Foreigners Sale 74 Billion in US Treasurys in 6 weeks. Largest outflow in History!!

foreigners have sold $74 billion, or more government bonds in a sequential period of time than ever before.

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.

www.zerohedge.com...

Well we all have been waiting for this. Will this start the chainreaction and the run on US Bonds? I dont know. With the Euro going up in flames its all a wild card. One thing is for sure, China is done with US Bonds and they have been showing us this in the past 6 weeks!

Sell them to whom? The mere fact that they can sell them tells me that there is someone else willing to buy. No? I wish China would sell all of their treasuries, then I would never have to hear again how "China Owns The USA!!!"

Originally posted by DragonTattooz
Sell them to whom? The mere fact that they can sell them tells me that there is someone else willing to buy. No? I wish China would sell all of their treasuries, then I would never have to hear again how "China Owns The USA!!!"

I dont know the awnser to your question but if i had to guess, the Federal Reserve is buying them up.

Yes. Propose an all out trade war with China when they sell only about a fifth of their total exports to you. Morons.

Right they are selling SOME of the owner papers they have on the USA.
Now we can have multiple owners
Aint being a slave great !!!!!

Originally posted by hbarker
Right they are selling SOME of the owner papers they have on the USA.
Now we can have multiple owners

Aint being a slave great !!!!!

keyword here is "PAPER," its all paper. no real hard assests and the chinese know this!

Lol, they're dumping these bonds right on Bernanke's head.

Operation twist is a total failure.

reply to post by camaro68ss


Gold is still rising despite a short fall. The Dollar is all over the place these past two months, but mainly falling as is Oil. It may soon be a buyers market if you have the money to gamble.

But I see it as a prelude to war unfortunately. Just listening to the leaders of many countries makes me feel this way.

I hope I'm wrong.

Originally posted by DragonTattooz
Sell them to whom? The mere fact that they can sell them tells me that there is someone else willing to buy. No? I wish China would sell all of their treasuries, then I would never have to hear again how "China Owns The USA!!!"

I was wondering the same about needing buyers to sell. If they are dumping them for pennies on the dollar, then I would be worried. Otherwise, it's just a change of ownership.

The gig isn't up for the federal reserve just yet.

The next step is "WAR BONDS"

Good citizens invest a percentage of thier earnings in war bonds.

You support the war don't you?

We all know what happens to citizens that don't support the war.

Thieving whores support the war



Orphans and widows support the war



Your brother supports the war



Your elders in the community support the war



BUY WAR BONDS

Originally posted by InformationAccount
We all know what happens to citizens that don't support the war.

They star in a ton of crappy, but very profitable movies, get married to Ted Turner, and then become a famous exercise guru?

Seriously, no, I don't. Historically speaking, a handfull of the citizenry has villified anti-war folks in the USA, but overall they tend to walk out of things pretty damn well off. Either as previously unknown everyday citizens who took a stand and ultimately recieved their 15 minutes of fame, or as previously known actors, musicians, or mouthpieces who recieved enough press time to place their works in much higher demand following them taking their stand.

reply to post by InformationAccount


Kids, too.

Originally posted by eldard
reply to post by InformationAccount

 

Kids, too.

There ya go even kids support the war.

reply to post by DragonTattooz


The Fed is probably buying them back 'under the table' and monetizing the debt. Some sort of crazy swap thing going I bet. Just a guess...

Let's see how many people here can actually understand this.

Treasury prices have gone way up due to the dropping of yields. Thus a bond due in say 5 years is selling for much more than what it will be redeemed for. Let's say the bond is selling for $107 and matures at $100. Over the next 5 years you will recieve 1.5% interest annually or 7.5% total. You can sell the bond for a 7% gain over maturity value today, so holding it for 5 years will only give you a .5% additional return vs. selling. This example is a bit extreme but there is little reason for people to hold these bonds, as there is little to be gained by doing so. They are being bought by people who have to buy them; fund managers who keep seeing inflows and investors which wish to use them as a base on which to borrow funds.

I don't get this "economy" crap and I don't want to! As long as we all wish to keep creating food to eat and homes to live in. As long as we desire to police ourselves and uphold laws that make sense, as long as we want to put out a fire when we see it, and teach our kids useful knowledge, as long as we desire to have electricity and running water, won't people step up to do these jobs? No matter what the status of some bonds and stocks are, I know I would still want to have working roadways and new inventions... I think its all a scam, because the only people who should be effected by this are people up at top who only want tons of money, and power over others. People who want more than what they need.. maybe I'm wrong but I just don't get it. People without a job could start growing food and raising livestock so we dokt have to import so much of what we need from other countries... America has a lot of natural resources. "They" just want to make it seem like we need to depend on other countries so they can implement a one world government. It's rediculous... They make it sound complicated on purpose so we think we need things like wall street and economic engineers and a zillion politicians with huge salaries... It's just numbers and graphs on a sheet of paper! How does that effect the will of the people to survive and eat and live under a roof and put away criminals and put out fires and heal the sick? The doctors we have now won't do brain surgery to save a life unless they get paid a million dollars? Well, get them the hell out and train some new people who have a heart and some decency. Like I say, the only people effected should be those who wish to have more than they need through clever scheming and manipulating. It's true, people will not be able to live lavishly with a staff of servants, butlers and maids if the servants have no reason to kiss this persons behind. So what? The rich can roll up their sleeves and pitch in like the rest of us...

reply to post by ZackMorris


How this affects the average person is that the dollar will eventually lose its value. That means it will take more dollars to buy food, fuel, shelter, etc. in the future. And when that happens, even well-intentioned, hard working people will have great difficulty feeding and taking care of their family. Please be prepared.