that is such a great graph and commentary!
The US dollar stewards are NOT demonstrating control, discipline, or even anything remotely resembling honesty or integrity. The US Dept Treasury wants to continue funding the federal deficit, and, for yucks, add any and every conceivable new program onto the books while the federal insolvent bankruptcy makes marginal additions not so noticeable.
The US Fed engages in almost immediately permanent operations to snag the primary dealer US Treasuries gatherings bid at auction, for a simple shell game shuffle. The US Fed engages in a sneakier but still obvious hidden bidder game with foreign central banks. They use US Dollar Swap Facilities (with gargantuan funds) and bid heavily on the US Treasuries, evidence being the ‘Indirect Bid’ component. If not for the US Fed buying most of the US Treasuries issued, the long-term interest rates would be rising quickly and with alarm. If not for the US Fed heavy buying, the US Dollar would be doing a swan dive off a cliff into rough waters. As has been claimed in past work, the US Govt stewards of the wrecked buck can save the US Treasury or save the US Dollar, but not both. Their monetization efforts here and abroad indicate a clear intention to save the US Treasury Bond.
Last edited by floridasandy; 08-21-2009 at 04:06 PM..
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