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New treasury auction numbers are insane: Debt is going parabolic

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posted on Jul, 24 2009 @ 12:30 AM
Clearly the US govt "plan" (insofar as it can be said to have one) is to borrow up to the hilt as long as they can, and long-term consequences be damned. The govt appears to be living month-to-month, in a sardonic echo of the fate of many normal and cash-strapped Americans.

And in addition to formal Treasury auctions, lets not forget the hundreds of billions the Fed is "injecting" here and there without much scrutiny at all.

The Goldman Sachs Alumni Societies (better known as the "Treasury" and the "Fed") are going to truly run us into the ground.

Oh My......

Let's see if I can count this up....

70 day CMBs, $30 billion (tomorrow)
13 week Bills, $32 billion (July 27th)
26 week Bills, $31 billion (July 27th)
52 week Bills, $27 billion (July 28th)
2 year Notes, $42 billion (July 28th)
5 year Notes, $39 billion (July 29th)
7 year Notes, $28 billion (July 30th)
19 year, 6 month TIPS (reopened), $6 billion (July 27th)

That's two hundred thirty-five billion dollars over the next week!

Almost one quarter of a trillion....... geejus.

I guess you should get while the getting is good, but this is going totally parabolic. That money has to come out of somewhere, by the way, in order for the sale to succeed, which is going to get rather interesting at some point - but exactly where it matters is impossible to know.

I expected that when we crossed the $100 billion threshold in a week the market would throw up all over it, but it didn't. Now we've got the government trying to sell a quarter of a trillion dollars in debt over the next week, the announcement is out there, and while the bond market is selling off to a material degree equities could care less!

This is flat-out insane. At this run rate we would be trying to sell twelve trillion dollars over one year's time, an obviously ridiculous and impossible-to-peddle amount of debt at any price.

When does the rest of the world wake up (not to mention the primary dealers) and say "NO!"? Never? Is there a truly insatiable demand for our government's debt, despite the fact that President Obama got up on the national stage last night and promised to spend another trillion dollars we don't have?

How do equities power higher into this sort of debt issuance? Is it simply that the market has deduced that the government will hand all of this zero-interest money out - indefinitely?

More at source:!!!-Treasury-Auction-Schedule.html

[edit on 7/24/09 by silent thunder]

posted on Jul, 24 2009 @ 12:45 AM
reply to post by silent thunder

I am not to savy on Bonds..

But it was my general understanding that as bond sales go up, stocks go down, generally speaking? That usually there is only high demand for T's if people are "fleeing" for safety....

Does anyone know how much the Federal Reserve will be monetizing?

posted on Jul, 24 2009 @ 01:03 AM
reply to post by Rockpuck

You know I'm new at this, but I think I read that they could be monetizing 83 billion, est. If that is correct or not I don't know.

I do know one thing though, that eventually the credit card is going to get cut off and it seems like that day is fast approaching.

The question is though, we first have to figure out if we are in a deflationary period or if that is long past and we are in inflationary period.

The damn fed and treasury won't give us the correct numbers to figure it out. It would be really nice because it would give us a real good indicator of where we are at in this scenario and WTF is going on.

Or maybe we are in a whole new financial paradigm, I don't know.

posted on Jul, 24 2009 @ 01:11 AM
reply to post by Hastobemoretolife

...Well if they continue monetizing the debt, we will be inflating like a balloon .. that's equivalent to printing new monies.. I believed that the Fed put a 300 billion cap on how much they would monetize, I don't know if they are still following that number or not...

As of right now, I say we are still in a deflationary environment as far as money in the Real Economy.

posted on Jul, 24 2009 @ 01:18 AM
reply to post by Rockpuck

Yes, that is my thought too, but I read somewhere, that a crazy situation could happen where inflation happens in the money supply but it actually deflates because there is no demand for the supply, I guess you could call that stagflation?

I could definitely see that scenario playing out. People have money to buy stuff but they don't want to buy anything. Now that would be interesting(i.e. head for the hills as fast as you can).

[edit on 24-7-2009 by Hastobemoretolife]

posted on Jul, 24 2009 @ 02:02 AM
Thanks for posting this information. I was wondering when the auctions were taking place. I've noticed the stock market always seem to go down right before we get to the 10 year auctions. Some of these may be close enough that the market will go down a bit. I'm halfway leaning towards market manipulation as to why it goes down before the auctions lately or it could be due to some other reason I don't know about yet.

posted on Jul, 29 2009 @ 03:49 PM
5yr auction

Bid to cover 1.92 vs 2.22

avg rate of 2.68% vs 2.63% expected.

Indirect bidders: M-I-A

Auction Results: Less Than Festive
by John Jansen

Tim Geithner threw a party today and he proved to be the most unpopular boy on the block as the response to his invitation was less than enthusiastic.

Full Text

...and Bucky manages to hold USDX 80 in his gunsight.


posted on Jul, 29 2009 @ 05:20 PM
reply to post by OBE1

Good find, thanks for posting...saw some other ugly stuff on the ole' Bloomberg Anywhere today but was too unsettled by it to dig deeper. I know where I stand, and right now the standin's fine. But the way these numbers are acting...the future is here today, is all I can say. I'm agog.

Fortunately after a quick parusal of the markets, I have been able to spend recent hours tacking between more distant shores. I advise those of you with one-or-more eyes on the "real world" to find some time to do something similar in whatever your own way is from time to time in the coming days, simply for your own mental health. Because you are going to need it -- its only going to get more hairy out there.

And thanks to everyone else who has posted, as well.

I leave you for now with the following pleasant little image to ponder, ladies and gentlemen:


posted on Jul, 29 2009 @ 08:04 PM
Does this show that to some extent markets are indeed, fixed?

Don't forget that the world leaders met in Italy at the G8 in early July of 2009.

Did they perhaps discuss methods to fix the economy?

Did they jointly agree to artificially fix markets in order to maintain dominance and control of the world financial system(s)?

Funny that within a week of the meetings, the markets started recovering considerably. Despite of the worrisome economic reports, job layoffs, continuing mortgage defaults, etc and so on; the market(s) rose to heights not expected by anyone including the experts.

Another fleeting glimpse at the core of the matrix

[edit on 29-7-2009 by warrenb]

posted on Jul, 29 2009 @ 08:38 PM
reply to post by silent thunder

Normally, I don't post few liners, BUT:

That graph, along with the planned spending, bodes severe DOOM for the USA....

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