Russia Dumps Treasurys For 14 Consecutive Months; China Slashes Holdings To Lowest In Over A Year
Today's disappointing TIC report confirmed what Zero Hedge reported back in January, namely the record dumping of Treasurys by foreign entities as tracked by the Fed's custodial account. And while we will spare you the details of the report (found here), two things bear pointing out: the very demonstrative selling of US paper by Russia continues, and is now in its 14th consecutive month (as has been reported here consistently), as total USTs in Putin's possession declined to a fresh multi-year low of $88.4 billion, half of the $176 billion in October 2010. Also confirming that the Asian anti-USD axis is now one which consists of at least Russia and China (and certainly Iran), was the stepwise dump of US paper by Beijing which sold $32 billion in US bonds in December, bringing its total to a new post 2010 low of $1100.7 billion. And lastly, this was not isolated to just these two: in December the grand total of US Treasury holding by foreigners declined from $4.75 trillion to $4.732 trillion. The question then is: just what are China and Russia buying (ahem stockpiling) with all the dollars that are not recycled back into Treasurys?
Russia:
China:
Total foreign holdings:
As this chart summarizes, total foreign sales were the largest since January 2010.
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Soooo....things are lookin up!
this is all bullish for treasuries bc.....bc.....bc it is....bc....bc.....Bernank says it's so! Oh and did you hear markets are bullish due to some Chinese words about Greece being such a great bet and all....
VXX has gone up while SPX has been flat the last few days. crash is brewing fellas
Maybe, I think we have one more spike in the ViX and dip to go through. Lots of perfect storms brewing in March. We'll see.
So if China and Russia are not holding US debt, the baby boomer generation is now drawing down on their US debt holding to buy cat food to eat, and the next two generations are dirt broke because they live off of credit and have student loan debt to contend with, that would mean The Bernanke is going to be busy stuffing his banking cabal pockets with all of the new debt issuance needed to rollover the previous debt. Sounds like fun.
Beranke is going to need a bigger wallet.
Ben (and the baby boomers) have been painted into a corner for some time now. There is a very real cost for creating capital without actually creating any real value or physical assets behind said capital. Ben has been lying about the ability to "raise rates to fight inflation in 15 minutes". If rates go up, America is bankrupt as the debt becomes impossible to service.
What will be interesting is when the Federal reserve and all central banks associated with the U.N., IMF and N.A.T.O. hold all the debt for the entire western world and the BRICs call bullshit on the entire thing and demand a new world currency backed by physical assets. The BRICs continue their purchasing of gold and silver hand over fist and this is the only way I can make sense of it.
energy is going to be a major problem for everyone, but that is another discussion entirely.
USA's oil imports from Russia going up, and Russia's UST holdings going down is a bad omen for the USA.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIM_NUS-NRS_1&f=M
Why hold bonds of a country you are going to nuke?
http://thespiritoftruth.blogspot.com/2009/05/russias-secret-war-plans.ht...
Spirit, what a BS !!!
Sounds more like a Spirit Of Warmongering!
No country will wage a war (incl. nuke war) against the USA, a militaristic imperialist with annual military budget over usd1 trillion, with hundreds if not thousand of military bases around the globe.
The other nations will just be doing the SELF-DEFENSE!
If a destruction ever happens upon the hegemon, the only cause is its own IMPLOSION!
“Civilizations die from suicide, not from murder.” — Arnold Toynbee
You're Toynbee quote is most appropriate.
I just uploaded a video in which J.R. Nyquist tells the blasphemous truth.
I suggest you watch it.
"Ben and the Babyboomers" sounds like a band from one of banzai7's works.
I heard they're touring with "Uncle Scam & the Bloodsucking Lobbies"
LOP - I think you've nailed the basic dynamics behind all the smoke and mirrors. Not too sure about B or I's role but R and C are certainly on their way to having the backing for a new world currency cornered in their hands. Game. Set. Match.
And you can bet that the Goldmans and JPMs of the world are already positioning themselves to go with the winners.
Ben says he can begin draining liquidity in 15 minutes.
The problem is the same people waiting for trickle-down will suddenly see their credit seize, leaving only cash-rich banks as a source of credit.
Inject liquidity at the top, drain it from the bottom. Just like rain from God. Oh, that must be what it means to do God's work.
Finally, I get it.
The overall trade deficit has to be compensated by an equal amount of foreign cash holdings, and the last time I checked the trade deficit wasn't going down very much. If Russia and China are selling Tsys, the dollars don't disappear. Other foreigners must be buying most of them. The only way those dollars are being repatriated is if the US is exporting some commodity, or if the US is exporting other financial assets (like stocks). It would be really ironic if the Chinese were selling Tsys and buying stocks instead.
Someone want to tell me how my gold is going up while the dollar's going up while oil's going up while stocks are going up while the VIX is going up while bonds are going up? How is it that everything has greatly gone up in price? What's the term for that? Bernanke? Bernanke???
this is not the decoupling you were looking for, move along
Hmmm, let me guess. The Fed leaked some bombshell news to their buddies before the 2pm FOMC minutes. Formal (and moot ) QE3 announcement forthcoming?
