 1315221 LaLiLuLeLo
LaLiLuLeLo's picture

papa's got a brand new bag...

 

http://www.youtube.com/watch?v=gK7ktLXhq88

 

Thu, 05/26/2011 - 22:01 | 1315256 tarsubil
tarsubil's picture

The government selects for inefficiency so everything it does is becoming harder and harder to do. Soon it won't be able to wipe its own ass.

Thu, 05/26/2011 - 23:08 | 1315436 zen0
zen0's picture

Relax. The one trillion is for 2,400 airplanes, not one airplane.

 

Thu, 05/26/2011 - 23:41 | 1315486 LRC Fan
LRC Fan's picture

Phew!  That was close...thought we were talkin about real money there for a second.  Just a trillion?  Psssh.  Nothing to see there. 

Fri, 05/27/2011 - 05:58 | 1315756 ibjamming
ibjamming's picture

We've been paying them off...I guess they're asking for more?  Too much?

That's why I think a REAL war is coming to the ME.  They've been asking too much for that oil.  Time to cut out the middle man.

Fri, 05/27/2011 - 08:07 | 1315848 Savyindallas
Savyindallas's picture

Don't underestimate those ragheads. Bin laden was somehow able to sneak in a team to wire three buildings for demolition and fool the entire NORAD defense system into standing down on 911. He also made a lot of money on those puts, and apparently the SEC could never catch him. The guy was an evil genius. Too bad we had tio shoot him and dump him. He would have been a valuable asset for our CIA if we could have flipped him.

Fri, 05/27/2011 - 09:47 | 1316277 NotApplicable
NotApplicable's picture

Win!

Thu, 05/26/2011 - 21:30 | 1315182 Blindweb
Blindweb's picture

August 17, 2007 gold started on a 50%!! 7 month rally...

Thu, 05/26/2011 - 21:30 | 1315185 slewie the pi-rat
slewie the pi-rat's picture

maybe whoever will do whatever:  sell dollarZ & buy gold!

Thu, 05/26/2011 - 21:41 | 1315213 ??
??'s picture

and without much notice everyones favorite, The PATRIOT ACT, passed earlier this evening assuring us all of four more years of safety

Fri, 05/27/2011 - 09:50 | 1316296 NotApplicable
NotApplicable's picture

We're going to need it vs. Al-CIA-da.

Thu, 05/26/2011 - 21:47 | 1315228 Midwest Prepper
Midwest Prepper's picture

Why can't the Federal Government just go to JP Morgan and buy a bunch of short contracts against the US, so when we default, we'll be rich!

Thu, 05/26/2011 - 22:00 | 1315264 Bastiat
Bastiat's picture

No you don't get it: JPM would be on the losing side of that trade . . .

Thu, 05/26/2011 - 21:58 | 1315259 Misean
Misean's picture

Sooooo, once again someone knows something no one else does, and stands to profit handsomely?

Thu, 05/26/2011 - 22:05 | 1315261 davepowers
davepowers's picture

reserves were typed up$53 bn in order to pay for not only $17 bn of QE2 Treasury paper purchases (QE LITE rollovers paid for the other $7 bn), but to cover $36 bn of checks written by the Treasury on its checking account at the FED.

Bank reserves can and probably will continue growing even if QE is ended. 

Thu, 05/26/2011 - 22:15 | 1315298 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

Michael Victory...your avatar (the guy from MAD magazine) is the twin of Scotty McReery (off American Idol)

Thu, 05/26/2011 - 22:32 | 1315338 Fedophile
Fedophile's picture

Math must not be your strong point Tyler...

From a total of $2.704 trillion, USTs held in custodial accounts declined by $18.7 billion to $2.685 billion.

 

2.704T - 18.7B != 2.685B

Close though, only off by a factor of 1000...

Fri, 05/27/2011 - 03:56 | 1315712 Al Gorerhythm
Al Gorerhythm's picture

Luckily he never has to work out the "captcha", or we'd never get these great insights.

Thu, 05/26/2011 - 22:59 | 1315405 zaknick
zaknick's picture

This blog has good reporting. Not just this story; this blog's only deficiency is not following the geopolitical aspects (reality) of the bankster ponzi economy.

The "new"? Durden clone has gotten better.

