We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Saturday, June 18, 2011

After Dumping 30% Of Its Treasury Holdings In Half A Year, Russia Warns It Will Continue Selling US Debt

Submitted by Tyler Durden on 06/18/2011 17:04 -0400

Just in time for the end of QE2, when the US needs every possible foreign buyer of US debt to step up to the plate, we get confirmation that yet another major foreign central bank has decided to not only not add to its US debt holdings, but to actively sell US Treasurys. The WSJ reports that "Russia will likely continue lowering its U.S. debt holdings as Washington struggles to contain a budget deficit and bolster a tepid economic recovery, a top aide to President Dmitry Medvedev said Saturday. "The share of our portfolio in U.S. instruments has gone down and probably will go down further," said Arkady Dvorkovich, chief economic aide to the president, told Dow Jones in an interview on the sidelines of the St. Petersburg International Economic Forum." Well, with Russia out, at least we have China and Japan continuing to buy US debt.... Oh wait, China is contemplating dumping two thirds of its debt you say? And the biggest buyer of Japanese bonds is now in the process of selling Japanese bonds in the open market for the first time (so not really in the market of US bonds). Well, surely US households will step up to the plate. After all they all have so much "cash on the sidelines" courtesy of the Recovery^TM ^©® that they can't wait to dump it all into paper yielding less than 3% a year, and has negative real rates of return. Wait, what's that: according to the Fed, in Q1 US "households" sold $1.1 trillion annualized in Treasurys to the Fed? So, let's get this straight: China, Japan, and now very much openly Russia, the three countries with the largest financial reserves in the world, are threatening, if not already dumping US bonds, just in time for US households to sell their holdings of US paper to Brian Sack. And this is happening 2 weeks before QE2 ends... Um... Are we and Bill Gross (and certainly not Morgan Stanley) the only ones to see a problem with this?
More on the latest confirmation that the time of US superpower supremacy has ended...

Why Should The Germans Pay For The Greeks?

posted by Admin at Jim Rogers Blog - 2 hours ago

Why should a good, honest German taxpayer, a guy who saved his money, suddenly get a bill from the German government saying you have got to pay for some Greeks sitting on the beach drinking ouzo? That's ab...

Guest Post: Is 2011 The Present Era's 1979?

Submitted by Tyler Durden on 06/18/2011 17:43 -0400

Another revolution in China is impossible, you say? Please step this way into the time machine and return to 1979. The year is usually remembered for the Iranian Revolution, and many commentators are comparing the current "Arab Spring" revolts to the systemic changes unleashed in 1979. More interesting is the case of the Soviet Union in 1979, which appeared to all eyes as a permanent, stable political entity. The U.S.S.R. invaded Afghanistan on December 24, 1979, but that only seems noteworthy looking back from the present. At the time, there was still concern in the West that the U.S.S.R. would launch a blitzkrieg attack to conquer Western Europe. One-party systems lack the mechanisms for adaptation, and thus they are exquisitely ripe for revolution and implosion. Democracies and republics tend to have periods of low-amplitude instability (witness Greece right now) that enable the system to adapt and experiment ("fail fast, fail small" being the preferred process of adaptation). One-party systems, from the Liberal Democratic Party in Japan to the Communist Party in the U.S.S.R. and China, suppress the information and processes intrinsic to dissent, and thus build up intrinsically unstable systems...Both China and the U.S. may be quite different countries by 2021. It's worth recalling that nobody saw the 1989 implosion of the Soviet Union a mere ten years before in 1979, so it is not surprising no one sees the implosion of the Status Quo in China and the U.S. ten years hence.

Debunking Some Myths About The "Greek CDS Contagion" Threat

Submitted by Tyler Durden on 06/18/2011 18:42 -0400

Now that the Greek bailout is topic front and center for the second year in a row, it means that it is time for the mainstream media to once again prove to the world that in the past year it has learned precisely didley squat about how the more complicated securities used in capital markets operate. Such as CDS. Just like in May 2010, the prevalent trope among the clickbaiters is that CDS written against Greece will destroy the world, in superficial attempts to bring about panic induced by the faulty conventional wisdom that CDS was the cause for the implosion of AIG. Well, wrong.

Guest Post: “Stay And Fight”: Is This Realistic?

Submitted by Tyler Durden on 06/18/2011 19:44 -0400

Before leaving New York, I was enjoying a perfectly nice afternoon yesterday walking around the Upper West side. When I got to Lincoln center, roughly at the corner of Broadway and W 62nd Street, reality set in. No fewer than ten NYPD storm troopers were ‘patrolling’ the sidewalk outside in full combat gear: Kevlar helmet, flak vest, semi-automatic 9mm sidearm, and Colt model 933 with M900 foregrip and M68 aimpoint. A few of them had M203 variety grenade launchers fitting snugly underneath the barrel. And to what did we owe the deployment of such unnecessary firepower? An invasion of the Canadian hordes? Terrorists on the loose? No. Some visiting politician… clearly an individual who feels important enough to merit an intimidating death squad in his vicinity. This is the nature of the system. Police are armed to the teeth… and while their official marketing slogan may be to ‘keep people safe’, their real function is to be the protectors and enforcers for the political class, all while keeping the people in check so that the know who’s boss.

Smart Money Europe - New Bold Prediction: By 2015, 10 percent of the S&P 500 will consist of Gold & Silver Stocks!

Posted by: Smart Money Europe

Post date: 06/18/2011 - 12:57

Approved by our political and monetary ‘leaders’!

Greek Bailout Leaves the French Unruffled While German Politicians Seethe

US government's fiscal state worsens, DC politicians fiddle

Greek Default Could Trigger Chain Reaction

Gold and Silver Still Great Investments in Inflation, Stagflation, and Deflation

The Systemic Financial Pillaging of the Middle Class

Celente--Collapse: It's Coming! Are you Ready?

"Conditions are rapidly deteriorating and it is imperative to remain on high alert. Another violent financial episode is looming. It may be triggered by economics (e.g., debt defaults and debt crisis contagion in Europe, a crashing US dollar, or commodity price spikes); it could be terror (false flag or real), a man-made disaster (another Fukushima) or one made by Mother Nature … or any combination of the above."

This Is How The Dollar Dies

Think again... if you think you can trust the mainstream media...
Poll Gate: CNN Caught Red Handed Deceiving Public with Skewed GOP Poll.