Treasuries and Ron Paul

[DRumsfeld2000]

In the interview below Ron Paul talks about Treasuries being bought. Of the recent issues for about $75bn he says that about $12bn were only bought by foreigners the rest was internal. Is there a web site where you can find out who bought what, ie what percentage is foreign buying? This would give an interesting insight into how foreigners viewed holding Dollars.


http://www.dailypaul.com/node/115914

[unlucky]

Re: Treasuries and Ron Paul

If the growth in the govt deficit is being funded largely internally (I mean by US savers, NOT Fed printing) wouldn't that be a positive, rather than negative, thing? Would it not mean that overall US indebtedness (public + private) is not growing as fast as otherwise? Or am I missing something?

[jpatter666]

Re: Treasuries and Ron Paul

If the growth in the govt deficit is being funded largely internally (I mean by US savers, NOT Fed printing) wouldn't that be a positive, rather than negative, thing? Would it not mean that overall US indebtedness (public + private) is not growing as fast as otherwise? Or am I missing something?

The answer is IMO, who is really doing the buying. The suspicion (as I understand it) is that the Fed is giving money (or low interest loans) to the banks which use it to buy Treasuries.

Kind of a weird shell game.

[Jay]

Re: Treasuries and Ron Paul

Kind of a weird shell game.

I like to call it money laundering.

[Fiat Currency]

Re: Treasuries and Ron Paul

I like to call it money laundering.

Yup - or fraud. If you or I did it, we'd be behind bars. :eek:

[charliebrown]

Re: Treasuries and Ron Paul

The fed is busy buying MBS. Think it is from the banks? Then the banks buy treasuries in a "i'll scratch your back if you scratch mine" kind of deal. Treasuries (especially long dated treasuries may blow up), but they will blow up a whole lot less then MBS with a 5% coupon. I would take this less bad scenario if I were in their shoes.

[rjwjr]

Re: Treasuries and Ron Paul

I like to call it money laundering.

Oh, good, so it's nice clean money then. Probably to halt the spread of swine flu. The Treasury and Fed are considerate that way.

[DRumsfeld2000]

Re: Treasuries and Ron Paul

Read this article, especially the paragraph fourth from the end. The USA does not have sufficient yearly savings to cover the deficit, unlike in Japan and Germany. About 6months ago the savings rate in the USA was negative, the first time since the Great Depression, it is now about 4%.

http://www.thedailycrux.com/content/...Stansberry/eml

[unlucky]

Re: Treasuries and Ron Paul

Read this article, especially the paragraph fourth from the end. The USA does not have sufficient yearly savings to cover the deficit, unlike in Japan and Germany. About 6months ago the savings rate in the USA was negative, the first time since the Great Depression, it is now about 4%.

http://www.thedailycrux.com/content/...Stansberry/eml

So to sum up, the nearly $1T printed by the Fed has been recycled into treasuries and back to the Treasury dept., and next year the Fed will need to do this not just for new issuance but also to roll pre-existing debt. Hmmm.