Who Is Buying All The US Agency Debt?

Posted: Oct 14 2010     By: Dan Norcini      Post Edited: October 15, 2010 at 12:01 am
Filed under: Trader Dan Norcini
Dear Friends,
The ominous trend continues in the US Agency Debt market as Foreign Central Banks continue to divest themselves of it at an alarming pace. Holdings are now at a 39 month low. The question can be raised – who is buying all of this debt that is being unloaded on the market?
Click image to enlarge today’s Agency Debt chart in PDF format with commentary from Trader Dan Norcini


Click image to enlarge today’s Custodial Holdings of Treasuries for Foreign Central Banks chart in PDF format with commentary from Trader Dan Norcini




Jim Sinclair’s Commentary
1. Bernanke confirmed the use of Management of Perception Economics and defines it as “communication”. Then he plays the MOPE hand and the sheeple fall for it.
2. The Banksters today blamed homeowners for foreclosure problems. I guess that means homeowners should pay anyone even if they have no legal claim to their home.

Jim Sinclair’s Commentary
Are you prepared for distribution problems common to currency induced cost push inflation and its poorly considered symptom remedies?

Fuel supply to Paris airports cut amid pension strikes 15 October 2010 Last updated at 11:12 ET
Fuel supplies to Paris’s main airports through a major pipeline have been cut off amid strikes over pension reforms.
The company that operates the pipeline told French media that the capital’s main airport, Charles de Gaulle, could run out of fuel as early as next week.
There are fears of fuel shortages as all of France’s 12 oil refineries have been hit by strikes, and many oil depots remain blockaded.
Unions are opposed to government plans to raise the retirement age.
Trapil, the firm that operates the pipeline to Paris’s airports, said supplies had been cut off on Friday.
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Jim’s Mailbox

Posted: Oct 15 2010     By: Jim Sinclair      Post Edited: October 15, 2010 at 11:31 am
Filed under: Jim's Mailbox
Bernanke: Fed wrestles with size of aid program CIGA Eric
"Whatever it takes" rather than the illusion of “wrestling” as a description of the size of the aid program would be a better representation of the actions in the coming months and years. The game of controlled devaluation, based largely on the management of perception rather than reality, demands the more subtle headline. The Fed also suggests that jawboning or communication (backed by the printing press) could be used a tool manage perceptions. When communication is completely divorced from action, it’s half-life of effectiveness deteriorates quickly.
Federal Reserve Chairman Ben Bernanke says the central bank is prepared to take steps to rejuvenate the economy through the purchase of Treasury bonds but is wrestling with how big the program should be.
Bernanke also says the Fed could use its communications powers to prevent the United States from slipping into a deflationary spiral.
But Bernanke says the Fed must proceed cautiously in deciding how big a program to buy Treasury debt should be. Bernanke said it is a challenge for Fed policymakers to determine the size of the program and how the debt purchases would be paced.
Source: finance.yahoo.com
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Jim,
There is no need for a cost of living increase for retirees if you believe in MOPE spin.
Just suck it up until the day they use real inflation numbers such as those provided by John William’s great service at www.ShadowStats.com.
Of course that will happen when hell freezes over. Until then the Angels will be pulling gold to much higher prices.
CIGA "The Gordon"





Social Security benefits will remain flat for 2nd straight year, government says By Amy Goldstein
Washington Post Staff Writer
Friday, October 15, 2010; 10:25 AM
For the second year in a row, the nearly 54 million retirees and other Americans who receive Social Security benefits will not get any cost-of-living increase in 2011 in their monthly checks, government officials announced Friday morning.
The absence of any growth in Social Security checks for consecutive years is unprecedented in the 3 1/2 decades that payments have been automatically adjusted according to the nation’s inflation rate. The Social Security Administration made the announcement moments after the Labor Department released the latest figures for the consumer price index. They show that prices for the third quarter of this year rose by 1.5 percent compared with a year earlier, but fell by 0.6 percent compared with the same time in 2008.
In a symptom of the weak economy, last year marked the first time since the automatic formula has existed that consumer prices fell, so Social Security recipients were given no increase in their checks.
This year, the picture is more complicated – and likely to produce louder complaints over the lack of a cost-of-living increase.
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