Foreigners Dump $74 Billion In Treasurys In 6 Consecutive Weeks: Biggest Sequential Outflow In Histo - GoFuckYourself.com

webairalex · 10-14-2011, 08:50 AM

For the ?too long, didn?t read? crowd:

Basically they are saying that China is dumping its holdings of US Treasuries, which may be a prelude to a run on the dollar ? which means a total collapse of the US monetary system from massive inflation.

Over the weekend, we observed the perplexing sell off of $56 billion in US Treasurys courtesy of weekly disclosure in the Fed?s custodial account (source: H.4.1) and speculated if this may be due to an asset rotation, under duress or otherwise, out of bonds and into stocks, to prevent the collapse of the global ponzi (because when the BRICs tell the IMF to boost its bailout capacity you know it is global). We also proposed a far simpler theory: ?the dreaded D-day in which foreign official and private investors finally start offloading their $2.7 trillion in Treasurys with impunity (although not with the element of surprise ? China has made it abundantly clear it will sell its Treasury holdings, the only question is when), has finally arrived.? In hindsight the Occam?s Razor should have been applied. Little did we know 5 short days ago just how violent the reaction by China would be (both post and pre-facto) to the Senate decision to propose a law for all out trade warfare with China. Now we know ? in the week ended October 12, a further $17.7 billion was ?removed? from the Fed?s custodial Treasury account, meaning that someone, somewhere is very displeased with US paper, and, far more importantly, what it represents, and wants to make their displeasure heard loud and clear. Whether it is China ? we do not know: we may have a better view in two months when the September/October TIC data hits, but even then it will be full of errors, as Direct Bidder purchases by the UK usually end up being assigned to China at the yearly TIC audit. And the sellers know this all too well. What they also know is that over the next few days (or weeks ? ZH tends to be a little ?aggressive? in its estimates for popular uptake), as soon as the broader population understands what has transpired, concerns about the reserve status of the greenback will start to resurface, precisely as many have been warning. And what has happened is that in six consecutive weeks, foreigners have sold $74 billion, or more government bonds in a sequential period of time than ever before.

http://www.zerohedge.com/news/foreig...utflow-history

http://www.libertariannews.org/2011/...ow-in-history/

xNetworx · 10-14-2011, 09:37 AM

ummm.... not good

DWB · 10-14-2011, 09:40 AM

Big deal. There is a new iPhone coming out and Manwin supposedly just bought Bang Bros.

Barry-xlovecam · 10-14-2011, 09:44 AM

I question the sources ...

Here is a good one

http://www.actionforex.com/analysis/...0111014151140/

They need the money now?

Really, the Chinese are speculating in depressed Greek Debt Futures :P

DWB · 10-14-2011, 09:45 AM

On a serious note, shit.

10-14-2011, 08:50 AM	#1
webairalex Confirmed User Industry Role: Join Date: Oct 2010 Posts: 253	Foreigners Dump $74 Billion In Treasurys In 6 Consecutive Weeks: Biggest Sequential Outflow In Histo For the ?too long, didn?t read? crowd: Basically they are saying that China is dumping its holdings of US Treasuries, which may be a prelude to a run on the dollar ? which means a total collapse of the US monetary system from massive inflation. Over the weekend, we observed the perplexing sell off of $56 billion in US Treasurys courtesy of weekly disclosure in the Fed?s custodial account (source: H.4.1) and speculated if this may be due to an asset rotation, under duress or otherwise, out of bonds and into stocks, to prevent the collapse of the global ponzi (because when the BRICs tell the IMF to boost its bailout capacity you know it is global). We also proposed a far simpler theory: ?the dreaded D-day in which foreign official and private investors finally start offloading their $2.7 trillion in Treasurys with impunity (although not with the element of surprise ? China has made it abundantly clear it will sell its Treasury holdings, the only question is when), has finally arrived.? In hindsight the Occam?s Razor should have been applied. Little did we know 5 short days ago just how violent the reaction by China would be (both post and pre-facto) to the Senate decision to propose a law for all out trade warfare with China. Now we know ? in the week ended October 12, a further $17.7 billion was ?removed? from the Fed?s custodial Treasury account, meaning that someone, somewhere is very displeased with US paper, and, far more importantly, what it represents, and wants to make their displeasure heard loud and clear. Whether it is China ? we do not know: we may have a better view in two months when the September/October TIC data hits, but even then it will be full of errors, as Direct Bidder purchases by the UK usually end up being assigned to China at the yearly TIC audit. And the sellers know this all too well. What they also know is that over the next few days (or weeks ? ZH tends to be a little ?aggressive? in its estimates for popular uptake), as soon as the broader population understands what has transpired, concerns about the reserve status of the greenback will start to resurface, precisely as many have been warning. And what has happened is that in six consecutive weeks, foreigners have sold $74 billion, or more government bonds in a sequential period of time than ever before. http://www.zerohedge.com/news/foreig...utflow-history http://www.libertariannews.org/2011/...ow-in-history/ __________________ Alex S Webair Internet Development, Inc. 516.938.4100 Ext. 218 AIM: Webairalexs Twitter: Webairalex EMAIL: [email protected] WEB: http://www.webair.com

10-14-2011, 09:44 AM	#4
Barry-xlovecam It's 42 Industry Role: Join Date: Jun 2010 Location: Global Posts: 18,083	I question the sources ... Here is a good one http://www.actionforex.com/analysis/...0111014151140/ They need the money now? Really, the Chinese are speculating in depressed Greek Debt Futures :P

10-14-2011, 09:37 AM	#2
xNetworx So Fucking What Industry Role: Join Date: Jan 2004 Location: Whore Island Posts: 14,445	ummm.... not good

10-14-2011, 09:40 AM	#3
DWB Registered User Industry Role: Join Date: Jul 2003 Location: Encrypted. Access denied. Posts: 31,779	Big deal. There is a new iPhone coming out and Manwin supposedly just bought Bang Bros.

10-14-2011, 09:45 AM	#5
DWB Registered User Industry Role: Join Date: Jul 2003 Location: Encrypted. Access denied. Posts: 31,779	On a serious note, shit.