Foreigners Sell Second Largest Amount Of US Bonds Ever In Past Week, Record $93 Billion In US Paper Sold In Past 2 Months

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Thu, 10/27/2011 - 21:00 | 1819372 MFL8240
MFL8240's picture

Selling PIIGS bond or selling US Bonds, all the same crap.  Both insolvent and printing money.

Thu, 10/27/2011 - 21:35 | 1819443 disabledvet
disabledvet's picture

"monetizing the debt." not insolvent. I'd say we've made it to about the year 1840--shall we call it a "cyclical recovery in government"?--granted things were much cheaper back then. And we had the Wagon Wheel (if you had a wagon wheel back in the day you could do anything!). Now we have "space shuttles." perhaps an upgrade then?

Fri, 10/28/2011 - 02:42 | 1819993 acttang
acttang's picture

The PIIGS beg to differ: they WISH they could print money, but this darn EURO thing is such an inconvenience... 

Fri, 10/28/2011 - 05:41 | 1820094 LuKOsro
LuKOsro's picture

The benefit of the latter is that people (and sovereigns) are still forced into purchasing dollars. How long will this still be happening no one knows. Even though  I would not hold my breath on it, the dollar's days as a reserve currency are numbered. 

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http://journey-to-alpha.blogspot.com/

Fri, 11/11/2011 - 00:18 | 1868922 haibop
haibop's picture

It's like the market getting trapped..foam.

Thu, 10/27/2011 - 21:02 | 1819375 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Yep, looks like the first time in nearly 4 years that it has definitively turned downwards. The top is in!

Thu, 10/27/2011 - 23:24 | 1819753 Gene8696
Gene8696's picture

+1. ...but I just finished watching a bootleg copy of "Margin Call"

Tue, 12/06/2011 - 23:05 | 1953546 haibop
haibop's picture

Hmmmmm... range hoods

Thu, 10/27/2011 - 21:01 | 1819376 broke433
broke433's picture

It's a good thing bill gross bought em all

Fri, 10/28/2011 - 02:45 | 1819994 acttang
acttang's picture

What makes it better is that now we can have a selloff after we chased the big bond short into the cage. This mkt takes no prisoner...

Sat, 11/19/2011 - 14:36 | 1894311 haibop
haibop's picture

we need buyers like that. walk in freezer

Sat, 11/26/2011 - 11:39 | 1915084 haibop
haibop's picture

sure do...

Thu, 10/27/2011 - 21:04 | 1819383 101 years and c...
101 years and counting's picture

euro pd's selling their bonds to ben.  repatriot their usd into eur has created the ultimate short squeeze in all risk assets.  only 9 more months to go via op twist.

Thu, 10/27/2011 - 22:33 | 1819444 scatterbrains
scatterbrains's picture

I agree, isn't this full speed ahead money printing ? Via twist,  fed is printing to buy bonds so that Europe can sell out and repatriate back home. The rising Euro is then pressure released via Swiss printing to maintain the peg... a  circle jerk of central bankers printing on the down low.

Thu, 10/27/2011 - 21:04 | 1819386 Shizzmoney
Shizzmoney's picture

At least someone is still BUYING them.

I'd ask for a discount on that shit.

Mon, 11/14/2011 - 21:01 | 1877706 haibop
haibop's picture

sure do... power4home pro

Thu, 10/27/2011 - 21:06 | 1819390 Corn1945
Corn1945's picture

Low yield junk bonds guaranteed to lose you money.

Thu, 10/27/2011 - 21:07 | 1819391 hotkarlandthecl...
hotkarlandtheclevelandsteamers's picture

So I would see this as highly deflationary...sell em rates rise, housing craters, adjustable debt becomes not sustainable.  But who the hell am I, I am not a black man posting with my shirt off who spends my time with big dinner parties and taking people out on my yacht.

Thu, 10/27/2011 - 22:19 | 1819539 J 457
J 457's picture

Minus the shirt off comments, I think massive selling and no buying could lead to higher rates, which would not only cause another housing burden, but make debt servicing more of an immedite problem.  I see that as bearish for equities.  Why risk the volatility if I can make a decent return in T-Bills.   But then again, how will they fund the deficit if they don't print?  This could lead to a real interesting political battle.  

