WC Varones

Don't lend your hand to raise no flag atop no ship of fools

Foreign Treasury holders requesting three steps toward the door

Like any bubble, the Treasury bubble will be immensely profitable for holders who get out in time.

... which is what an increasing number of foreign holders look like they are trying to do.
[...] 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 disturbing development.
Obama just asked for another trillion dollars in borrowing, and the cowardly Republicans have already agreed to give it to him.  And then after the election, we'll need another trillion, which will again be approved without any spending cut concessions.  And within a year, another trillion.  The U.S. is spending more than a trillion dollars a year that it doesn't have, and no one other than Ron Paul is proposing to change course. 

Anyone buying a long-term Treasury at 2% or 3% is a martyr for the regime.  Sane people do not lend at 3% to governments with 100% debt/GDP adding on annual 7% GDP deficits, not to mention the gargantuan off-balance-sheet Medicare, Social Security, and state liabilities.

Got gold?

1 comments:

Doo Doo Econ said...

I am taking the 5th. However, it would seem wise if not for the margin accounts and investment banks who are selling account holder's commodity assets to bailout their friends. Additionally, Uncle Sam has confiscated such assets in the past. If one were to hold a wealth store asset, additional security measures may be warranted.

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