$75 Billion in New Treasuries on Deck Momentarily

If you missed your chance to stock up on double ply UST (T is for toilet) paper, fear not: you will have another chance to buy some again... and again... and again. The first opportunity will be on August 11th and 12th, when a total of $75 billion pieces of paper, backed by another rapidly deflating piece of paper will be made available for your indirect (or is that direct?) auction pleasure.

Specifically:

$37 Billion in Three Year Notes;

$23 Billion in Ten Year Notes;

$15 Billion in Thirty Year Notes;

And here is how America became $304 billion dollars more indebted to China (and Itself compliments of monetization), since July 24 (click to enlarge). That's almost a third of a trillion in new debt issued in under a month.

Comments

[doubleguns:]

This winter we can all heat our homes with dollars if you have a fire place.

Aug 06 01:21 PM

[The Hammer:]

How much of the $75 bill will the fed be bidding on?

Aug 06 01:27 PM

[debtacid:]

I wonder if us hapless Americans will wake up at some point and demand our gold and silver back. At least it's nice to finally see the bankers behind the curtain being exposed and subjected to some real political heat for a change.

Aug 06 01:31 PM

[Donald Ingram:]

First 'Law of Economics'.
ALL DEBT WILL BE PAID.
Either by the debtor or by the lender.
Either with pennies worth dollars or with dollars worth pennies.
The day of reckoning is coming. Not a question of 'if', it will come sooner or later. And when it does the suffering of the American people will be immense. The longer it is put off the greater the suffering will be. Prepare now while there is still time. So precious little of it left.

Aug 06 01:35 PM

[Mark Bern:]

China needs to keep the US in business so they can keep selling us all their stuff. China also needs raw materials. If they spend today to stimulate their domestic economy by building infrastructure they will forgo the loss on their US$ denominated suprluses. Then they let the Yuan float and increase in value against the US$ and Euro and continue buying up more and more natural resources around the world at deflated prices that are denominated is US$ and Euro. They can also continue to buy US Treasuries with fewer Yuan.

Of course, they'd rather go back to the way things were, but I don't think they are as stupid as we suspect. Our government, on the other hand...

Aug 06 02:15 PM

[Swashbuckler:]

Nice one hammer.


On Aug 06 01:27 PM The Hammer wrote:

> How much of the $75 bill will the fed be bidding on?

Aug 06 03:11 PM

[newamericanow:]

The problem will occur when they have trouble getting buyers for this fiat money. The Federal Reserve is covertly loaning foreign central banks money to purchase these so it doesn't look like they are buying their own money.

Aug 06 03:29 PM

[Mad Hedge F...:]

So much paper! Ben Bernanke’s hands are so tightly tied that there is little he can do to head off stagflation, that recurring nightmare from the seventies. The $1 trillion he has added to the monetary base is certain to bite back the second there is an uptick in bank lending. Government crowding out has to push bond interest rates a lot higher. A budget deficit of 13% of GDP this year is about as inflationary as you can get. It’s time to take another look at gold, silver, and the short US Treasury bond ETF (TBT), which I recommended at the beginning of the year at www.madhedgefundtrader... before its awesome 70% run.

Aug 06 03:57 PM

[optionsgirl:]

or a metal garbage can!


On Aug 06 01:21 PM doubleguns wrote:

> This winter we can all heat our homes with dollars if you have a
> fire place.

Aug 06 04:04 PM

[doubleguns:]

OG your right. I forgot about the poor and homeless standing around the burn barrels. Now it will be the poor with a home less valued standing around the garbage can in the living room.

If anyone asks we are just cooking "squab on the barbie". (pigeon over the trashcan)

Aug 06 04:33 PM

[fleeing omega:]

Question on my mind: how much UST can the Fed suck up before something goes spectacularly wrong with that particular scheme?

(insert image of Mr Creosote)

Aug 06 04:34 PM

[Roger Knights:]

"The Federal Reserve is covertly loaning foreign central banks money to purchase these so it doesn't look like they are buying their own money."

Man oh man. If all this pump-priming doesn't "catch," we're going to be left bone dry.

Aug 06 06:14 PM

[Roger Knights:]

PS: Here's a chilling thought regarding why China keeps buying our debt: They're playing a geo-political game, not a monetary one. Sheldon Richman (I think that's his name--he's a columnist here) has suggested that they are "enabling" us so that we dig ourselves into an insurmountable hole and they have a monumental grievance against us that they can use to extract global-chessboard concessions from us--and the West in general. That's their long-run payoff.

Aug 06 06:18 PM

[JPSmith:]

If you believe equities are going to crash again this fall, do you want to buy TBT now?

Aug 06 06:49 PM

[BlueFielder:]

Uhhh... that's what Yanks have been doing for the last 10 yrs. We CDN's on the other hand just sell every house/buidling that we build directly to the chinese. You're sorta doing the same. But with a 2 step process. In the end...they're gunna own ya. They no big stupid. Love you for long time.

On Aug 06 01:10 PM optionsgirl wrote:

> Soon it will be time to go into the real estate market. buy bricks
> and mortar with play money.

Aug 06 06:53 PM

[Moon Kil Woong:]

China has noticed. Note the fact the Treasury is finding it almost impossible to issue long term notes and the rates are rising alarmingly. The whole market has noticed. Also note the recent rapid decline of the dollar. This is getting serious.

Aug 06 09:40 PM

[De Graaf:]

I'm thinking about building a pyramid of papier mache. If you have some diluted greenback paper left...send it to Robby in Holland. ;)

The US has gone absolutely bananas!

Why isn't there a revolution yet? Demand a stop to this insanity and wealth dilution. For heavens sake people...NOW!

Aug 07 08:50 AM

[Allan Frain:]

Better phrased--Would you EVER bid against a money creation machine for the purchase of ANYTHING, particularly when such auction lot has zero intrinsic value, but represents a form of promise from ponzi operators who are peerles in the history of mankind ?


On Aug 06 06:49 PM JPSmith wrote:

> If you believe equities are going to crash again this fall, do you
> want to buy TBT now?

Aug 07 09:30 AM

[digitaldorobo:]

What the hell are you talking about?

I moved from Alberta to Nova Scotia and in neither province have I heard that we 'sell every house/building that we build directly to the Chinese.' Now, if you mean the Vancouver, B.C. area, then yes, there are many Chinese there. However, don't make such generalized statements--it makes you sound an immature sensationalist and racist.

Try to represent your country with a little more pride.


On Aug 06 06:53 PM BlueFielder wrote:

> Uhhh... that's what Yanks have been doing for the last 10 yrs. We
> CDN's on the other hand just sell every house/buidling that we build
> directly to the chinese. You're sorta doing the same. But with a
> 2 step process. In the end...they're gunna own ya. They no big stupid.
> Love you for long time.
>
> On Aug 06 01:10 PM optionsgirl wrote:

Aug 07 09:38 AM

[KiserSensay:]

Everyone is called mutually assured destruction therefore China continues to buy US issued debt out of necessity.

Aug 09 09:59 AM