Thu, 05/26/2011 - 23:03 | 1315412 jtz5
jtz5's picture

Stupid question, I'm sure, but what if the Fed held all of the US debt and allowed the US to default?

Thu, 05/26/2011 - 23:41 | 1315484 tired1
tired1's picture

The Devil will have his pound of flesh. Debt will paid with sovereign assets.

Picture this: Every interstate in the US with a toll both every mile. Each toll booth collector an employee of The Fed, Inc.

That's for staters. For an example of earlier efforts see: Weimar Germany.

Thu, 05/26/2011 - 23:19 | 1315446 Peter_Griffin
Peter_Griffin's picture

We haven't had this high of a debt, nor this many treasuries out, forever.  I think rather than using the amount of Benny bucks, percentages would better represent historical prices.  But I could be wrong.

Thu, 05/26/2011 - 23:24 | 1315455 Caviar Emptor
Caviar Emptor's picture

Just put my credit card statement on the Fed balance sheet. 

Thu, 05/26/2011 - 23:35 | 1315474 LRC Fan
LRC Fan's picture

Is it just me or has this past week been super boring?  No real news, no crazy rumors, nothing exciting outside of a few big FX moves.  The Dow has been stuck in basically a 100 pt trading range all week...goes down at the open then rockets up around 1130 before selling off into the close.  Yawn.  Volume is hilariously light as well, volatility is nowhere to be found.  Even the PMs and oil haven't been too crazy this week-silver had the one big up day but other than that, nothing really.  Monday morning it looked like it could be a huge week, with some big moves either way, especially in oil, but then it fizzled out. 

I guess I should toss in the qualifier that this is a pre-holiday week, and that there HAS been some news, just nothing that has moved markets much.  Fukushima keeps getting worse, Greece isn't solved, US economic data sucks, yet here we sit basically right where we opened on Monday, actually up about a percent from that open. 

When will the volatility and volume come back?  When will something finally break for real and move these markets? 

A few nights ago we had the post "something breaks-ES drops 5 points" and it actually got way worse at one point-the ES was down about 11, but then we closed that day green.  It was something like 250 points from the Futures low overnight to the highs of the day.  So much for that. 

Maybe we are just entering the eye of the storm, and all is calm for now until it snaps. 

Would it surprise anyone if we get a false flag or something big over the holiday weekend?  Didn't they use Easter weekend to bring down the PMs?  Should be interesting to see what happens.  I feel like we're in a baseball game and the score is still 0-0, heading into the late innings-you know something big is coming, and with each passing at bat the situation becomes more tense-one mistake can easily cost you the game. 

Looking forward to the weekend though.  Even though I hate the military, I'll still enjoy the nice weather, the girls in tight outfits, and of course refreshing ZH every 5 seconds hoping and praying for a new post.  Plus I'm working on Memorial Day itself-time and a half, bitchez! 

Thu, 05/26/2011 - 23:50 | 1315497 tired1
tired1's picture

Maybe China will bomb Pearl Harbor. Stranger things have happened.

Thu, 05/26/2011 - 23:40 | 1315477 LRC Fan
LRC Fan's picture

Anyone know why the DXY just tanked?

Fri, 05/27/2011 - 01:42 | 1315635 LudwigVon
LudwigVon's picture

I like yar name thar LRC an I like yer posts, here is what I saw:

11:10pm EUR shoots to fresh session highs over 1.4210 on a stop driven move

11:41pm EUR blows through heavy stops near 1.4250 to reach highs over 1.4270

11:53pm Some people are citing an FT article saying some EU banks may get some breaks on the Basel III agreement, seeing it as positive for the Euro

1:17am EUR topside resistance should come into plau at the 55 day SMA which currently comes in at 1.4318/

Thu, 05/26/2011 - 23:54 | 1315501 wake up America
wake up America's picture

Time for a nap.. this is all just a yawn..  same thing day in and day out and they just keep doing the same thing every day but more of it.. at what point do we wake up and start revolting?  Greece, Spain, India, China, France, Ireland, the whole Middle East (less Israel) is in a revolution... we sleep and eat and tweet... all will be fine here in the land of the free and fondled...

Fri, 05/27/2011 - 03:05 | 1315685 Malachi Constant
Malachi Constant's picture

I think I understand you perfectly.

at what point do we wake up and start revolting?

is the only meaningful question, IMO. My humble proposal is "right now": start acting as if there already is no one to tell you what to do, how many pieces of cotton your food should cost, etc. The highest form of revolt would be to cancel one's ties with banks.