Sun, 03/18/2012 - 01:44 | 2266658 haibop
haibop's picture

good idea forex automoney

Fri, 10/28/2011 - 08:30 | 1820334 Carlyle Groupie
Carlyle Groupie's picture

"posting with my shirt off"

Poor Reggie. One day when he is older and has matured intellectually he will reflect upon his youth. He will realize that he could have become a great analyst, one with credibility widely respected for his knowledge and work.

If only he could have controlled his own vanity.

He could have become the black Meredith Whitney. But he blew it with the clown antics and is known far and wide for this rather than that. A suicidal ego knows no reason.

Thank you from China!

Fri, 10/28/2011 - 09:50 | 1820586 oddjob
oddjob's picture

But who the hell am I, I am not a black man posting with my shirt off who spends my time with big dinner parties and taking people out on my yacht.

Its not about being black, more akin to a psychopath with violent peacock syndrome.

http://www.theburningplatform.com/?p=18895

Sat, 05/05/2012 - 12:49 | 2399429 haibop
haibop's picture

pretty good info how to

Sat, 11/26/2011 - 11:44 | 1915091 haibop
haibop's picture

that could happen... walk in cooler

Thu, 10/27/2011 - 21:07 | 1819394 broke433
broke433's picture

They should call new Eurobonds eurobernenkes

Thu, 10/27/2011 - 23:18 | 1819742 greensnacks
greensnacks's picture

Barber bonds.

Tue, 05/01/2012 - 20:58 | 2389818 haibop
haibop's picture

agree... Inteligator

Thu, 10/27/2011 - 21:08 | 1819401 lolmao500
lolmao500's picture

I would need a hell lot of money to buy those treasuries (like 20% interest)...

Fri, 10/28/2011 - 10:11 | 1820656 TruthHunter
TruthHunter's picture

20% interest??

Of whose money?  If its your money, its a little low.

Sun, 12/11/2011 - 20:03 | 1968571 haibop
haibop's picture

good luck! electric fireplace

Thu, 10/27/2011 - 21:16 | 1819414 Comay Mierda
Comay Mierda's picture

Spx to 1360 at least in this epic short squeeze. welcome to the wolf market

Thu, 10/27/2011 - 22:07 | 1819515 jcaz
jcaz's picture

Nice call, Octotrader....

Thu, 10/27/2011 - 23:07 | 1819712 UP Forester
UP Forester's picture

It is.  Where do you think all the 401k money is now, pretty soon it'll be "all in" to pump it up.  Hell, mine was only down 10% last quarter, they wanna make that back for their X-Mess bonuses before the dice come up craps....

Fri, 10/28/2011 - 06:40 | 1820125 Bobbyrib
Bobbyrib's picture

Seems about right. My co workers are telling me to take my money out of cash and put it into the market. I think I'll wait for the crash..

Thu, 10/27/2011 - 21:41 | 1819426 DormRoom
DormRoom's picture

Triffin dilemma alert.  The USD as the reserve currency cannot solve it's domestic objective (QE-deleveraging), without creating international problems (hyperinflation for BRICS, and stagflation for developed countries).

BRICS already have high inflation.  The UK is likely in stagflation.

 

The more the Fed prints, the greater economic problems for other nations.  It's a structural problem embedded in the Bretton Woods System, when the USD left the gold peg.

 

If the exit in Treasuries accelerates, shits gonna get real. 

 

Robert Fisk, wrote an article in 2009, about oil countries exiting the USD payment regime.  That plan may be accelerating.

 

http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar...

Thu, 10/27/2011 - 22:05 | 1819512 Seize Mars
Seize Mars's picture

Triffin dilemma alert.  The USD as the reserve currency cannot solve it's domestic objective (QE-deleveraging), without creating international problems (hyperinflation for BRICS, and stagflation for developed countries).

There is no dilemma. They do this on purpose. They want the power of reserve status specifically so that they can offload inflation into other economies. That's the only reason why the US hasn't collapsed already - because we have shoved so much inflation into China and elsewhere.

The more the Fed prints, the greater economic problems for other nations.  It's a structural problem embedded in the Bretton Woods System, when the USD left the gold peg.

Yes but it has nothing to do with Bretton Woods. It is a fully contemporary system of exploitation of the world's resources, in return for which they export little pieces of paper. Nice trick, eh?

If the exit in Treasuries accelerates, shits gonna get real. 

