More Green Shoots

Discussion in 'Money, Investing & Precious Metals' started by UncleJoe, Feb 16, 2010.

  1. UncleJoe

    UncleJoe Well-Known Member

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    This comes from an investment broker site so take it for what its worth.

    Forget Greece, The US Almost Had A Failed Treasury Auction | iStockAnalyst.com

    This (treasury) auction was a very small step away from a failed auction. To see Primary Dealers buying so much (remember they HAVE to buy it) and Indirect Buyers so little, only confirms what I've been saying for months, that the US is entering a Debt Spiral: a situation in which it must issue more and more debt (while rolling over trillions of old debt) at the very time that fewer and fewer investors are willing to lend to the US for any lengthy period of time (more than ten years).

    Folks, forget Greece, the US has its own debt problems. And they're MAJOR. The fact that stocks RALLIED on this news tells you how disconnected stocks are from reality. The Debt Spiral has started and is now accelerating. It's only a matter of time before it becomes a full-fledged Crisis. And this one will make 2008 look like a cakewalk. If you're not already taking steps to protect yourself now...(sales pitch)
     
  2. UncleJoe

    UncleJoe Well-Known Member

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    This, from Treasuries Tumble on Supply, Europe?s Pledge to Support Greece - Bloomberg.com lends support to the above article.

    Direct bidders, non-primary dealers that bid on their own accounts, bought 24.1 percent of the 30-year securities, the most in at least five years. A higher yield at the auction than in pre-market trading may have cost the Treasury as much as $61.6 million in interest over the life of the debt, according to Bloomberg data.

    “Bidders felt no compulsion to bid through the market to purchase supply,” Chris Ahrens, head of interest-rate strategy in Stamford, Connecticut, at UBS AG, wrote in a note to clients. The firm is one of 18 primary dealers required to bid at Treasury auctions. “Some of the reticence was due to volatility emanating from the European sovereign markets.”
     

  3. Lake Windsong

    Lake Windsong Well-Known Member

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    when not if

    Been reading a lot about hyperinflation/financial collapse in past history. Mostly concerned with the panic of the people when it does happen. In the past, it was always so sudden, people ignored the warning signs until it was too late. This winter's crazy grab n buy till the store shelves are empty routine has assured me that any sudden financial disaster here would be just as chaotic as the ones I've been reading about.


    Sidenote: what do people do with all that milk, bread, and eggs they buy just before it snows? I know no one who enjoys french toast THAT much...
     
  4. pdx210

    pdx210 Well-Known Member

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    The government said Tuesday that foreign demand for U.S. Treasury securities fell by the largest amount on record in December with China reducing its holdings by $34.2 billion.

    The reductions in holdings, if they continue, could force the government to make higher interest payments at a time that it is running record federal deficits.

    The Treasury Department reported that foreign holdings of U.S. Treasury securities fell by $53 billion in December, surpassing the previous record of a $44.5 billion drop in April 2009.





    Foreign demand for Teasury securities falls - Yahoo! Finance
     
  5. UncleJoe

    UncleJoe Well-Known Member

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    Here's more from zero hedge.com

    Move Over China: Beijing Sells Whopping $34.2 Billion Treasuries In December As Japan Becomes Largest Official Holder Of US Debt
    Submitted by Tyler Durden on 02/16/2010 09:29 -0500

    Gradually we are getting confirmation that Chinese "posturing" about offloading US debt is all too real. The most recent TIC data confirmed the Treasury's greatest nightmare: China is now dumping US bonds. In December China sold $34.2 billion of debt ($38.8 billion in Bills sold offset by $4.6 billion in Bonds purchased), lowering its total holdings $755.4 billion, the lowest since February 2009, and for the first time in many years relinquishing the top US debt holder spot to Japan, which bought $11.5 billion (mostly in Bonds, selling $1.4 billion Bills) bringing its total to $768.8 billion. Also, very oddly, the surge in UK holding continues, providing yet another clue as to the identity if the "direct bidder" - as we first assumed, these are merely UK centers transacting primarily on behalf of China as well as hedge funds, which are accumulating US debt under the radar. UK holdings increased from $230.7 billion to $302.5 billion in December: a stunning $70 billion increase in a two month span. Yet, with the identity of the UK-based buyers a secret, it really could be anyone... Anyone with very deep pockets.
     
  6. Concerned_ Citizen

    Concerned_ Citizen Well-Known Member

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    its me guys, ive been buying it ALL up........


    seriously though, the more i learn the more im worried...thanks for the article
     
  7. HozayBuck

    HozayBuck Well-Known Member

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    Well I'm just a dumb ol country boy but when folks talk about china dumping our bonds I have to ask, on who? who's gonna buy them? our Gov sure as hell can't buy em back, with what ? more money so new the inks still wet, to be a seller you have got to have a buyer or am I not understanding this whole problem?

    I do wonder one day if the Government might not try to nationalize everything like a lot of countries have, which is sorta a big land grab so to speak....
     
  8. UncleJoe

    UncleJoe Well-Known Member

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    Concerned Citizen!!! He just told us!! Geeeeeez. :D
     
  9. HozayBuck

    HozayBuck Well-Known Member

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    well damn me if you ain't right..... OK CC, you can have my share for one OZ of gold!!! :D