So that is the bottom line...anyone have any insight? I've read several articles pointing to Russia, China, Japan "dumping" US treasuries, but I can't figure out who is buying them?
You can view their purchases online.
The Local Waste Paper Merchant.
Martians--and the "household" sector.
Funny....but it leaves the circle half open...i'm trying to bring some friends over to the dark side of the turd after following since January...but there are a lot of unanswered questions. A big one that keeps coming up is who does what with these dumped treasuries?
We certainly aren't/cant buy them, can we? That would be like the 3rd level in the movie "Inception" lol...
No your correct most Americans cannot. But your 401k can.
I wish someone on CNBS would answer this question just one time, if the Fed is out of the market, who is going to buy? We have a 1.5 trillion debt this year and likely next year as well, plus sellers from other nations. I think the fact of the matter is that Ben is never going to leave the bond market no matter what.
The question I want answered is where should the 10 year bond really be trading with the inflation we have (7-8%) and the credit risk that is out there? I am thinking that a 9-11% 10 year would be the start of fair value at this point. But we can't have that, it would kill the economy and make the debt payments unmanageable.
Ben must be the buyer, anyone who thinks different I would love to hear from.
Without the fed soaking up the excess USTs, the only thing I can see preventing a total POSX collapse would be if the bond holders realize the damage they would do to their own UST holdings if they tried to dump dump dump!
But one way or another, they'll find a way to keep soaking them up either by raiding trust funds, pensions or just printing on along without an official title.
But watch for the fed to actually stop buying, if they do and a large UST holder decides to start dumping asap, things could get very interesting overnight.
I think the answer to your question is the infamous 'London based entities' (Ben) and 'Caribbean Banking Centres' (Also Ben). Maybe some 'Household Sector' too (Ben again).
Been buying TBT for that special occasion, which may come sooner than many think.
Trying to make money shorting the bond market as been a bad trade for a long time. Ben will not risk letting the bond market to trade freely, its his market. Gold and silver are the better buys here. I wish you luck with TBT, but I don't see to 30 year trading too much lower for now.
The fed has been doing underhanded transactions for decades. It would not surprise me at all if they just funneled the money to some outside 3rd party shill-bank who's only purpose was to purchase these entities from inside multiple foreign nations so that it appears there is a global demand for them when in reality its been a big fat lie all along.
This page is a big steaming pile of crap: https://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt
The total number at the bottom has been going up since I started watching it over 2 years ago. It NEVER, I mean never has a down month where the total number of treasuries decreases. So someone was in there buying them well before QE2 started in summer of 2010. The Fed will continue to pull the same underhanded stunts its been pulling all along. They dont need to announce anything to accomplish this.
Thanks for the input fellow turdites. I think I "see" what's happening, so if im off base, someone please step in lol...we create the debt through treasuries, sell it to other countries, they buy because the treasuries are backed by the US Gov-hence the "safety" aspect-they get spooked with our mounting debt and want to bail...no one is buying so we buy back the treasuries...with what? The money the other countries originally paid with? Eventually we pay with-as Shill mentioned- our retirement funds, pensions? My kid's backs?
I know that is amazingly oversimplified, but I'm a simple guy, I just want a beer and my tangibles and I'll ride out whatever comes this way :-) If that is true, is anyone else pissed? Not trying to stir the pot, just trying to gain understanding.
If China, or any other country for that matter, is dumping treasuries, does anyone have to buy them back? Or is China stuck with them to use as TP when the ship sinks?
So who is buying Treasuries according to the latest government data?
"US households purchased $529 billion of US Treasuries in the first nine months of 2009, accounting for 45% of total new Treasury issuance. And you have been wondering just how Treasury yields have stayed so low for so long? Wonder no more. US households have done the heavy lifting unlike any other buyer this year. And as we have stated in the past, this decision by households has been driven by two very strong human emotions- fear and greed. Fear of losing money in what is a once in a generation credit bust environment. And greed from the standpoint that the Fed has made money funds completely unpalatable in terms of nominal yield prospects. Of course Treasury yields are not much higher by any means."
So far this year the Fed has purchased $293.3 Billion of Treasury Debt, and is by far the largest purchaser of Agency Debt at $803.8 Billion.
Foreign entities bought $373.3 billion of Treasury debt, and were net sellers again of $110.3 billion of Agency debt and $73.1 of US corporate debt.