Bonds

Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $346 BILLION In US Paper

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It is becoming increasingly obvious that foreign central banks, sovereign wealth funds, reserve managers, and virtually every other official institution in possession of US paper, is liquidating their holdings at a very disturbing rate.

– Saudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $346 Billion In US Paper:

One month ago, when we last looked at the Fed’s update of Treasuries held in custody, we noted something troubling: the number dropped sharply, declining by over $27.5 billion in one week, the biggest weekly drop since January 2015, pushing the total amount of custodial paper to $2.83 trillion, the lowest since 2012. One month later, we refresh this chart and find that in the latest weekly update, foreign central banks continued their relentless liquidation of US paper held in the Fed’s custody account, which tumbled by another $22.3 billion in the past week, pushing the total amount of custodial paper to $2.805 trillion, another fresh post-2012 low.

tsy-custody

Then today, in addition to the Fed’s custody data, we also got the latest monthly Treasury International Capital data, which showed that the troubling trend presented last one month ago, has accelerated. Recall that a month ago,  we reported that in the latest 12 months we have observed a not so stealthy, in fact quite massive $343 billion in Treasury selling by foreign central banks in the period July 2015- July 2016, something truly unprecedented in size and scope.

Read moreSaudis, China Dump Treasuries; Foreign Central Banks Liquidate A Record $346 BILLION In US Paper

China Injects Economy With A Quarter Trillion In Debt In One Month, But The Full Story Is Much Scarier

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– China Injects Economy With A Quarter Trillion In Debt In One Month, But The Full Story Is Much Scarier

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“From a growth rate perspective, the speed of credit expansion is alarming. The current pace of credit growth in China is realistically in a range between 19% and 20%, well above the reported official TSF growth of 12.4% and new loan growth of 13.0% in September. Relative to GDP, China’s credit-to-GDP ratio currently in a range from 260% to 275% of GDP as of September 2016″ – Barclays

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Can Russia Learn From Brazil’s Fate? — Dr. Paul Craig Roberts and Michael Hudson

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H/t  reader Squodgy:

“Exactly as explained in John Perkins’ “More Confessions of an Economic Hit,an”, Brazil has succumbed to US pressure/bribery, ensuring the challenge to BRICS by the Rothschilds is real and delaying the death of the Petrodollar.

Putin must respond very carefully if he is to skirt around the already well established Russian tentacles of the Rothschild Empire and achieve ties with China, India & South Africa (which is also under economic Rothschild based attacks).

It does seem BRICS ls under serious economic attack by the institutions, and unless they act soon, the Rothschilds will indeed enslave us all.”

– Can Russia Learn From Brazil’s Fate? — Paul Craig Roberts and Michael Hudson:

Can Russia Learn From Brazil’s Fate?

Paul Craig Roberts and Michael Hudson

William Engdahl recently explained how Washington used the corrupt Brazilian elite, which answers to Washington, to remove the duly elected President of Brazil, Dilma Rousseff, for representing the Brazilian people rather than the interests of Washington. Unable to see through the propaganda of unproven charges, Brazilians acquiesced in the removal of their protector, thereby providing the world another example of the impotence of democracy. http://www.informationclearinghouse.info/article45561.htm

Everyone should read Engdahl’s article. He reports that part of the attack on Rousseff stemmed from Brazil’s economic problems deliberately created by US credit rating agencies as part of Washington’s attack to down grade Brazilian debt, which set off an attack on the Brazilian currency.

Read moreCan Russia Learn From Brazil’s Fate? — Dr. Paul Craig Roberts and Michael Hudson

Health Ranger issues international financial alert as Deutsche Bank approaches catastrophic collapse… Trillions in debt exposure will burn through European banks like a raging firestorm

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And again: Prepare for collapse.

– Health Ranger issues international financial alert as Deutche Bank approaches catastrophic collapse… Trillions in debt exposure will burn through European banks like a raging firestorm:

Since 2008, I’ve been warning Natural News readers about the inevitable, mathematically unavoidable global debt collapse. For the last eight years, crooked politicians and criminal banksters have been “kicking the can down the road” with endless money printing and currency debasement. Now, it appears, we’ve all run out of road.