Yep, never stopped printing though actually so QE3's done and priced in.
The Banzai7 groundhog already saw QE3.
Your gold is not going up, and definitively the Dollar is NOT going up neither.
Investing with a limitless interventionist Fed is like buying a car with painted windows and the hood welded shut.
The Fed is backfilling withdrawals from Russia and China, propping up U.S. equities, discretely printing over IMF and ECB mission gaps, and digitally balancing debt and deficit reports.
The Fed stands ready to do more of the same for as long as it takes. This is the only public truth being told.
Im still trying to figure this out. So where is the money going? Are they buying out AAPL?
It is options expiration week.
After 8 weeks of up, up and up, there are a lot of call owners who can now be wiped out.
Just put on your bankster hat, buy your puts, borrow some coin from Uncle Ben at 0%, and slam the shit out of the SPY.
Instant profit.
To all the retailers who just bought into the hyberbolic bankster ponzi rally, sorry. They need to fleece the options holders now.
They'll jam it again eventually when it suits them and Uncle Benny.
Well the data doesn't lie: treasuries have rallied and rallied substantially on the news. In other news "Suleiman the Magnificent sends a message to the Bitch of Bulgaria."
Yeap. Japan and the UK are picking up the slack. Since their balance sheets all look positive, don't worry, everything is bone.
Ahhhh. Could that explain the 10 trillion yen "liquidity" injection from yesterday? My question is does Bernanke-son dress up as a Geisha totake these liquidity injections? He should be careful those liquidity shots are FUCKashima radioactive.
Calling WilliamBanzia7 - time to make a Bernanke Geisha takinga 10 tril yen liquidity injection?
I heard that if you sell treasuries to buy gold that this automatically makes you a terrorist.
Either one separately brands you a terrorist.
Do them both together and you are a bonafide future NDAA-inmate.
They probably buy US stocks as we speak, as who on hell would want to stick to the worthless bonds and dollars.
That will work out really well for them, won't it?
Ron Paul Veterans March on the WHite House
http://djia.tv/ron-paul/ron-paul-veterans-march-on-the-white-house-feb-2...
CONfidence.
It's never enough.
For every seller, there's a buyer, right?
....right??
Not all treasuries were sold. Some simply matured and were not rolled over. Others were bought with freshly printed dollars from the fed.
You must pay careful attention to who the buyers are and how they were able to buy. This isn't money backed by gold. It's funny money. Easily created digits in a computer.
For every seller, there's a buyer, right?
Not exactly. For every sale there is a buyer and seller. But not every willing seller has a mate, mate. Least that's what the housing market's been sayin' for 4 years...
Twist and shout.
Cmon, cmon, cmon, cmon, baby, now
Come on and work it on out.
You know you’re a twisty little girl,
You know you twist so fine.
Come on and twist a little closer, now,
And let me know that you're mine.
The rats are leaving the ship. What do they know that we do not?
Oh.....I think we all know.....we just don't want to admit it.
That as it turns out, there is a greater fool. His name is _______
<we join the sparsely attended meeting in the church basement already in progress>
Hi. My name is Cognitive Dissonance and I am a greater fool. It has been 6 months since I last greatly fooled.
Hi, my name is GLD in investments. We bought Apple at 350 just a few months ago. Do we sell bitch or not?
+1 CD
..the UK.gov looks like - 3rd largest holder of UST - what, for the love of god are the UK.gov doing??
When you see these charts, the obvious becomes clear - the 2 biggest producers & manufacturers of raw materials & stuff are withdrawing exposure from the dollar, whilst the US's running dog, the UK, is lapping up as much of the excrement falling from its hemorrhagic, sagging & wrinkly imperial arse* as it can.
Sellers: wouldn't be buying gold/silver with the proceeds by any chance?
(PAGE could do with a nice fat inventory when it opens)
* = ass
That there are better strategies than financing your soon-to-be enemy in armed conflict?
Do you mean bernank financing our enemies by allowing them to dump out all our paper at artificialy high prices on the backs of the tax payers ?
Bankers have no nation.
+ a million gazillion trillions (with compound interest).
Not to worry...The Bernank will buy them all.
When do USTs purchased by banks and underwritten by Ben constitute "channel stuffing"?
Are you bent over?
Say "cheese"!
Are you bent over?
Funny, that same question was on the Fed 1040 form, right after it asks for your SS#. :D
It's worthless garbage. Again, 99cent store computing power can tell you this!
You are getting paid less than the rate of inflation on a 30 year bond! You are NOT getting your capital back so throw that bullshit excuse out the window as well.
So the Fed (and all central banking families) will soon hold all the western world's debt. Same as it ever was. got physical assets? You fucking better.
Treasuries and Muni-bond sitting near lifetime highs.
A 100 point selloff in ES is guaranteed to send bonds into orbit.
