The GLOBAL sell-off of U.S. Treasuries

by Jeff Nielson, Bullion Bulls Canada This news item is much too large (and much too juicy) to cover it — and all of the ramifications — in a mere post on the Forum. Expect a major commentary on this subject. Indeed, at the end of this post I’ll pass along the title already selected, since I’m especially pleased by it. ;) Now for the news. Any regular readers of the Forum, and (most “aware” readers) would already know that China has been dumping U.S. Treasuries, somewhere near a QUARTER OF A TRILLION DOLLARS, altogether. Totally unprecedented behavior by China, and (in absolute terms) the largest/fastest sell-off of any sovereign debt, in history. But now we hear that China is far from alone here:

China has been selling U.S. debt but it’s not alone. Lots of emerging markets like Brazil, India and Mexico are also selling U.S. Treasuries. Not that long ago all these countries were all huge buyers of U.S. debt, which is viewed as one of the safest places to park money… Foreign governments have sold more U.S. Treasury bonds than they’ve bought in the 10 consecutive months through July 2015, the most recent month of available data from the Treasury Department. Just in the first seven months of the year, foreign governments sold off $103 billion of U.S. debt, according to CNNMoney’s analysis of Treasury Department data. Last year there was an overall increase of nearly $45 billion.

Keep in mind that most (all?) of what these Liars call “Treasuries buying” is simply naked money-laundering… Belgium: Money-Laundering Toilet For Unwanted Treasuries

(chart from Zero Hedge) Thus what we are being told here is that not only has the global Treasuries sell-off equaled this level of (perennial) money-laundering, it has exceeded it by a net amount of $100 BILLION, over the past 10 months. For our (so-called) sovereign governments, that is notchump-change. While this global sell-off has been taking place, we’ve been told that Treasuries are now trading at “negative” rates of interest. Let me translate this, since I have not done so recently. The “price” of any bond is directly inverse to the interest rate on that bond. The lowest theoretical rate-of-interest on any bond is (effectively) 0%. It’s actually a quantum microscopically above 0%, since (as a matter of law) any/all “0% loans” are deemed to be fraudulent transactions. This the maximum (theoretical) price for any bond is when the rate of interest is at 0%. In a legitimate market; it is not theoretically possible to have a “negative” rate of interest. Zero percent is already fraudulent. There is no rational/legitimate scenario which can be theoretically constructed where any lender would PAY a borrower to borrow its money. This means that the current “price” for U.S. Treasuries is above the maximum, theoretical price for these bonds — while the largest/fastest global sell-off of Treasuries (in history) is now taking place. Can you say F-R-A-U-D? I knew you could. ;) …and now the title for my upcoming commentary: U.S Treasuries: The Big Dump Begins. :) Of course it’s not like writing about Treasuries-fraud is a new topic around here: Maximum Fraud in U.S. Treasuries Market January 2012 The Continuing Mystery of the U.S. Treasuries Market June 2012 U.S. Treasuries: Infinite Supply = Infinite Prices? July 2012 Treasuries Sham Can’t Be Explained By ‘Voodoo Economics’ July 2012 Note that the last two items on that reading list came in response to two, high-profile writers in the mainstream media attempting to attack me, and my work. The fraud in the U.S. Treasuries market is not only obvious, it has been obvious for years. But now, as the tide goes out, it’s becoming more and more visible to others… B) The biggest American debt selloff in 15 years money.cnn.com/2015/10/14/news/economy/us…loff-2015/index.html America’s debt is getting dumped left and right as the global slowdown worsens.

Countries around the world are selling their U.S. government debt holdings this year by the largest amounts seen since at least 2000. China has been selling U.S. debt but it’s not alone. Lots of emerging markets like Brazil, India and Mexico are also selling U.S. Treasuries. Not that long ago all these countries were all huge buyers of U.S. debt, which is viewed as one of the safest places to park money. “Five or six years ago, the big concern was that China was going to own the United States,” says Gus Faucher, senior economist at PNC Bank. “Now the concern is that China is selling them.” Foreign governments have sold more U.S. Treasury bonds than they’ve bought in the 10 consecutive months through July 2015, the most recent month of available data from the Treasury Department. Just in the first seven months of the year, foreign governments sold off $103 billion of U.S. debt, according to CNNMoney’s analysis of Treasury Department data. Last year there was an overall increase of nearly $45 billion…

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