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Another $35 Billion In US Debt Added: 5 Year Bonds Price As Bid To Cover Jumps
Today's early (due to the FOMC statement and press conference) $35 billion in 5 year bonds auction was another uneventful issue of debt. Pricing at 0.899%, or well inside of the 0.915% When Issued, today's latest addition to the US $15.3 trillion in debt came at a 3.17 Bid To Cover, the highest since May 2011. The fact that BTCs continue to rise consistently even as yields decline makes lots of sense in some parallel universe, or in this one, when one considers that the bulk of the paper promptly makes its way to the repo market where it is quickly swapped for cash. The reason for the jump in implied demand was primarily the Direct Bid which took down 15.1% of the final allotment, the most since November 2010. The Indirect Bid was in line at 43.4%, compared to the TTM average of 43%, while Dealers saw a modest drop in their take down, coming below the average of 45.8% at 41.5%. This leave just tomorrow's $29 billion in 7 Year bonds in the weekly issuance docket, even without a formal debt ceiling raise. Net of all auctions that have taken place while the debt ceiling has not been increased, total US debt is now well in the $15.3 trillion bucket.
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1/3rd of Apples 'stupendous cash holdings' swallowed up by the ravenous debt beast in just 1 hour! Gee thats just great.
How do I get me one of them jobs where I buy paper from the Treasury and sell it back to the Fed? Seems like a no brainer.
Very astute, this really frames the problem in a way that the average iPad munching moron can comprehend.
SO HOW FAR OVER THE DEBT CIELING ARE WE NOW?
'Net of all auctions that have taken place while the debt ceiling has not been increased, total US debt is now well in the $15.3 trillion bucket.'
Not a peep about the ceiling. S&P needs to downgrade more Eurobanks to divert...
Or, divert by sinking the USS Enterprise nuclear carrier in the Gulf which is on its final deployment and scheduled to be decommissioned at huge expense creating the mother of all diversions and excuse to start WW3.
That won't happen yet, not until Bernanke unleashes QE X.
The QE is what wont happen, not needed when youve already monetized everything under the sun and youre off to the underground military base to ride out WW3.
It's free "money". Think about how a ponzi works: the one running it gets out of Dodge right before the SHTF. So they will issue more QE right before War so to loot the Fiat Ponzi system one last time.
Loot who? The 401K and pension bathrobe brigades? All they need to do that is to just show 'funds unavailable until further notice' one morning. Theres nothing left but that, and the MF GLobal test run is already accomplished. I'm not sure why everyone is so convinced 1 more QE is surely coming, I dont believe it at all.
Because, daddy needs his medicine!
What debt ceiling?
Not a peep about the ceiling
Yeah... I kept waiting for that to flash across the teleprompter last night , but it never flew by...
Strange... (after all it was a STATE OF THE UNION, right?)... I must have been accidentally tuned to the campaign channel...
The plundering of Social Security continues...
Obama has gotten lost in teleprompter wonderland. Nobody knows just how deep the campaign trail goes.
And the money kept rolling in (and out).
uneventful...this is the future...from here on out they will all be uneventful...that is the plan...you buy them from us..we buy them back...a shell game that makes the sheeple think all is good...."look at that bid to cover"...lol....its no longer a market....nor an investment..how are you going to make your 8% returns needed on your pension fund with these....lol...you are not....so where do you go?.....yo go to the casino....greek debt..Portugal debt...illinois debt....give me some return baby.......what did that killer plant say in the play???? give me more...
All this to 'fool the sheeple'? Why?
No, something instead tells me one morning it all gets turned on its ear....theres no point in just fooling the sheeple, no money in it.
Bernake will just keep hitting the Treasury bond buy button on his Federal Reserve digital printing press. Resonsible countries need to push for another reserve currency because Benanke and the government are clearly abusing thier privilege.
Or, thats just what they want people to believe, 'all will just continue to infinity'...I dont believe it.
Note to indirect bidders: you are fucking idiots. No one in their right mind has ever continued being fleeced by a ponzi scheme that knew about it. Either you, indirect biders, are the stupidest mother fuckers on the planet, or you think you will benefit from the end game.
You will not benefit, for this ponzi is based on fiat, and by definition that means there is no underlying asset. You will be fleeced. If you are fearful of the fact that you have been sold down the river, well, man up and grow a pair.
Do something, indirect bidder, because no one is going to feel sorry for you when the shit collapses and you whine to the IMF about how you deserve credit due to your bulk of debt.