Investors are buying, not selling bonds.
so on a previous post today the 'tard tells us that gold is signalling a huge upside move in the s&p. on his next post he tells us the bond market is signalling a 100 point es drop.
and folks wonder how robot trader claimed the title of 'tard.
robot trader: lowering the bar at zh since 2010.
It ain't easy being a T Rex in Velociraptor land. Anywho...let's make it so easy "even a caveman can do it": if the market collapses as the retarded TD's keep proclaiming (three years running now) wouldn't this cause treasuries to soar in value? NOW WHERE'S MY (market) MELTDOWN BITCHEZ?!!!!!!
RobotTrader
Treasuries and Muni-bond sitting near lifetime highs.
A 100 point selloff in ES is guaranteed to send bonds into orbit.
Investors are buying, not selling bonds.
Yep, because their sheeple, and idiots.
They will be left with a empty pocket and a handful of bloody IOU's,and a sore arse.
The reptile first swallows its own tail; then the kidneys, testicles, intestine, spleen, pancreas, gallbladder, stomach, liver, heart, lungs, trachea, and, finally, it's (a) black-hole blivit (in a vacuum).
Listening to Herr Tremolo Bern-a-key, the trachea is being swallowed as we ...
And the General sat, as the lines on the map moved from side to side.
(Us and Them, Waters 1973)
Like I've always said here, that Vlad Putin is one smart cookie. Bailing on the dollar is the only smart move on anyone's part. Pootsie just smelled the coffee early. As usual.
Yes what a sad legacy of dollar destruction has trailed in the wake of the Fed that those damn heathen Islamics set up in 1913 to control America and destroy our future.
Oh damn them! Damn them I say!
Where does it show up or is there a shadow balance sheet?
...the record dumping of Treasurys by foreign entities.
On that note: Flash to Fed's ever bloating balance sheet...
The treasury market works great until it DOESN'T and right now their are warning signs everywhere. Que up Robotard.
The treasury market works as long as sheeple believe it does. So long as they don't perceive the Matrix, the program keeps running...
The Tsy market can never fail because Ben can buy up the entire Tsy issue - forever. And if rates are driven negative in nominal terms, it just becomes pure monetization of Federal spending. The real questions are (1) where is the money going when Russia and China sell their Tsys? If they are buying gold, the gold sellers are putting the money somewhere also. And (2) for how long will the USA be able to buy oil with US dollars? I suspect the answer to the latter is "until Iran becomes a nuclear weapons power". And you know what that means. War.
Always low prices. Always?
http://www.ar15.com/forums/t_10_17/654644_look_what_just_appeared_in_my_local_walmart____.html
Nevertheless, for the love of all things Holy, do not shop at Wal*Mart.
IT WAS DISCUSSED ALREADY.. TOTAL BOGUS STATS...
i dont know how TIC is compiled but RUSSIA CENTRAL BANK MUST KEEP HALF OF
HARD RESERVERS IN $$ by LAW..
there's currency peg ruble / $, euro,... ratio is 50:45 dollar, 45 euro, rest of sterling, yen etc
RUSSIA RESERVES ARE 500 BLN $.. so if its not treasuries what is it ?
fresh printed crips 100 $ bills.. :)))
its pity ZEROHEDGE REPEATS THIS NONSENSE..
alx
Banks and governments get to use the law any way they want to. MF Global was suppossed to do things by law...
Russia is buying gold with those Treasury dumps - and other hard assets.
If such "Law" still exists today... it's GOD who writes down the LAW so it isn't bendable. LoL
World War III has started already.
from 4.75 trillion tot 4.732 trillion is not a lot.
it will take more than 25 years before all the us of a is the owner of all of its own debts. then they can pay themselves interest and make some profit.
they can pay themselves interest and make some profit.
Your /sarc key broken, or did you just open up a big tub of down arrow-itis?
it's the the power of the rational mind.
The REAL question is: what are they replacing it with? SHINY YELLOW STUFF?
Absofuckinglutely!
Spectre
"well Mr. Largo...how about some uranium?" That's yellow too of course...
deleted
In case you haven't figured out by now, in the current environment, where every marginal dollar has massive importance, the scale is exaggerated on purpose to show which way the "margin" swings, i.e., the flow. Pointing out total value would focus on the stock which in a world in which only incremental flows matter, and fundamentals are forgotten, is completely irrelevant.
everything is already exaggerated anyhow, so what's a little more or less in order to illustrate a point?
You sure can't be too careful when holding Ponzi Terrorist Treasuries.
According to BUFFETT, they ought to be replacing that stuff with STOCKS!
Shirakawa has taken note and is back to buying Cocoa ETFs.
The Fed will print up a few billions to buy those unwanted treasuries and give them a new warm and cuddly home on the Fed balance sheet.
Who's laughing at "Preppers" now bitch? If you still hold more dollars than PM's you could be an idiot!
Just means their effective trade surplus is a little lower.
Other countries have found the Achilles Heel of the US Government! Too Many Petro-Dollars! YIPEE!
Isn't the FED buying up Treasuries kind of like sucking your own d!ck? Worst part is the Amerikan public is told Uncle Scam still has a hot girlfriend and believes it!