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Reader squodgy:

“Bad choice. I prefer the late Frank Zappa’s “THE MOTHERS OF INVENTION”…”

 

The Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent

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chinese-money-public

– The Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent:

The pinnacle of the global financial system is warning that conditions are right for a “full-blown banking crisis” in China.  Since the last financial crisis, there has been a credit boom in China that is really unprecedented in world history.  At this point the total value of all outstanding loans in China has hit a grand total of more than 28 trillion dollars.  That is essentially equivalent to the commercial banking systems of the United States and Japan combined.  While it is true that government debt is under control in China, corporate debt is now 171 percent of GDP, and it is only a matter of time before that debt bubble horribly bursts.  The situation in China has already grown so dire that the Bank for International Settlements is sounding the alarm…

A key gauge of credit vulnerability is now three times over the danger threshold and has continued to deteriorate, despite pledges by Chinese premier Li Keqiang to wean the economy off debt-driven growth before it is too late.

Read moreThe Bank For International Settlements Warns That A Major Debt Meltdown In China Is Imminent

The Mother Of All Bubbles, When The Debt Bubble Pops It Will Be Sudden And Rapid:Chris Martenson (Video)

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H/t reader squodgy:

“A very positive look at what we should expect with a collapsing economy and how to approach it positively…..”

https://youtu.be/qTrsy75AG8k

07.09.2016

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For The First Time, Two European Non-Financial Companies Will Be Paid To Issue Debt

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– For The First Time, Two European Non-Financial Companies Will Be Paid To Issue Debt:

Today was another historic day in the monetary twilight zone that is Europe, when two large European, non-financial companies were the first in history to be paid by investors to borrow, courtesy of the ECB’s corporate debt monetization program, which has unleashed an unprecedented scramble for frontrunning the central bank’s purchases of corporate debt and a historic collapse in bond spreads.

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We’ve Reached the “Zero Point” of Debt Creation

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Continue to prepare for collapse.

– We’ve Reached the “Zero Point” of Debt Creation:

Hurtling toward a massive financial crisis.

Forty-five years and counting: We’ve been on a debt spree since the early 1970s when we went off the gold standard, covering every possible angle. Trade deficits, government deficits, unfunded entitlements, private debt – you name it! Our total debt has grown 2.5-times GDP since 1971.

How could economists not see this as a problem? How is this the least bit sustainable?

It isn’t. We’re hurtling toward a massive financial crisis, and all we have to show for it are financial asset bubbles destined to burst. And when they do, they’ll wipe out the artificial wealth they’ve created for many decades… in just a few years, as they did from late 1929 into late 1932!

The chart below shows the common-sense truth.

Read moreWe’ve Reached the “Zero Point” of Debt Creation

America The Debt Pig: We Are A ‘Buy Now, Pay Later’ Society – And ‘Pay Later’ Is Rapidly Approaching

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America-The-Pig

– America The Debt Pig: We Are A ‘Buy Now, Pay Later’ Society – And ‘Pay Later’ Is Rapidly Approaching:

If you really wanted to live like a millionaire, you could start doing it right now.  All you have to do is to apply for as many credit cards as possible and then begin running up credit card balances like there is no tomorrow.  At this point, I know what most of you are probably thinking.  You are probably thinking that such a lifestyle would not last for long and that a day of reckoning would eventually come, and you would be exactly right.  In fact, anyone that has ever had a tremendous amount of credit card debt knows how painful that day of reckoning can be.  To mindlessly run up credit card debt is exceedingly reckless, but unfortunately that is precisely what we have been doing as a nation as a whole.  We are a “buy now, pay later” society, and our national day of reckoning is approaching very, very quickly.

Often we like to focus on our exploding national debt, but household debt is out of control too.  In fact, the total amount of household debt in the United States is now up to a whopping 12.3 trillion dolllars…

Read moreAmerica The Debt Pig: We Are A ‘Buy Now, Pay Later’ Society – And ‘Pay Later’ Is Rapidly Approaching

“Central Banks Now Own $25 Trillion Of Financial Assets”

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giant bubble

– “Central Banks Now Own $25 Trillion Of Financial Assets”:

With 85% of Wall Street telling Citi they expect a “dovish hike signal” from Yellen tomorrow, which means a polite request for another BTFD opportunity, even if as BofA says “expectations for a dovish Fed are coinciding with macro strength in the US (most obviously in housing & consumer spending) as well as highest level of wage inflation since Jan’10“…

wage expectations

… here is a quick reminder of where we currently stand from BofA’s Michael Hartnett, from a brief note titled The Liquidity Supernova & the “Keynesian Put.”

