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The World is buying US notes and bonds in record numbers

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posted on Aug, 18 2009 @ 04:28 PM
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Despite the gloom and doom of the naysayers, the world set a record of net buying of US bonds and notes:
www.bloomberg.com...

Aug. 17 (Bloomberg) -- Foreigners renewed purchases of American financial assets in June, as investors sought safe haven in Treasuries amid concerns about the timing of a recovery in financial markets and economies worldwide. Total net purchases of long-term equities, notes and bonds were a net $90.7 billion, more than forecast and compared with net sales of $19.4 billion in May, the Treasury said today in Washington. Net buying of U.S. government notes and bonds totaled $100.5 billion, the most since records began in 1977, after net selling of $22.6 billion in May. Investors in Japan and the U.K. increased their holdings of U.S. assets as the Obama administration sold debt to finance a record budget deficit and fund economic stimulus spending. Recent signs of stabilization may further boost the flow of foreign funds into the U.S. in coming months, even as emerging powers such as China and Russia question the U.S. dollar’s dominance in the global economy. “As we have increased issuance, overseas holdings of our assets have gone nowhere but up,” said Dan Greenhaus, chief economic strategist at Miller Tabak & Co. in New York. “Despite all the worries regarding the potential of foreigners to rotate out of U.S. dollar-denominated assets, which will eventually cause a collapse in the dollar, no such action has been witnessed.”


It seems that given the instability of world securities, the US securities are still considered the safest haven.




posted on Aug, 18 2009 @ 04:34 PM
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Well we are still the wealthiest and most powerful (militarily) country in the world. The rest of the world is at their wits end financially. If we go so goes the rest of the world in all honesty. And if we start to go don't think for a second our government would not invade and take what they/we need to survive. Hell we already are doing it. Foreign countries are powerless to stop our debt based monetary system that allows the US government ungodly amounts of power and manipulation.............so in their eyes if you can't beat em,...........join em!



posted on Aug, 18 2009 @ 04:34 PM
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It's also a bit of a vote of confidence from the World Community for the American Government's ability to turn things around for themselves, even if the American people aren't quite as convinced.

Cash For Clunkers was just as flawed as any hair-brained scheme our Government has hatched, yet it worked...and it worked so well they had to do it a second time!

Just because our Government is basically inept and majorly corrupt, doesn't mean they can't protect the Treasury Department's Revenue Stream. The more corrupt they are, the more likely they will be jealously guarding that Revenue Stream!

And apparently everyone else sees that but the Americans people themselves.

But then again, foreigners don't have to see the Tent Cities, the Homeless, the Jobless and the empty blocks of Foreclosed Houses that Americans have to see on a daily basis either to tarnish their optimism that the American Economy is a sound Financial Investment.



posted on Aug, 18 2009 @ 06:57 PM
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reply to post by fraterormus
 





It's also a bit of a vote of confidence from the World Community for the American Government's ability to turn things around for themselves, even if the American people aren't quite as convinced.

I'm not so sure that the American people don't realize it. I think their concern is that they won't be part of the turnaround. Remember, most of them lost a good percentage of their retirement fund, and many of them lost jobs, and are still looking.
Many Americans feel that they are not a part of the decision making process, and believe that they will not partake of any rebound.



posted on Aug, 18 2009 @ 07:01 PM
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most americans have no idea

we are still top dog of course globally

our debt is a sought after investment for institutions and countries alike

where else would you store 1,000,000,000 safely?

in US GOV DEBT, that is where..



posted on Aug, 18 2009 @ 07:05 PM
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If you read the entire article, you find that China increased its holding of US bonds:


China’s holdings of notes and bonds climbed $26.6 billion in June to $617.7 billion, a 4.5 percent increase, while bill holdings fell 25 percent to $158.7 billion, the Treasury’s data showed.

In other words, the Chinese are buying longer term financial instruments, and dumping the short rem bills, indicating the belief that they feel inflation will not be a problem.



posted on Aug, 18 2009 @ 07:16 PM
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Funny though, the article doesn't seem to acknowledge that we (the US) have also issued a RECORD AMOUNT of T's

Nor does it mention that most of the foreign purchases are on the shorter term notes, not 30yrs.

Remember, all that debt MUST be settled at some future point, with the deficit at the high point that it is, one has to wonder how we are gonna pay the bill when it comes due.



posted on Aug, 18 2009 @ 07:20 PM
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reply to post by ProfEmeritus
 


Sorry Prof, it's actually the other way around, they are dumping long term T's and buying shorter term T's.

The article groups Bonds and Notes together in one accounting, not separate.

They are worried that we won't be able to pay at all in 30 yrs.

And, they have redeemed much of the bills they have been holding, rather than roll them over, which is why the #'s have decreased



posted on Aug, 18 2009 @ 07:30 PM
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reply to post by redhatty
 





Remember, all that debt MUST be settled at some future point, with the deficit at the high point that it is, one has to wonder how we are gonna pay the bill when it comes due.

