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Please let me know when one person "dumps" treasuries. I'll still be here.
We can address this two ways you ready?
First logic.
If you have a promise from someone (The Fed) to overpay for your asset (treasuries) no matter what the price is what are you going to do? keep it or sell it?
You will sell it unless you are an idiot of course. Why do you think the price of treasuries jumped right after the announcement? Because people are trying tobuy them now and be the first ones to sell them to the government.
Second way to address your false statements
Fed TIC data
Treasury International Capital (TIC) Data for January
Washington -The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for January 2009. The next release, which will report on data for February 2009, is scheduled for April 15, 2009.
Net foreign purchases of long-term securities were negative $43.0 billion.
- Net foreign purchases of long-term U.S. securities were negative $18.8 billion. Of this, net purchases by private foreign investors were negative $10.2 billion, and net purchases by foreign official institutions were negative $8.5 billion.
Net foreign acquisition of long-term securities, taking into account adjustments, is estimated to have been negative $60.9 billion.
- U.S. residents purchased a net $24.2 billion of long-term foreign securities.
Foreign holdings of dollar-denominated short-term U.S. securities, including Treasury bills, and other custody liabilities increased $30.9 billion. Foreign holdings of Treasury bills decreased $15.4 billion.
Banks' own net dollar-denominated liabilities to foreign residents decreased $118.9 billion.
Monthly net TIC flows were negative $148.9 billion. Of this, net foreign private flows were negative $158.1 billion, and net foreign official flows were $9.2 billion. .
Complete data is available on the Treasury website at www.treas.gov/tic.
Now run along child.
Note the trend of treasury buyers moving from long date debt to short term debt...this is why the fed is buying long dated and not short because they see thewriting on the wall. They have defaulted plain and simple.
Cats on hear swear their economists and understand monetary policy its actually hilarious to sit back and see. Read a few articles on inflation and the great depression and instantly their mini Milton Friedmans
Yea because these "geniuses" have been so successful. There are many different theories in economics and some of them work better thenothers. Neoclassical Economics doesnt have a good track record if you stop drinking the koolaid for a second.
Now lets look at the most recent example of Quantitative Easing....Japan which began doing it in the late 90's early 2000's
Their currency did not collapse but it fell about 20%. They have the highest debt to GDP ratio in the world and their stock market has not significantly risenin 10 years. Now when you factor in the fact this is a saving/exporting economy and the fact that the largest credit bubble in the history of the universe"saved" them over the past 10 years you have to be extremely worried about the outcome for the US because none of these two things are present tosave us.