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US and UK Central Banks Operating Shadow Monetization Program

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posted on Jul, 16 2010 @ 10:46 AM
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From my personal blog Fascist Soup:

Zero Hedge has been closely following the US treasury market for a while now and has noticed an aberration that can not be explained.

The UK’s total holding of treasuries has nearly doubled in less than half a year, while China has reduced its holdings to the lowest point since June of 2009 and Japan has also substantially cut its holdings.

“Treasury holdings increased from $3,957 billion to $3,964 billion almost exclusively as a result of ongoing exponential UK accumulation.”

Since we know its not hedge funds doing the buying, it begs the question of exactly who is doing the buying over in the UK.

Zero Hedge reports:


Yet in what is (and continues to be) the most perverse observation, that proceeds without any questions from the mainstream media, the otherwise broke UK, once “bought: a stunning amount of Bonds, or just over $28 billion in the month of May, consisting of $27 billion in Bonds, and $1.3 billion in Bills. The “UK” accumulation patterns continues growing in an exponential pattern, and the country which owned “just” $180 billion in USTs in December, has doubled its holdings to $350 billion in less than half a year.


Look for UK holdings of US treasuries to enter orbit soon as the rest of the world dumps the dollar.




posted on Jul, 16 2010 @ 10:50 AM
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no offense, but that is your personal blog.

Any evidence to back up the claims?



posted on Jul, 16 2010 @ 11:15 AM
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reply to post by mnemeth1
 


Nice so basically the US and UK government are doing the equivalent of check kiting. I wouldnt be suprised to see these bonds traded between our European allies. They will just keep passing them around to each other like a hot potato.

I imagine it works like this. The US prints a fresh batch of 30 billion and "loans" it to the British. Then the UK uses that to buy bonds. We are so screwed.



posted on Jul, 16 2010 @ 11:33 AM
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Originally posted by lardo5150
no offense, but that is your personal blog.

Any evidence to back up the claims?


No, I like to just throw arbitrary unsourced nonsense out and see who bites.

Now, if you actually went to the blog, you'd find a link.

And if you followed that link, you'd find another link.

And if you followed that link, you'd find yet another link.

And from that link, you might find something that looked like this:

www.treas.gov...

Which is raw data.

This data is then taken and transformed into spreadsheet charts, often looking like this:




Of course, clicking links can be difficult and confusing, therefore it is understandable why you would ask such a question.



posted on Jul, 16 2010 @ 12:37 PM
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Please! Let us not digress from what is an astoundingly important OP by diving into smarmy quips (and yes, I know "he started it.")

I would urge you to include your source links here, out of courtesy to the members, but I cannot compel you to do so; the choice is yours.

This topic is so important in the balance of the monetization issue, that many should be paying attention.

The price of a centralized global banking cartel is that it leaves us very vulnerable to the whims of the monopoly. Interestingly, it potentially victimizes all the other 'participant' nations as well; sadly, those who are the functionaries of the cartel couldn't give a rat's behind, regardless of their faux-citizenship.

How they manage to convince the world that their 'services' are necessary remains a mystery to me. It's like they are economic royalists. Wait a minute! They ARE economic royalists!

[edit on 16-7-2010 by Maxmars]



posted on Jul, 16 2010 @ 12:43 PM
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I'm not too clued up here - so maybe somebody would like to explain it to me in laymans terms. What exactly is the issue, what does or could this mean and what are the potential issues?

Much appreciated.

Edit: grammar.

[edit on 16-7-2010 by mr-lizard]



posted on Jul, 16 2010 @ 01:00 PM
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as i understand it the government loans the money off the bank of england at 0% interest and the bonds have a guaranteed return of around 7%? correct me if i am wrong. it could possibly then be used as assets to accumilate further profits in other areas. as we are all becoming aware, there is virtually 0 returns on savings account now so by focusing on bonds with a guaranteed return in essence they are making something out of nothing. i may be typing out of my ar*e but i hope not
regards fakedirt



posted on Jul, 16 2010 @ 01:09 PM
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Originally posted by mr-lizard
I'm not too clued up these issues - so maybe somebody would like to explain it to me in laymans terms. What exactly is the issue, what does or could this mean and what are the potential issues?

