Posted on 02/16/2010 9:44:21 PM PST by Shellybenoit
Led by China, foreign countries dumped U.S. Treasury bills at a record rate in December, which could signal a rise in interest rates to make the bills more attractive to investors. The interest rate rise which could be the beginning of an inflationary period. According to the Treasury Department foreign holdings of U.S. Treasury bills fell by a record $53 billion in December. That topped the previous record drop of $44.5 billion in April 2009.
The move triggered concerns about China's continuing appetite to loan money to the U.S. amid a mounting budget deficit here and tensions between Washington and Beijing.
China pared its Treasury holdings by $34 billion to $755.4 billion in December, placing it second behind Japan, with $768.8 billion, according to U.S. Treasury estimates. For the first time since August 2008, Tokyo took over the top spot after steadily increasing its purchases of Treasury debt over the past several years.
(Excerpt) Read more at yidwithlid.blogspot.com ...
Obama’s goons are trying to destroy toyota for the UAW and Jpana could cut back their treasury purchases.
Timing is suspicious about Toyota’s recall imo. A guy I know just got a new Camry SE and it’s really nice.
Ping
It is all about hurting transplants with non-union factories in the USA. The UAW’s other point of attack is to beat the companies up then try to force them to unionize their plants.
Don’t be suprised if Toyota surrenders and allows UAW thugs in their non-union plants.
GM and Chrysler are zombies and the UAW knows eventually both will die. Those UAW parasite “workers” will need another host to attach to.
Just over half of what we owe Japan is payble in yen, so there’s no printing that away. That is, of course, not to say that printing it away is a great idea anyway.
I heard that $6.4T of the public debt is owed to our own government. I haven’t seen any detailed breakdown of it, but a good chunk of that could be what’s owed to the SSI trust fund.
Thanks for the ping you know I wouldn’t want to keep buying them either obama gave another back door bailout on fannie/freddie before he flew off to Hawaii and that’s $6.3 Trillion we are looking at. They are also furious about the dali lama and they know they are toxic they can read.
http://www.bloomberg.com/apps/news?pid=20601110&sid=aqifb.wX_npo
The Federal Reserve is poised to turn off a major money spigot that has helped sustain the ailing real estate sector, as an extraordinary program under which the Fed has pumped $1.25 trillion into the mortgage market is slated to end March 31.
“The FHA portfolio has all sorts of bad debt in it,” Thornberg said. “Eventually they’ll have to pull back” on lending.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/02/15/MNSP1BVILP.DTL#ixzz0fiKYcw8o
Senior officials in the Obama administration and at the Fed say they are counting in part on foreigners to keep the housing market funded.
But financial analysts and advisers familiar with foreign government funds, known as sovereign wealth funds, predicted that the United States will get limited relief from abroad.
Sovereign wealth funds are pools of money used by governments to make investments. The largest belong to big exporters such as China and the oil-rich monarchies of the Persian Gulf that accumulate trade surpluses.
The securities issued by government-sponsored enterprises such as Fannie Mae and Freddie Mac are not debts of the U.S. government but do carry an implicit guarantee that the companies will not default. In December, the government carried that a step further, saying it would not limit the amount of money made available to keep the firms solvent.
Senior U.S. officials said the goal was to reassure buyers of the companies’ mortgage securities that they were safe. “That’s particularly true for foreign investors,” said Eric S. Rosengren, president of the Federal Reserve Bank of Boston.
http://www.washingtonpost.com/wp-dyn/content/article/2010/02/15/AR2010021503143.html?hpid=topnews
It’s actually more money then the ap/cnn are reporting
http://www.zerohedge.com/article/quick-associated-press-math-lesson-not-same
I will never buy thug motors cars.....maybe a used one if I’m desparate.
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