It boils down to a simple either-or: either (pseudo-)security, or true independence.

The point is, we should stop worrying about things we can't influence (eg the date and location of the start of WW III), and channel the newly-freed energy into something we can control (eg a parcel of land in Wyoming).

Critique?

Fri, 05/27/2011 - 03:05 | 1315688 Malachi Constant
Malachi Constant's picture

I think I understand you perfectly.

at what point do we wake up and start revolting?

is the only meaningful question, IMO. My humble proposal is "right now": start acting as if there already is no one to tell you what to do, how many pieces of cotton your food should cost, etc. The highest form of revolt would be to cancel one's ties with banks.

It boils down to a simple either-or: either (pseudo-)security, or true independence.

The point is, we should stop worrying about things we can't influence (eg the date and location of the start of WW III), and channel the newly-freed energy into something we can control (eg a parcel of land in Wyoming).

Critique?

Fri, 05/27/2011 - 09:23 | 1316127 tired1
tired1's picture

It wasn't raining when Noah started building his Arc.

Fri, 05/27/2011 - 00:28 | 1315550 falardea
falardea's picture

Here's an idea I thought of for all us commoners.  What if, as TSHTF we all post our SSN to facebook?  What if we encouraged identity theft?  I've pretty much vowed to only take debt from someone I can shake hands with and look in the eye, so I really don't care about my credit anymore (yes, foreclosure trashed it already, but that's another story).

 

Can anyone point out the problem with this, other than convincing the sheeple that that SSN is going to mean nothing by the time it matters?

Fri, 05/27/2011 - 00:41 | 1315567 LRC Fan
LRC Fan's picture

Are you fucking kidding me?

That might be the dumbest idea I've heard all day.  Granted, it's only 38 minutes into the day, but I'm pretty sure you'll win this one far and away.  Congrats. 

Why not just post your SSN here, right now?  Also post your checking account number (don't forget to include the routing number), driver's license number, address, name, phone number, car registration number, license plate number, Wifi password, email password, location of any/all PMs, and dog's name.  What could go wrong???

Fri, 05/27/2011 - 01:11 | 1315597 falardea
falardea's picture

Ok, relax.  I didn't mean to start you off on a sour note today.

 

I was thinking more in terms of becoming anonomous.  When people start rioting in the street because they can't afford to eat.  When our government goes to war with Canada/China/Mexico/Eurasia/Caledonia/You to hide their inability to resolve the social issues that will be plaguing them.  When the neighborhood kid who use to mow your lawn comes to your door with a tec-9 and mows you down.

 

First, I understand there are plenty of problem doing it now... hence I'm not as bold as the "lifelock" guy... who had his identity stolen. Second, I think our SSNs are not the same as passwords, bank account numbers, etc.  When TSHTF I don't expect to have a bank account, I plan to have a root cellar with 6-8 months worth of canned good and a small armys worth of ammo... maybe whatever silver I can get too.

 

What if it became a viral movement... April 15, 2015.  If we last that long before they have us in labor camps.

 

It may be the dumbest idea of the week, but I was figuring the heads here at ZH could set me straight.

Fri, 05/27/2011 - 01:58 | 1315651 Transformer
Transformer's picture

Falardea, I can dig it.  Let the ID theft guys go at it.  Just fucks up the system even more.

It's kind of an Anarchist thing, for those that don't get it.

Utterly destroy your SS connected financial stuff, and then you are really done with it.

Cool.

I won't do it, but I'd love to watch.

Fri, 05/27/2011 - 09:17 | 1316099 falardea
falardea's picture

Yeah, I was thinking in terms of Atlas Shrugged.  If we can destroy the system faster than they are, they won't be able to maintatin control.  Drop out and let the baboon shit throwers figure it out on their own.

 

From my perspective, the SSN is a means of tracking us and our labor.  It is essentially our Federal Reserve citizenship card.  I would rather be a citizen of the United States, but the United States died in 1913.

 

I wouldn't do it either, as a sole individual, or I'm nothing more than the engineer who flew his plane into the IRS building... pointless.

 

As an abstract idea, how would it really fuck their system of control if they could no longer take their cut from our efforts?

