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Old 02-08-2010, 09:46 PM
 
Location: down south
514 posts, read 1,406,958 times
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Brace For Impact: In 2010, Demand For US Fixed Income Has To Increase Elevenfold... Or Else | zero hedge

Look at option three, look what's happening, look what triggered what's happening, look who pulled the trigger that triggered what's happening and look who had most influence on who pulled the trigger that triggered what's happening.
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Old 02-09-2010, 09:33 PM
 
Location: Planet Eaarth
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Old 02-10-2010, 09:53 AM
 
Location: down south
514 posts, read 1,406,958 times
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The bottom line:
the whole market panic on Greece and other Southern European countries, all the talk about China's bubble, the threat of downgrading Japan and stuff all, especially given the timing at which the flood of negative news about everybody else except for the US happened, sound like a giant conspiracy to scare capital into the warm embrace of supposedly 100% safe US treasury. Basically, facing with a gaping hole, the government has no choice but to engineer a big buzz to convince the market that everybody, including the stock market itself, is in sh*thole except for the US treasury. I don't mean to say there are no problems for everybody, but the fact that all these happened all at the same time and all could trace their origins to some remarks, reports and analysis done by rating agencies, hedge fund managers, etc. in another word, people on whom the treasury has a great deal of influence, reeks of conspiracies to suck money out of the market to fund the deficit.
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Old 02-10-2010, 02:13 PM
 
22,770 posts, read 25,209,535 times
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I read the article. I thought it was very interesting, although I admit I only understood it partially.

do I understand it correctly, to say that the U.S. has great control over the "flight to risk / flight to safety" component of the equity markets right now, and that when the time comes, they will kill the equity market in an attempt to recreate "flight to safety" conditions, and generate domestic demand for treasuries?
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Old 02-10-2010, 02:26 PM
 
Location: down south
514 posts, read 1,406,958 times
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Quote:
Originally Posted by rubber_factory View Post
I read the article. I thought it was very interesting, although I admit I only understood it partially.

do I understand it correctly, to say that the U.S. has great control over the "flight to risk / flight to safety" component of the equity markets right now, and that when the time comes, they will kill the equity market in an attempt to recreate "flight to safety" conditions, and generate domestic demand for treasuries?
We don't know what's going on behind the scene or if there were intentional moves to lure capital into treasuries. But the 1.6 trillions deficit for 2010 must be funded some way, which gives the government powerful incentives to do what's described by you. We don't know if the government is capable of doing this or if it's actually doing it, but there is no denial that the incentive is there.
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Old 02-10-2010, 02:28 PM
 
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Which country is truly belly up but ain't fessing to the truth?

Hmmmm.... which shall it be??
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Old 02-12-2010, 10:46 AM
 
17,750 posts, read 15,038,702 times
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Well, once again people don't understand what a dollar is. Its debt. If consumers and businesses don't go into debt, then unless the government goes into debt while the Fed buys back treasuries, the money supply must shrink. We are almost at 2006 levels in consumer debt. That means consumer debt has been shrinking. Has it helped? Of course not, because solvency in a debt based currency is nothing but a mirage. My hat is off to the banking cartel. They have found a shell game the average person cannot understand though I have tried many times to make people understand. See for yourself. As we pay down debt, the government must increase it, otherwise the spectre of depression would loom.

FRB: G.19 Release--Consumer Credit--February 5, 2010

Nothing has changed. Assets acquired by debt will continue to sag, aka real estate, while other liquid assets not acquired by leverage will stay at a premium.
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Old 02-12-2010, 04:03 PM
 
22,770 posts, read 25,209,535 times
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Quote:
Originally Posted by gwynedd1 View Post
Well, once again people don't understand what a dollar is. Its debt. If consumers and businesses don't go into debt, then unless the government goes into debt while the Fed buys back treasuries, the money supply must shrink. We are almost at 2006 levels in consumer debt. That means consumer debt has been shrinking. Has it helped? Of course not, because solvency in a debt based currency is nothing but a mirage. My hat is off to the banking cartel. They have found a shell game the average person cannot understand though I have tried many times to make people understand. See for yourself. As we pay down debt, the government must increase it, otherwise the spectre of depression would loom.

FRB: G.19 Release--Consumer Credit--February 5, 2010

Nothing has changed. Assets acquired by debt will continue to sag, aka real estate, while other liquid assets not acquired by leverage will stay at a premium.
I do understand that we are replacing consumer debt with government debt.

I don't quite understand how this gets at any of the particulars in the article.
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Old 02-12-2010, 04:19 PM
 
Location: western East Roman Empire
6,112 posts, read 10,160,882 times
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I know I'm not supposed to cross-post, but this is from the FT/Greece thread, and it may be appropriate here as well.

Quote:
Quote:
Originally Posted by floridasandy
it isn't just greece-but all the PIG countries, or PIIG countries if you add italy. germany can't afford to bail out everybody.
Actually PIIIG, Ireland, Iceland, Italy.

Italy has been on the brink of financial disaster since the early 1990s, Portugal's economy known to be uncompetitive since at least the late 1990s, the Greeks have been stealing since they entered the EU, really nothing new here, Iceland is too small to really count, maybe Spain and Ireland are a disappointment.


The big speculators are mainly in the US and the UK. Sometimes they chip away at themselves, at the moment they are chipping away at the periphery.

True, productive Germany cannot afford to keep subsidizing the laggards and the US-UK banksters will feed off their own financial systems only up to the point where they risk their own dominance, for as long as there is no single entity or group capable of seriously challenging them.

It's a high-stakes game, we'll see if a tipping point is reached that would visibly alter the balance of power.

Good luck as the upshot hits the ground!
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Old 02-12-2010, 05:56 PM
 
Location: Great State of Texas
86,093 posts, read 69,929,185 times
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Quote:
Originally Posted by rubber_factory View Post
I read the article. I thought it was very interesting, although I admit I only understood it partially.

do I understand it correctly, to say that the U.S. has great control over the "flight to risk / flight to safety" component of the equity markets right now, and that when the time comes, they will kill the equity market in an attempt to recreate "flight to safety" conditions, and generate domestic demand for treasuries?
Keep on reading stuff like this though; eventually you understand more and more each time. Then the light bulb goes on.

A few mere word of dire warnings and predictions by US voices sends investors panicing and when they panic they sell and then turn around and buy US Treasuries. Buying US Treasuries allows us to print up more funny money to toss at Wall Street.

Biggest ponzi scheme in history. And we're living throught it !
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