Oh, and that is what will happen. Massive debt default, IMF/World Bank to the rescue, and then China will bitch about how much collateral they should have to pony up for credit. They will point to the fact that they were good little boys and had serviced the US debt structure and that they deserve something in return. America will be so shocked to find out they had the wool over their eyes they will tell China to get fucked.
Good luck, indirect, you will need it since you are useful idiots.
How can people be relied upon to keep being so apparently stupid, making such illogical moves? Unless, they all know something completely different than we do.
Stupid people doing stupid things is one of the few things you can consistently rely on.
It similar to calling someone elses raise in poker when you are holding two 9s...best of luck with that...you may win or you may find you have the fourth best hand in the game...
Keep piling it deeper and deeper... until S&P issues another downgrade to the US.
100% FUBAR
What damage did the 1st S&P downgrade do, +2,000 DOW points? S&P downgrades seem more beneficial than free money QE's.
You certainly don't believe the S&P downgrade was beneficial. Markets that are manipulated may go against the grain for a while, but it never lasts forever. At the pace that debt is growing vs. GDP, there will come a day of reckoning when Washington D.C. is forced to openly admit it can not be repaid and the R-E-S-E-T button will get pressed.
I dont believe the 'race against the clock' scenario at all....these people have had all this planned for decades.
There were balanced federal budgets and a projected surplus as recently as the mid-to-late 1990s.
http://factcheck.org/2008/02/the-budget-and-deficit-under-clinton/
Fact! Liberals have all the facts! Fact!
I am not advocating any Democrat vs. Republican position. I am stating that there were days in the US when there was SOME fiscal restraint in Washington D.C. I don't care if Clinton or Newt et. al. want to take credit for it. I simply pointed out that there were balanced annual budgets and annual surpluses.
http://articles.cnn.com/2000-09-27/politics/clinton.surplus_1_budget-sur...
We haven't had fiscal restraint in Washington for over 100 years. If anyone believes that the government ever balanced its budget in the last 40 years, I need their help with getting a big cash payment stateside from Nigeria.
I have not heard Ron Paul claim the US didn't have balanced annual budgets in the 1990s.
The Cato Institute believes the US had balanced budgets when Clinton was POTUS (although they don't believe he deserves the credit).
http://www.cato.org/pub_display.php?pub_id=5656
Where did Ron Paul come from? Do you think I'm Ron Paul? I'm not and I am unsure if he agrees with everything I say.
This site has a strong Libertarian following. Ron Paul is highly respected here (as he should be). Therefore, I dropped his name as someone credible. Ron Paul is a fiscal conservative, and I have never heard him disavow the claim that we had balanced federal budgets in the 1990s. Perhaps you have a different notion of a "balanced budget" than Ron Paul does.
Next time I talk to him, I'll ask.
You're giving people too much credit. It is far worse than you think. The world is rudderless.
"You're giving people too much credit."
Agreed. There is no way (imo) a few select people could be orchestrating so much chaos whilst knowing how events will turn out. I believe there is a lack of competent leadership throughout the world.
no, actually it makes sense in this universe. when I know I can buy bonds low and sell high to the Fed and swap for cash to buy PM (or beemer) with the proceeds, I do it.
2 parallel universes, 1 we can see and the cognitive dissonance normalcy bias that 'they keep piling on more debt and bailouts to infinity'...and the other universe that the elite banking families live in that knows a very different plan.
yeah, exactly. be the first one to get hands on cash to purchase tangibles at current prices as opposed to later at higher prices. the Fed appears to almost always buy at higher prices so post-transaction I end up w/ more cash than pre-transaction. Then swap profit for PM...rinse, repeat..
No word about the debt ceiling: hell we don't have budget so who gives a damn about rules :( disgusting isn't it, when the elites just ignore what they are supposed to do because it might be difficult to deal with.
We'll see whats really going on behind the curtain one morning soon.
The Fed wants to own all the Treasuries. They will lie. The idiots on TV will fail to understand. Inflation will rage and be denied. But the plan remains the same. The US government effectively pays no interest on Treasuries the Fed owns. By owning all the Treasuries, the illusion that we didn't just print our way out of debt remains even as we effectively unhinge the monetary system from any sort of debt backing. Make no mistake. It is wide open pedal to the metal printing and the people that understand what is happening will never want to hold dollars. The system they are creating now will remain in effect as a cover for printing that can never stop.