Tag Archives: Purchase

  • Blog

    Insatiable Demand For US Debt, or Something Else?

    by Chris Martenson

    Thursday, October 1, 2009, 5:28 PM

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    Recently the Fed reiterated that their $300 billion program of buying long-dated Treasury Bonds would end on schedule, meaning as soon as it hit $300 billion.  Well, that’s been achieved, so according to recent Fed statements, the program is over.

    This is a critical development, because the ability of the US government to continue to fund its massive deficits (at favorable rates) requires that each Treasury Auction be “well bid.”  The Fed has been a major participant, and so we might reasonably wonder who will fill the Fed’s shoes.

    This is critical, because the US government continues to float weekly auctions of Treasuries in quantities that just a few short years ago would have been unthinkable.

    Exhibit A:  Next week’s schedule:

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  • Blog

    A Dollar Crisis in the Making

    by Chris Martenson

    Tuesday, September 1, 2009, 7:09 PM

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    In this post, I respond to the recent flurry of activity in print and in blogs about the dollar, US indebtedness, and the risks associated with both.

    Mish recently posted a mixed grab-bag entitled Countdown To Dollar Implosion Madness, in which he (very rightly, in my view) took to task various bloggers and other Internet sources that have been peddling rumors of bank holidays and setting specific dates for a dollar implosion.

    I don’t like trading in unsourced rumors, either by the mainstream media or by bloggers (as they are very nearly always proven wrong), and I am especially leery of setting dates for future market events.  So kudos to Mish for his efforts to hold bloggers to a higher standard.

    However, I took exception to a snippet from a WSJ article by Andrew Batson, entitled Households Start to Rival the Chinese in Treasury Market (originally blogged about by Michael Pettis here), that offered the comforting impression that domestic savings are growing and are possibly sufficient to fund the US government deficit.

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