An Avalanche of Treasury Debt Hit The Market In February

There are two ways to conquer and enslave a country.  One is by the sword, the other is by debt.  – John Adams

According to the U.S. Treasury TIC (Treasury International Capital) Report, foreign Central Banks reduced their holdings of U.S. Treasury bonds from $6.219 trillion in January to $6,162 Trillion as of the end of February – TIC Treasury Data.   That’s $57 billion.

Notable sellers were Japan – $14.2 billion;  China – $15.4 billion;  UK – $15.1 billion;  and Russia – $13.4 billion.

The amount of Treasury debt outstanding increased from $18.08 trillion at the end of January to $18.155 trillion at the end of February (Treasury Direct).  This was an increase of $147 billion.

Between the Treasury and Foreign Central banks, $204 billion of Treasury bonds were sold in February.  That is about 20% of the total amount of debt issued by the Treasury in 2014 (Treasury debt increased a little over $1 trillion. The question is, who the hell bought $204 billion in Treasury bonds in February?

If it weren’t for the ability of the Fed and the Treasury to print money unfettered, the United States would be in worse shape than Greece right now…

2 thoughts on “An Avalanche of Treasury Debt Hit The Market In February

  1. Ben Bernanke Will Work With Citadel, a Hedge Fund, as an Adviser
    BERNANKE, CITADEL’S NEW ADVISER In the latest and most prominent move by a Washington insider through the revolving door into the financial industry, the former Federal Reserve chairman Ben S. Bernanke will become a senior adviser to the Citadel Investment Group, the $25 billion hedge fund founded by the billionaire Kenneth C. Griffin, Andrew Ross Sorkin and Alexandra Stevenson report.
    Mr. Bernanke “will offer his analysis of global economic and financial issues to Citadel’s investment committees. He will also meet with Citadel’s investors around the globe,” they write.
    Mr. Bernanke said he was cognizant of the public’s concerns of undue influence of Wall Street on government and chose to join Citadel, in part, because it “is not regulated by the Federal Reserve and I won’t be doing lobbying of any sort,” he said in an interview. He said he declined offers by other banks that were under the purview of the Fed. “I wanted to avoid the appearance of a conflict of interest,”he said.
    Without getting into specifics, Mr. Bernanke said he would receive an annual fee but would not own a stake in the firm or receive a bonus based on its performance. He said his arrangement with Citadel allowed him to take on other consulting roles.
    Other top government officials have gone on to Wall Street and investment firms. Mr. Bernanke’s predecessor, Alan Greenspan, was recruited as a consultant for Deutsche Bank, the bond investment firm Pacific Investment Management Company and the hedge fund Paulson & Company. And last month, Jeremy C. Stein, a former Fed governor, agreed to join the $20 billion hedge fund BlueMountain Capital Management, where he will advise managers on issues like financial regulation.

    http://www.nytimes.com/2015/04/16/business/ben-bernanke-will-work-with-citadel-a-hedge-fund-as-an-adviser.html?

    is he serious?…Citadel?avoid conflict of interest?wtf

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