World economy talk

[safeorigin]

hmmm... people missed all the action here

[ame="http://www.youtube.com/watch?v=GFrBpBmkgjM"]YouTube- Keiser Report: Global Death Spiral[/ame]

[uls]

didnt miss anything

same old Max Keiser

evil corporations rule the world

more a source of entertainment than information

[safeorigin]

apparently, it's the best show in the planet whenever Top Gear isn't airing ^^

(entertainment-wise ofc)

[safeorigin]

[ame="http://www.youtube.com/watch?v=Q4PC8Luqiws"]YouTube- Overcome Stress By Visualizing It As A Greedy, Hook-Nosed Race Of Creatures[/ame]

[uls]

Originally Posted by safeorigin
kinda like... US treasuries

they keep on pumping them even if there is no increase in demand ^^

there is

actually some people are calling it a bond bubble

as everyone knows, when demand for treasuries rise, rates fall

US 10 yr treasury yield


US 30 yr treasury yield

[uls]

10 yr note Sept futures


T bond Sept futures

[tidus1203]

Bonds are very attractive to many people right now especially emerging market bonds which give higher yields... Parking money in cash is non-sense giving QE2 is around the corner. Equities and commodities are so volatile that capital preservation is very difficult on such an environment...

[silverrain]

Oil at USD71.63 nalang!

Will it break the $70 barrier? soon?

[safeorigin]

right...

they just keep it artificially low since the US government buys its own bonds

[uls]

the USG issues debt

the Fed prints money to buy the debt

QE

--

the USG issues debt

the TBTF banks buy the debt using money provided by the Fed

stealth QE

--

the USG issues debt

the Fed uses income it got from its portfolio of mortgage-backed securities to buy the debt

QE lite

[uls]

and what's happening now is this --

since the Fed is buying treasuries, everyone is frontrunning the Fed

meaning everyone is rushing to buy treasuries with the goal of selling the treasuries to the Fed later on for a profit

hence the price/yield of US treasuries we see now

that's why some are calling it a bond bubble

[uls]

and what's happening now is this --

since the Fed is buying treasuries, everyone is frontrunning the Fed

meaning everyone is rushing to buy treasuries with the goal of selling the treasuries to the Fed later on for a profit

hence the price/yield of US treasuries we see now

that's why some are calling it a bond bubble

[silverrain]

Watch what China will do with it's treasuries. That could spark the HI.

[uls]

notice China has reduced its US treasury holdings

http://www.ustreas.gov/tic/mfh.txt

$843.7B as of June 2010

compare that to $915.8B June 2009 (and $939.9B July 2009)

they diversified into Japan and Korea govt bonds

but China is still the biggest holder of US treasuries

--

the bursting of the bond bubble could trigger HI

it doesnt even have to be China

some TBTF bank could simply decide it's time to get out

sell treasuries, buy commodities

a spike in commodities prices could collapse the bond bubble

the bond bubble is scary

[niky]

notice China has reduced its US treasury holdings

http://www.ustreas.gov/tic/mfh.txt

$843.7B as of June 2010

compare that to $915.8B June 2009 (and $939.9B July 2009)

they diversified into Japan and Korea govt bonds

but China is still the biggest holder of US treasuries

--

the bursting of the bond bubble could trigger HI

it doesnt even have to be China

some TBTF bank could simply decide it's time to get out

the bond bubble is scary

So, first we get screwed by the hedge fundies playing with oil.

Then we get screwed by the banks playing with properties.

Now we'll get screwed by governments playing with bonds?

Brilliant!

The only ones who haven't screwed the global economy yet are the churches!

(imagines headline: Gold market collapses. Vatican floods the market with 20 centuries' worth of gold treasures in order to raise funds to build new cathedrals...)

[safeorigin]

hmmm... triple digits anyone?

[safeorigin]

hmmm...

[SIZE=2][SIZE=2]This present window of opportunity, during which a truly peaceful and interdependent world order might be built, will not be open for too long - We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order.[/SIZE][/SIZE]

-David Rockefeller

[silverrain]

Once the TBTF banks go on a selling frenzy expect China to do the same. After that, all hell will break loose.

[uls]

So, first we get screwed by the hedge fundies playing with oil.

Then we get screwed by the banks playing with properties.

yep

Now we'll get screwed by governments playing with bonds?

we'll get screwed

Brilliant!

The only ones who haven't screwed the global economy yet are the churches!

(imagines headline: Gold market collapses. Vatican floods the market with 20 centuries' worth of gold treasures in order to raise funds to build new cathedrals...)

hehe

the Fed is in the bond market to hold down rates so the USG can borrow cheap

the USG can keep issuing treasuries and not worry about oversupply (causing rates to rise) coz the Fed is there to absorb everything the US Treasury Dept can vomit -- the Fed simply creates money to buy the treasuries

and investors keep piling into treasuries coz the Fed is there supporting prices

something just isnt right about all this

this can't go on forever

this can end badly

[uls]

Once the TBTF banks go on a selling frenzy expect China to do the same. After that, all hell will break loose.

yep

all hell can break loose

we just don't know when