In The News Today

Posted at 11:17 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

A very good piece written by Erik. As we counseled for years, it is all about credit…TOO MUCH! And remember, everything runs on credit including distribution.

Dollar Up—Gold Down—How Is That Possible_001

Dollar Up—Gold Down—How Is That Possible_002

Bill Holter’s Commentary

Erik does excellent work.  If you would like any of his books, please at least pay for shipping as the man should not have to pay from his own pocket to enlighten you.

For Those Who Requested a Copy of The Audit_001

Bill Holter’s Commentary

Foreigners are selling Treasuries at a record pace? Watch interest rates. If they don’t go higher, or actually drop…watch the Fed’s balance sheet. The end.

Fed Panics As Foreigners Dump A Record $109 Billion In US Treasuries
April 1, 2020

Exactly one week ago, when we highlighted the unprecedented surge in Fed Treasury purchases which since March 19 has amounted to $75BN per day until tomorrow when it tapers modestly to $60BN, we said that the Fed’s record ramp in debt monetization “is hardly an accident: one look at the Treasury securities held in custody at the Fed shows that the past two weeks have seen a whopping $50BN in foreign central bank sales, a 1.7% drop which was the highest in six years.”

As we also noted, “the selling may have contributed to record volatility in the Treasury market and prompted the Fed’s intervention. More importantly, it also means that the biggest buyer of US Treasurys in the past decade, foreign official institutions (i.e., central banks and reserve managers) are now sellers, so now the U.S. government needs private investors to soak up the ever increasing debt issuance.”

But since private investors are busy, trying to avoid getting killed by a deadly Chinese virus, it means that only the Fed now can fund the exploding US budget deficit… which is precisely what it has been doing, having purchased a record $912 billion in US Treasuries since the relaunch of official QE (hence expanded to unlimited QE) on March 13.