This page has been archived and commenting is disabled.
Foreigners Sell Record $85 Billion In Treasurys In 6 Consecutive Weeks - Time To Get Concerned?
Last week, when we pointed out what was then a record $77 billion in Treasury sales from the Fed's custody account, in addition to noting the patently obvious, namely that contrary to what one hears in the media, foreigners are offloading US paper hand over first, there was this little tidbit: "The question is what they are converting the USD into, and how much longer will the go on for: the last thing the US can afford is a wholesale dumping of its Treasurys. Because as the chart below vividly demonstrates, the traditional diagonal rise in foreign holdings of US paper has not only pleateaued, but it is in fact declining: a first in the history of the post-globalization world." Well as of today's H.4.1 update, the outflow has increased by yet another $8 billion to a new all time record of $85 billion, in 6 consecutive weeks, which is also tied for the longest consecutive period of outflows from the Fed's Custody account ever. This week's sale brings the total notional of Treasurys in the Custody account to just $2.66 trillion (down from a record $2.75 trillion) and the same as April of last year. And since the sellers are countries who have traditionally constantly recycled their trade surplus into US paper, this is quite a distrubing development. So while the elephant in the room could have been ignored 4, 3 and 2 weeks ago, it is getting increasingly more difficult to do so at this point, especially with US bond auctions mysteriously pricing at record low yields month after month. But at least the mass dump in Treasurys explains the $100 swing higher in gold in the past month.
»
- 28063 reads
- Printer-friendly version
- Send to friend
- advertisements -
Almost half of Americans believe Earth is 6000 years old and we sing along with T. Rex back then around the camp fire. Chay-jus also packed heat and wasted scores of those raghead Muzzie people. Real Hero!
Investing in Somalia makes more sense than investing in US T-bonds. Pretty soon Americans cannot even count to 10, devolution is quite fast there.
a good post
But MF Global is like totally ignored in the main stream meida and most of the financial press ....... just ignore the man without pants in the corner of the room ... just because he was at the pinnacle for so long ....... don't give it undue attention .... ok ... I will ignore what is in plain sight and obvious
a planned subversion of America by the .05% off shoring of jobs, check, destruction of currancy, check. dilution of morals and education, check,
fascist national security structure, check. dilution of genetics of population via unrestricted illegal immigration, check. flooding of nation with illegal drugs and legal mind altering drugs, check. destruction of constitution with first non native president and his resultant ignoring of laws, check.
goal One world gov. with rule by the 0.05%
yet to come as US Military not yet totally under thumb but subverted with pol appointed generals and destruction of units thru endless wars and social disruptions.
will the US Military Act before it is corrupted? unknown at this time.
"US bond auctions mysteriously pricing at record low yields month after month"
No mystery, more like secretely. Secretely replacing foreign purchases of treasuries with the printing press. This is one method of maintaining the economy...well just until their puppet president is re-elected. People are worried about December 21, 2012, I'd worry more about 2013 and 2014!