Fri, 05/27/2011 - 00:51 | 1315586 Yen Cross
Yen Cross's picture

 Thanks for the junks! Took long enough.

Fri, 05/27/2011 - 01:22 | 1315619 DoChenRollingBearing
DoChenRollingBearing's picture

You should have seen the junks come at me when I asked for my friends at ZH to email me at gmail re my new blog!  Yen, you (and other friends of the 55 year old bearing buyer) and other friends of mine are invited to email me at gmail (and prove who you are and will NOT spread my name and blog link here at ZH) re my new blog, where I use my *real name* and link. Trolls and bullies are uninvited. ONLY ZH-ers have to go through this, all my email list and Facebook friends already have my blog link. I write deliberately in this reply in a sleazy format to hide myself (to a degree) from the nasty types here at ZH, my blog is for nice people who have been nice to me.

Fri, 05/27/2011 - 01:12 | 1315609 merehuman
merehuman's picture

600 germans having bloody diarreah, some dead, from spains cucumbers. I know its a financial site, but care for folks to not get hurt.

Fri, 05/27/2011 - 01:39 | 1315630 DoChenRollingBearing
DoChenRollingBearing's picture

WOW!  merehuman you are back!!!  One of my top favorite faves!

Please email me at (moniker) at gmail if you would like to see my new blog, so far 23 ZH-ers have asked me to link them to it.  Please prove (annecdotes, etc.) who you are, for my protection, your's too?).

I put up all this security business because there are assholes here at ZH, so I make ZH-ers jump through hoops that my normal emailers and Facebook friends do not do not.  I hope to see you Comment on my blog!

BEST to you!

DCRB

Fri, 05/27/2011 - 01:53 | 1315643 brianbbad
brianbbad's picture

Noob question, be gentle: What does "quant crash" mean?

Fri, 05/27/2011 - 02:54 | 1315683 Ivar Kreuger
Ivar Kreuger's picture

Interwebs is smart.

http://lmgtfy.com/?q=quant+crash

Fri, 05/27/2011 - 03:54 | 1315711 Transformer
Transformer's picture

I followed that google, and it seemed..... uh ...... rather complicated.

How about in 25 words or less?

Fri, 05/27/2011 - 02:49 | 1315682 Paralympic Equity
Paralympic Equity's picture

The thing that I don't understand is why Japan was a net buyer of UST on a monthly bases even after the quake?

 

China was a seller, of course.

Fri, 05/27/2011 - 03:30 | 1315698 London Banker
London Banker's picture

@ Tyler

One possibility that you don't consider is that foreign investors are merely changing custodians.  If they move their US Treasuries abroad to either Euroclear or Clearstream then the assets are deemed governed by Belgian or Luxembourg law respectively.  This makes it harder for the adversarial and unpredictable US Treasury to seize or freeze these assets.  After what has happened in Libya and Syria lately, a lot of governments will be reassessing US custody arrangements.

Moving the Treasuries to Euroclear or Clearstream will not show up in trading markets and will not show up in FX rates.  If these are stable, then this is probably what is happening.

Fri, 05/27/2011 - 04:06 | 1315714 lubyanka
lubyanka's picture

"Lastly, the nearly $20 billion in USDs likely will have to be converted to another FX denomination: should any notably USD weakness be observed in the next several days, this could well be a reason."

 

USDCHF right before midnight EST?

 

 

Fri, 05/27/2011 - 04:49 | 1315727 Dugald
Dugald's picture

"Or will the solution be buy more of our own shit, and compound the problem?"

Patience Grasshopper...in time, shit, will be the least of

your problems.

Fri, 05/27/2011 - 08:09 | 1315844 Chuck Walla
Chuck Walla's picture

Bang, Bangers & Bimbos~! Bithcez!

Fri, 05/27/2011 - 08:34 | 1315904 Dolemite
Dolemite's picture


Nasdaq in a great place for a sell entry

http://deadcatbouncing.blogspot.com/

Fri, 05/27/2011 - 09:51 | 1316298 Doyle Hargraves
Doyle Hargraves's picture

Rifles, Redheads, and Ropes (Gold ones), Bitchez!

Fri, 05/27/2011 - 10:17 | 1316426 thebark
thebark's picture

and now you do what they told ya......haha

 

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