Comments on: It’s All About Supply, Not Demand

By: Mark E Hoffer

Mark E Hoffer — Mon, 23 Nov 2009 13:07:27 +0000

this is a good art., and, agreeing w/ I-Man, above, would be nice w/graphs..

though, w/this: “As the budget deficit widens and the U.S. government borrows more, the U.S. taxpayer will likely end up shouldering this burden. While this may not come as a shocking revelation, the sheer size of these numbers might.”

are we not overlooking “QE”? Much of this ‘debt’ is not being ‘purchased’, in the traditionally thought of manner, but is being ‘monetized’, no?

By: Hantra

Hantra — Fri, 20 Nov 2009 21:27:55 +0000

This is the most rational thing I have read on this subject. Nice find.

By: cewing

cewing — Fri, 20 Nov 2009 19:23:21 +0000

In trying to answer the question “Why do foreigners keep buying US debt?” I wonder if an important factor is the nature of the US itself. Depite the protests of some on the right, America isn’t going anywhere. Our economy is down, but it’s still huge and, relative to most of the rest of the world, incredibly stable, even taking into account all the bubbles and scandals.

Long-term investing in the USA might seem foolish right now, but over the long run it has paid off for people looking to guarantee the return OF their money, not just a return ON their money.

By: put_seller

put_seller — Fri, 20 Nov 2009 19:08:19 +0000

How does the TIC report account for US Fed Reserve Bank SWAPs and REPOS to foreign central banks, that the foreign central bank uses to purchase longer dated US treasuries?

If I am a foreign central bank that can effectively borrow money from the US fed at 0.50% and invest the proceeds into say a 5 year or 7 year treasury at 2.2-3.0% does this show up as foreign indirect bidders into the US treasury market? If it does, then the indirect foreign flows is a complete farce. Inquiring minds want to know. Don’t you?

By: I-Man

I-Man — Fri, 20 Nov 2009 18:01:22 +0000

Jim-

Any way we could get the charts added to this post? When you click them it sends you direct to your site. Great post btw, just want to see the pictures.

Thanks!
-I-Man