That's exactly the point, though. These foreign governments obviously BELIEVE that we will be able to meet those obligations.



posted on Aug, 18 2009 @ 07:34 PM
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reply to post by ProfEmeritus
 


I have to expose your thread ProfEmeritus as "NOT TRUE".

The US government bought back those financial instruments, and were caught doing it. The US government was committing fraud trying to make it look like the rest of the world has confidence in the US dollar, when in fact they don't.

Here is the truth by ATS member "Burntheships":

This hit the internet today...

Shell game exposed!

BUSTED: FED SECRETLY MONETIZING DEBT; COLLUDING WITH DEALERS

Just last week, when the auction results were announced it was trumpeted to great fanfare that there was “more than sufficient” bid-to-cover, “strong demand” and all the rest.

And now it turns out that 47% (!) of the bonds that were taken by the primary dealers in that auction have been quietly bought by the Fed and permanently secreted to its balance sheet.

They didn’t even wait a full week! A more honest and open approach would have been for the Fed to simply buy them outright at the auction but this way, using “primary dealers” and “POMOs” and all these other extra steps the basic fact that the Fed is openly monetizing US government debt is effectively hidden from a not-too-terribly inquisitive US press and public.


www.chrismartenson.com...

You can find this on ATS at:

www.abovetopsecret.com...

ATS is good for stopping government conspiracies, thanks to "Burntheships"




posted on Aug, 18 2009 @ 07:35 PM
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reply to post by ProfEmeritus
 


Or . . . that when the US economy comes crashing soon they will be able to take a big piece of America for their own.

If they get WTO to help.

Smart people, who knows we will be divided in provinces with foreign ownership each one of them.


[edit on 18-8-2009 by marg6043]



posted on Aug, 18 2009 @ 07:37 PM
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reply to post by RussianScientists
 


Interesting that you mention that, because I also read that the ones that bought the T-bonds were confidential at least for the time being and that China was not there to buy.



posted on Aug, 18 2009 @ 07:39 PM
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Actually that is a really good thing.
second line



posted on Aug, 18 2009 @ 07:40 PM
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reply to post by ProfEmeritus
 


The FED has changed the "definition" of indirect bidders, and many think that there is some subterfuge going on recently to make it look like foreigners are buying more than they really are. It hasn't been clearly proven YET, but....

What we are seeing is foreign debt buyers are trying very hard to reduce the amount of longer term US debt they are holding and converting over to shorter term debt.

2, 3, 5 & 7 yr notes appear to be selling well.

10 & 30 not so much

SO what that is saying is our debt buyers are wondering if there will even be a US as we currently know it in 10-30 years.

That is not a whole lot of faith in our system.



posted on Aug, 18 2009 @ 07:42 PM
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reply to post by RussianScientists
 


Actually there wasn't anything "secret" about it, Bernanke openly said the FED would implement Quantitative Easing, which in essence is monetizing the debt with a direct intention of reducing the value of the USD.



posted on Aug, 18 2009 @ 07:44 PM
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reply to post by redhatty
 


Good previous posts mr hat

What I would debate though is your final paragraph.

I dont think they would put $ into something at all they had concerns about regarding political stability. More or less looking for a better yield.



posted on Aug, 18 2009 @ 07:47 PM
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reply to post by GreenBicMan
 


Political Stability??? Heh, who EVER KNOWS??

Financial stability, well that's another critter now isn't it?



posted on Aug, 18 2009 @ 07:48 PM
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These is lot of talk about 'buying by proxy' and very little investigation as to just exactly who is behind the buying. I would not be surprised if it isn't our government buying through international proxies!
Zindo

Edit: If we see lots of trucks leaving Ft Knox in the middle of the night, we'll know they are paying off those proxy buyers with our gold!!




[edit on 8/18/2009 by ZindoDoone]



posted on Aug, 18 2009 @ 07:54 PM
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reply to post by redhatty
 


Well, I would have to say at this point people would be more concerned with political stability bc if that goes up then of course financials will follow..

Of course, this depends from where you are viewing - if you are viewing from where you think we are heading dizzown financially, then yes, if you are in my camp then financial stability would be 2nd rate bc I believe we are out of the woods

NOTE : These are conjectures and I have never stated that I am anything of a bond-buff



posted on Aug, 18 2009 @ 08:00 PM
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Originally posted by fraterormus
The more corrupt they are, the more likely they will be jealously guarding that Revenue Stream!



But it is not a revenue stream.

It is an ever increasing stream of debt and high interest that will continue to weigh down the American economy and load down the taxpayer.

Of course the rest of the world doesn't care. Every dollar they lend the US ultimately undermines and weakens us further.



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