June 19, 2009

The United States is going to try to pawn off $120 billion in T-bonds next week. Uh, good luck with that.

You can fool some of the people all of the time, and all of the people some of the time, but you cannot fool all of the people all of the time.

Seriously, who the f*ck would be dumb enough to buy these, at yields of 0.15% - 3.82%?

No, seriously. Who the f*ck would be dumb enough to buy these?

Besides Bernanke of course.

$31 billion in 3-month bills
$27 billion in 7-year notes
$40 billion in 2-year notes
$37 billion in 5-year notes
$30 billion in 6-month bills


Anonymous said...

Not me. Maybe some persian
gulf countries now that Iran
is unstable and oil prices
are up a bit ? We shall
see. BRIC countries don't
seem all that excited about
buying anything longer
than 2-3 years. Any more
quantitative easing (money
printing) may make things

WizardofIB said...

I'll buy them if 'bama's face is on them. Who cares about the end value? Think about it as a collectible. Does anyone remember who many of those Lion King Simba Cookie Jars they sold on QVC? Seen here

Go long on bonds!

The Wiz

Anonymous said...

A couple of Japanese tourists en route to Switzerland might be interested.

Ross said...

Buy now or be priced out forever!

Anonymous said...

The auction will sell out in record time. Better not be short treasuries or the USD. The Great Deleveraging part II is about to commence. Obama told Geithner to get it over with, now that GM and Chrysler are in the bag. Bernanke will only step in if China, the Japs, or the UAE get cold feet.

Anonymous said...

How will President Barack Obama fund his proposed health care program.

Will the US treasury need to sell more T-bonds to fund the health care program if Congress do not vote to raise taxes.


Why High Health Costs Hurt Economy

keith said...

The japanese smugger bonds were fake (no matter what world net daily tells you).

And if this auction goes off without a hitch, and yields don't rise, I'll be shocked.

Yields must rise.

Big time.

Saul said...

shit, meet fan.

Anonymous said...

IMHO, this is where two giant forces meet. The Fed will demonstrate how willing it is to "print money" for the purpose of buying Treasuries at artificially high prices to keep long term yields low. By doing so, it raises the risk of stagflation within the U.S. On the other side of the coin, foreign central banks make a decision on what to do with their money (my guess is that with super low yeilds, the will take their funds and improve their own situations at home but who knows).

Tangelo Mozilo said...

Ross said...
"Buy now or be priced out forever!"



casey said...

I really wonder who is buying this crap.Makes no sense at all.The govt is obviously buying their own shit to keep rates low for all those overpriced homes.

i've had it said...

The Treasury has some trick up its sleeve. They've convinced more suckers and co-conspirators (China, Japan, the Arabs, and TARP banks) to buy these bonds to keep the "kumbaya" feeling going.

I don't see how they would plan to sell so much without being sure it will get picked up.

As we implode due to a debt bubble, the Feds sell more debt.

We are continuing on the road to serfdom...

Anonymous said...

It's OK guys. Calm down. Obama said he's going to balance the budget and give everybody cheese.

Charles said...

8-9% mortgage rates by the end of 2010 (if not sooner)

Deflation is looming like that smoke monster on LOST.

Not tat I watch the show but it just sounds cool ;-)

Anonymous said...

oh, in a couple of months 120 Billion will seem like chump change. at the rate BO is spending, we will need some 200+ billion months. actually, a large number of 200+ billion months.

funny thing is, the destruction of credit continues to outpace the government increases in spending.

Anonymous said...

I really wonder who is buying this crap.Makes no sense at all.The govt is obviously buying their own shit to keep rates low for all those overpriced homes.

countries that have a significant positive trade balance with the USA must buy this if they want to keep the merry-go-round going.

eventually the music will stop and everyone will find that ALL the chairs were removed while the music played.

partypup said...

"The japanese smugger bonds were fake (no matter what world net daily tells you)."

Okay, let's play with that theory. Because acknowledging that the bonds are counterfeit does not put an end to this story. The counterfeit bonds theory presumes that someone, somewhere, has the ability to counterfeit U.S. bonds in denominations of $500 million or more (normally issued only to central banks) - bonds that are so expertly printed that authorities everywhere actually assumed them to be completely authentic for more than a week.

If that is the case, then the events in Italy are evidence of sophisticated economic espionage and an attempt by a (hostile) foreign power to undermine US economic power:

"In other words, somebody wants to destabilize the US bond markets by spreading the word that US bonds can be forged, but that “the quality of the counterfeit work is such that the fake bonds are undistinguishable from the real ones ” (as the original report put it). Raising legitimate concerns about the ability to withstand counterfeiting efforts is a sure-fire way of sabotaging a currency.

It wouldn’t be the first time that such a strategy has been used to destabilize an enemy power. During World War II, Hitler launched Operation Bernhard to crash the British war economy. By the end of the war, it had produced 132 million expertly counterfeited British pounds – a sum that represented about 15% of all British pounds in circulation at the time. The British ran a similar counterfeiting operation against the Nazis.

It seems careless, to say the least, to get caught with $134.5 billion dollars worth of securities by a regular inspection on a train. We’ve already ruled out that this wasn’t an official state operation (otherwise the bonds would have traveled in a diplomatic pouch). So it’s certainly odd that people sophisticated enough counterfeit or steal $134.5 billion worth of US government bonds couldn’t think of a safer way to transport them.

The implication is the “Japanese” interlopers wanted to be caught. And they wanted the world to know that US bonds could be so expertly forged.

Who would want to destabilize US economic power? Who would have the technology and the know-how to print such convincing forgeries? Who is a declared enemy of the US? Who might have “Japanese” looking agents working for them? North Korea would have to top the list of suspects…"

We've got a lot of enemies, dude, and the takedown of the U.S. dollar has BEGUN.