posted on Mar, 7 2014 @ 08:22 AM
Actually if they follow 'Putin adviser' and dump their bonds they would immediately be purchased by entities that understand how economics function
in adult-land. You do not need an MBA to grasp simple supply and demand relationships.
oooo La de daa
What do we have here, someone who knows a little something about US bond market.
Well, time to display my knowledge too since I used to be a financial analyst in Toronto.
FED has been buying their own bonds for the last 6 years. In fact the latest thing they did was lend money to Belgium of all places and have Belgium
buy US bonds. FED uses a variety of smoke screens to shuffle newly created money around and buy US bonds.
In fact the entire Quantitative Easing is about printing new money and buying bonds and stocks.
Fed does about 60-80 billion a month, you need about 5 billion to send a market down 500 points in one day if you were to sell it as market order, at
any price available. This has been proven with "fat finger" wall st mistakes over the years.
If Russians sold 200 billion, it would cause FED to engage "circuit breakers" which would have the whole world ask, WHY
It would cause a crash that would be precipitated by other players who would be nervous about what's happening.
COULD FED BUY THEM ALL OUT >>>>>>>> YES IN FACT THEY COULD >>>>>> AND US DOLLAR WOULD TUMBLE 40%