Thursday, Jul 23, 2009
235bn US bond sales coming this week
Deninnger: HOLY !@#!! Treasury Auction Schedule
This article was flagged up by Quiet Guy in the thread of a gold article posted earlier today, so credit to him. It need it's own article though. 235bn annualised is 12 trillion dollars. How long can this insanity go on? When will China and the world finally say no thanks?
Posted by general congreve @ 10:37 PM (480 views) Add Comment
3 Comments
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1. nomad said...
Thank you general for your informative comments to my questions on a previous topic, I will look into what you suggest but I like simplicity and have a nervous spouse.
2. nomad said...
Sorry, that won't make sense to any other readers, this is what I wrote in response to quiet guy's link that the general has now posted as a topic.
"This is over my head but that link scares the !@#! out of me. How can they sell that stuff . . .
. . . unless the banks and pension funds buy them only to be bought back by the treasury under their QE scheme.
But then what happens? Doesn't work does it? So who does buy the bonds? Presumably yields have to keep going up to encourage would be purchasers.
Why is this being done instead of QE?
Most importantly of all how will it impact on me? I'm just moving savings from short term deposit bond to short term deposit bond waiting for the right moment to buy a house."
The general was good enough to respond, recommending the purchase of some gold and silver.
3. nickb said...
The usual reason given why China and the rest of the world keep lapping this up is that they have accumulated such vast stocks of dollars that it is not in their interests to trigger a collapse of the dollar. Is the US seen as 'too big to fail'?