Cracks in the Bond Market…(Read!)
By: Jim Willie CB, GoldenJackass.com
GoldSeek.com
Wednesday, 7 December 2016
Foreign USTreasury Bond dumping continues, and even accelerates. China and the Saudis are selling USTreasurys in a near panic. Foreign central banks liquidated a record $375 billion in USGovt debt in the last 12 months. An American disaster lies in the making from debt saturation, debt overload, and debt dumping. It is all denied by the Washington mouthpieces and the Wall Street handlers, as they lie. The USGovt debt default is within view, dead ahead.
One month ago in October tally, the USFed update of Treasurys held in custody revealed a frightening picture of foreign sales, big sales, even accelerated sales. The total amount of custodial paper had fallen to $2.805 trillion, the lowest since 2012. One month later, foreign central banks continued their relentless liquidation of US debt paper, as measured by the same custody account. Foreign central banks, sovereign wealth funds, reserve managers, and virtually every other official institution in possession of US debt paper, are liquidating their holdings at a frantic pace. They respond to domestic pressures with deficits to finance. They respond to the US fundamental situation, which resembles a Third World nation on a debt basis more so with each passing month. The next fiscal year for the USGovt is actually incredibly astonishingly on pace to surpass the $2.0 trillion mark in the deficit. Obama goes out with a bang, with accolades and applause from his fawning fascist fold. His dimwitted dowdy devoted followers even cheer the rising ObamaCare premiums, which they fail to comprehend as rising costs.
See the monthly Treasury Intl Capital (TIC) data for the month of September, the latest reported month. In October the latest 12 months (called LTM) had a massive $343.0 billion in USTreasury sales by foreign central banks. It recorded the period from July 2015 to August 2016. One month later, using the update for the September month, the LTM in USTreasury sales has increased to a shocking level. A robust frightening record setting $374.7 billion in offshore central bank sales was observed. It recorded the period from August 2015 to September 2016. Over one third of a $trillion in USTreasurys sold in the past 12 months, a continuing trend. Yet it is not in the financial news, not given importance, not given emphasis. This is hemorrhage. This is abandonment. This is near panic dumping. This is a glaring red signal! Among the biggest sellers of USGovt debt were China and the Saudis.
The Rest…HERE
