It's gold Jerry, gold!
Posted on 08/14/2008 12:13:40 AM PDT by TigerLikesRooster
Some of the posters on this thread are questioning the large foreign purchases of U.S. debt that led to the spike in the U.S. $. The news to back up my statement is out there, but it’s certainly hard to find. Here’s a statement by a financial news service, it’s copyrighted and subscription only and cannot be linked to:
“The Fed has reported that in the week ending August 6, foreign institutions made the largest net purchases of U.S. debt ever recorded. The foreign banks buying U.S. Treasurys caused a sudden shortage of U.S. Dollars, as a result the dollar leapt up 3% in 48 hours.”
Like I said in my original post, there’s no smoking gun linking this to Russian money, but there is adequate circumstantial evidence that points in that direction. I’d guess Russian well connected oligarchs are savvy enough to not leave their footprints all over the transactions.
I tried looking on the Federal Reserve site for the info alluded to above, but there’s so damn much data, I’m not familiar with their website and how to find what I’m looking for........and I’m out of time to do so.....looks like Tropical Storm Fay, soon to be Hurricane Fay, is going to be paying us a visit in the Florida Keys on Monday afternoon and I’ve got preparations to take care of.
IOW, you can't produce anything to back up your assertion. Fine. I think what was being argued are the amounts you mentioned. They aren't enough to cause a major reversal in the dollar trend.
Something is definitely causing the dollar to rally. Most likely the possibility of an economic slowdown is other countries.
That depends, how many "improve your gas mileage units" has ex-Texan sold?
Today's parting words from gold market analyst Ned Schmidt. He tenders an explanation for the dollar's rally that may not make the conventional headlines, but it is one you might want to take note of. "As is readily evident, the U.S. dollar has staged an incredible rally. That rally is one of the strongest to occur without some underlying causal event. In short, nothing readily apparent is happening around the world to cause such a move. Now, consider the weekly purchases of U.S. debt by official institutions, essentially central banks around the world. These numbers are reported weekly by the Federal Reserve, the depository for these bond holdings. In the week ending Wednesday, official institutions made the largest net purchase of U.S. debt ever recorded. They bought the annualized equivalent of $1.457 trillion. Those purchases created a shortage of dollars which created a massive short covering rally in the dollar. That buying pushed the dollar up almost 3% in the past week, or at a 320% annual rate."
Interesting (silly) theory that a purchase of $50 billion in Treasuries (with dollars they already held) would cause a shortage of dollars, but when gold is tanking, I guess a guy who sells gold needs to explain why it's not his fault (it's the foreigners).
Good luck with the storm.
First, a shortage of dollars was created which caused value of dollar to spike upward. Second, as payments for those bonds were made, a massive amount of liquidity flowed into the Street. That excessive liquidity quickly flowed into financial markets, causing a 300+ point DJIA rally.
Wow, the dollar shortage added massive liquidity (that'd be dollars) to the Street.
LOL!
This guy is a CFA? That's funny!
I found the article you're referencing. The guy even looks like a used car salesman. The internet seems to be full of these gold peddlers. Where were they when gold was at $400?
It's gold Jerry, gold!
“””IOW, you can’t produce anything to back up your assertion”””
The news bit I posted there came off Dow Jones Newswire, which I pay a monthly fee for and it comes across my stock trading platform as streaming news. I can’t cut and paste it and I can’t link to it, however if you have access to DJ Newswire you can find the bit on August 7, streaming news, at around 2:20 pm EST.
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