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Risk assets are now supported by the new ”Keynesian Put”, the expectation that fiscal measures will be deployed to combat any renewed weakness in the economy/markets (independently of any larger political projects). But asset prices remain primarily supported by excess monetary abundance across the world:

Read more“Central Banks Now Own $25 Trillion Of Financial Assets”

Madness In Mario-World: European Companies Issue Debt Simply Because The ECB Will Buy That Debt

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Mario-Draghi-laughing

– Madness In Mario-World: European Companies Issue Debt Simply Because The ECB Will Buy That Debt:

Things are so absurd in the Eurozone that the ECB is buying private placement debt with little regard for safety. In turn, private equity companies issue debt simply because they know in advance the ECB will buy it. It’s a startling example of how the market is adapting to extremes of monetary policy, and it’s a safe conclusion the experiment will not end well.

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Revealed: ECB Secretly Hands Cash to Select Corporations

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The ECB is still purchasing €80 BILLION of ‘bonds’ every month!

Mario-Draghi-Just-Evil

– Revealed: ECB Secretly Hands Cash to Select Corporations:

In June, the ECB began buying the bonds of some of the most powerful companies in Europe as well as the European subsidiaries of foreign multinationals. This pushed the average yield on euro investment-grade corporate debt to 0.65%. Large quantities of highly rated corporate debt with shorter maturities are trading at negative yields, where brainwashed investors engage in the absurdity of paying for the privilege of lending money to corporations. By August 12, the ECB had handed out over €16 billion in freshly printed money in exchange for corporate bonds.

Throughout, the public was given to understand that the ECB was buying already-issued bonds trading in secondary markets. But the public has been fooled.

Now it has been revealed by The Wall Street Journal that the ECB has also secretly been buying bonds directly from companies, thus handing them directly its freshly printed money.

Read moreRevealed: ECB Secretly Hands Cash to Select Corporations

Paul Singer Says “Everyone Is In The Dark”; Warns Of “Sudden, Intense Market Breakdown”

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– Paul Singer Says “Everyone Is In The Dark”; Warns Of “Sudden, Intense Market Breakdown”:

“This is the biggest bond bubble in world history… Everyone is in the dark… the ultimate breakdown from this environment is likely to be surprising, sudden, intense, and large.”

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Fitch Sees $3.8 Trillion Of Losses For “Investment-Grade” Sovereign Bond Investors

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– Fitch Sees $3.8 Trillion Of Losses For “Investment-Grade” Sovereign Bond Investors:

Fitch finds that a reversion of rates to 2011 levels for $37.7 trillion worth of investment-grade sovereign bonds could drive market losses of as much as $3.8 trillion..

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Under Barack Obama, National Debt Increases $100 Million Every Hour of Every Day

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Obama_debt_star

“Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren,” Obama said in a 2006 floor speech that preceded a Senate vote to extend the debt limit. “America has a debt problem and a failure of leadership.”
– Barack Obama

US-National-Debt

– Under Barack Obama, National Debt Increases $100 Million Every Hour of Every Day:

hat took other presidents more than 200 years to do, Barack Obama has done in one year, and he continues doing it year in, year out.

During the Barack Obama administration, $1.1 trillion dollars has been added every year to the national debt.

This is not exactly the legacy one would expect from a man who, as a senator in 2006 said that “increasing America’s debt weakens us domestically and internationally. Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren.”

Read moreUnder Barack Obama, National Debt Increases $100 Million Every Hour of Every Day

Get Ready For America’s New $29 Trillion Debt

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sinking-dollar

– Get ready for America’s new $29 trillion debt:

According to Jacques Necker, everything was just fine.

The year was 1781, and Necker, France’s finance minister, had just published a report called Compte Rendu au Roi, an accounting of French public finances.

Necker’s report showed that, despite extraordinary public services and military spending, France had a net credit position of +10 million livres.

In other words, the country was in perfect fiscal health.

It turns out that Necker had cooked the books.

Rather than being 10 million on the positive side, France had racked up 520 million livres worth of debt and could no longer afford to pay interest.

Read moreGet Ready For America’s New $29 Trillion Debt

“Keiser Report” Episode 945 – ‘A Banquet of Consequences: The Reality of Our Unusually Uncertain Economic Future’ (Video)

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https://www.youtube.com/watch?v=h_PGqpAs4rg

Jul 26, 2016

In this special 2016 Summer Solutions episode, Max and Stacy talk to Das, author of ‘A Banquet of Consequences: The Reality of Our Unusually Uncertain Economic Future’, about the structural changes needed to halt the decline in real wages. They also discuss financialization, economic apartheid and debt jubilees.

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