Much appreciated.


The issue is:

The UK government is broke

The Chinese government is reducing its holdings of our bonds

The Japanese government is reducing its holdings of our bonds

The hedge funds are not buying our bonds

The UK's holdings of our bonds have doubled in the past 6 months

Given that the other typical large buyers of US treasuries are not buying bonds, while a completely broke government is doing so at epic rates, makes one wonder just where the UK is getting the cash to do this.

High order money (money that can be leveraged up in our criminal ponzi fractional reserve banking system) comes from these bond sales.

When the US government sells treasury debt, it is literally creating money out of nothing.

The US government can then spend that money into the economy.

The inflation is held in check because the global money supply is reduced by the foreign nation's holding of our debt.

So the dollar, relative to the purchasing country's currency, remains stable.

However if the foreign country is simply printing money out of nothing to purchase those bonds (which the UK clearly must be doing), the inflationary forces are not held in check.

In the global scheme, the US and UK working in tandem to dilute the money supply through phony treasury purchases means ALL the other countries that hold US treasuries as an investment are essentially being made to foot the bill for the fraud, as well as the people of both the US and the UK.


The effect is the same as if a mega-counterfeit money producer started cranking out hundreds of billions of dollar bills in his basement.




[edit on 16-7-2010 by mnemeth1]



posted on Jul, 18 2010 @ 07:15 PM
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If this is in fact what is going on, and the other nations holding debt cotton on, the repercussions would be mind-boggling.

It sounds like such a risky business —after all it would be bound to come out via the published data— you have to wonder whether there's perhaps another explanation.

In fact it's so odd you could even ask if it's within the realms of possibility they're somehow all in on the scheme. Could there be some way the other nations holding debt have agreed to offload their holdings in a gradual, controlled manner such that the system would not destabilize too quickly (to the ruin of all), only to be compensated at a later date, in some as yet unspecified manner?

Perhaps to be recompensed under a future, global currency?



posted on Jul, 18 2010 @ 10:08 PM
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reply to post by mnemeth1
 


I too appreciate the layman's version. Thanks OP.

This type of finance always takes me while to get my head around. I think it has something to do with the disconnect from finances of the average individual. Joe goes to work to trade his time/effort for chits. He trades those chits for food. Repeat.

International finance looks more like complex gambling. There is no trading of something of value for something else. It's all margins and speculating. No one actually does anything or makes anything.

If the UK is broke, why is it buying debt (?) from the US? Is this more speculating? It would seem like if everybody else is putting distance between their bank account and US debt, why would the UK be so interested?

I would also be interested in finding out where the US government is "spending into the economy". It would seem like the last few years, most of that spending went into banks to cover their garbage. So are we selling debt to cover garbage?

Sorry if I sound ignorant of macro-economics it's just that I am ignorant of macro-economics.



posted on Jul, 18 2010 @ 10:18 PM
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I suspect a quid-pro-quo is in the works. It smells alot like making a credit card payment with your other credit card - and then the next month reversing the scheme to pay the second credit card with the first.

I don't believe that this will a.) last long and b.) end well!



posted on Jul, 18 2010 @ 10:25 PM
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Originally posted by pause4thought
If this is in fact what is going on, and the other nations holding debt cotton on, the repercussions would be mind-boggling.

....

In fact it's so odd you could even ask if it's within the realms of possibility they're somehow all in on the scheme.

....

Perhaps to be recompensed under a future, global currency?


Indeed, it is in deference to the first proposition that I gave taken to characterize the phenomenon as the "Cartel" effect. Of course, such a meme is repugnant, and painfully overlooked.

As far as the second proposition goes, I can only hope not, because the 'virtualization' of a currency that is already virtual, being fiat currency, is a recipe for total surrender to those some refer to as 'money lenders;' but it may be more accurate to refer to them as "economic royalists."



posted on Jul, 19 2010 @ 07:27 AM
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Originally posted by mnemeth1

Originally posted by mr-lizard

makes one wonder just where the UK is getting the cash to do this.


Indeed it makes one wonder,
Perhaps William Caxton could answer that one


PEACE,
RK




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