It will. Just watch.

Robert Fisk, wrote an article in 2009, about oil countries exiting the USD payment regime.  That plan may be accelerating.

Every oil producing country that has ever tried to exit the USD system has been bombed, invaded and occupied by the US. Do you know Ghadafi's sin? He tried to establish a gold-backed African currency. He had about 148 tons of gold. If you fuck with international paper bankers, you get killed by the USA. Go Team.

Thu, 10/27/2011 - 22:12 | 1819522 DormRoom
DormRoom's picture

The union of petrol nations may introduce a petro currency, backed by China & Russia.  So no US bombing.. maybe some drone attacks against the plan architects.

 

Maybe that's why the US wants to invade Iran so much.  Iran has been transitioning away from the USD as the currency of oil payment for a while.

Thu, 10/27/2011 - 22:13 | 1819527 trampstamp
trampstamp's picture

All in due time my friend. Even the big boys will get screwed. You can't screw the FED no matter what you think.

Thu, 10/27/2011 - 22:36 | 1819593 gwar5
gwar5's picture

That'll be the day of the real reckoning, when oil is traded away from the USD.  Soon, very soon.  Putin is coming back and Russia is now the biggest oil exporter. He's made it clear what he will do. We're already road kill and the Karma truck is backing up to have another go. 

 

Thu, 12/29/2011 - 13:42 | 2019635 haibop
haibop's picture

And don't forget the Iranian situation too. beacon payday loans

Fri, 10/28/2011 - 00:55 | 1819914 Arkadaba
Arkadaba's picture

Yep!. Been reading Fisk for years. Who is next? I'm thinking Syria as a test run for Iran.

Fri, 10/28/2011 - 02:52 | 1819998 acttang
acttang's picture

Totally agreed that the $ denomination was by design. Forgot which advisor to which president once said that "It's our $ all right, but it's your problem. Deal with it." We are at the dawn of these bozos not wanting to deal with it.

Fri, 10/28/2011 - 08:12 | 1820277 QuietCorday
QuietCorday's picture

In my view, the only reason for the Libya campaign was Ghaddafi's moves towards establishing a new gold dinar. Someone is moving Mudgie catalysts, known as "rebels" in this case, round the region as though it was a game of Axis and Allies. 

The one to watch will be Turkey/Cyprus over drilling rights, with Greece, Lebanon and the wider EU pulled into the arena, with Russian and Gulfie pressure then into the mix, most likely. The potential for that to go nuclear doesn't bear thinking about, with the Greek state crippled, Europe a mess and Turkey finally realising the EU is a bum deal but having complications from turning their eyes instead to Syria (another current "rebel against the state" zone). Makes me wonder if this is why Hamas are trying to appear more reasonable recently ...   

Fri, 10/28/2011 - 10:15 | 1820670 TruthHunter
TruthHunter's picture

"If you fuck with international paper bankers, you get killed by the USA."

 

OWS, take notice.

 

The rules didn't change because you are young, broke, and idealistic.

Sat, 03/10/2012 - 01:46 | 2242623 haibop
haibop's picture

time to worry indeed... Rob Poulos

Thu, 10/27/2011 - 21:25 | 1819433 11.11
11.11's picture

Just in time for HARP 2.0.  Gotta let the people take advantage of these historically low rates.

Thu, 10/27/2011 - 21:34 | 1819440 Yen Cross
Yen Cross's picture

 This is a GREAT thing! justWatch The Wave.....  Back in the old days a ghost told me that consolidation was taking place.

 

    Ok, payback is a bitch.  Just remember gravity, is the only straight line trade! I'm out

Thu, 10/27/2011 - 21:39 | 1819466 msmith
msmith's picture

A look at the ES, DX, and GC shows that the "risk on" move is very near a key turning point as the wave counts are near completion.   The USD index may have already found some support from which to work higher from.  If so, it could encourage equities to return to the larger trend lower.  http://bit.ly/uZ0Uwd

Thu, 10/27/2011 - 22:09 | 1819520 jcaz
jcaz's picture

...Or.... The 200 DMA might be resistance.....

Seriously, one hot month and the kids think stocks go straight up again.

Thu, 10/27/2011 - 21:54 | 1819488 NOTW777
NOTW777's picture

look at a weekly of $tyx.

oct 2011 looks similar to dec 2008

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