Who actually bought the 1.885 trillion US dollars in US government papers emitted in the fiscal year 2009?
According to current Treasury Bulletin
In view of the emerging US deficit, one is already advisable to the bond markets, as it is possible that US government bonds can still be sold so easily. So the Canadian investment company "Sprott Asset Management" Already in summer that the US Finance Ministry of 2009 would have to settle well three times as many government bonds as in the previous year and wondered which of the good commercial layers were probably ready to lose these quantities.
Because of the traditional buyers but far and wide nobody seemed to have the capacities to record these papers, Sprott expected for the second year’s gauges serious sales ies, which, however, did not occur:
No failed auctions, no downgrading, no significant increase in long-term interest rates (which behave mirror image on bond prices), because we have to ask ourselves why that has gone so smooth. After all, it was quite obvious that not enough "normal" Purchasing power was present to accommodate the auctions.
According to the current report of the Ministry of Finance, the Treasury Bulletin, in the fiscal year 2009, 8,885 trillion dollars were emitted to state debt, of which "foreign and international purchasers "had took over 697.5 billion, which made an increase of at least 23 percent in the previous year. The Federal Reserve was officially 286 billion. even with almost 60 percent more decreased, during local public boreships their passed net degradations and practically stagnated those of pension and other funds. According to the Treasury Bulletin, it was the same above all the category "other investors", The after 90.1bn. In the previous year in the first 3 quarters 2009 whopping 510.1 billion. Had bought dollars, so on the full year so well, seven fold.
Of course, the traces of more than one third of the annual emission lose themselves, because the Treasury Bulletin identifies the "Other investors" Simply as what is not mentioned in the other categories, ie all individuals, government-sponsored enterprises (GSE) such as the mortgage banks nationalized in the previous year, Fannie Mae and Freddie Mac, Brokers and Dealers, companies, such as all possible other private professions public investors.
But since none of these groups aroused the appearance of buying the funds to buy so massive, spright into the officials "Flow of Funds"-Data of the Federal Reserve, which should be detailed about the owners of US government bonds. Here are the GSES with shopping of 5 billion, Broker and Dealers had net $ 80 billion. Sold, during commercial banks had bought as much. Companies have adopted further government securities for net $ 11.6 billion, which is all modest 16.1 billion together. Dollars added net.
The low part of 528.7 billion. Dollars had the Flow of Funds "households" took over, which in the previous year, however, government papers for just 15 billion. Had bought dollars. In view of the rather printed income situation, the question arises on how the households suddenly decreased the 35fache quantity of the previous year, nor, as categories such as Money Market Funds, Mutual Funds, ETFs, life insurance and pension and investment funds are assigned their own categories and specified species. Here, too, there is a look at the methodology information, the statistically comprises the "households" Not only their private investments, but again simply everything else was now assigned.
For 4 years ago with a very ultimate proof of manipulation of the gold market by the central banks, it is clear that only a single investor remains short, the Fed itself, which in the course of her "Quantitative "Ease" in 2. Quarter almost half the half and 3. Quarter 30 percent of total sovereign debt emissions should have.
Apparently, it was only possible with accounting tricks to keep these sums out of the official Fed passed, for example by being used as backparting agreements ("Repos") and not booked as a direct purchase. However, that does not ask for the US that the US has been struggling the note press in even higher mabe than already known anyway already known. Because this "Quantitative Easing" does not mean other than that the Fed has tripled its balance sheet 2009 approximately by simply bought bonds against self-fabricated dollars.
This was probably necessary bitterly, because the foreign buyers and of them especially the foreign central banks, were not ready to continue to finance the US as far as before. Thus, Zhu Min, vice-proofer of the Chinese central bank, according to Shanghai-Daily last unflunted that it is becoming increasingly difficult for the US because of the worldwide rapid export buersisse, to settle his state debt. "The United States can not force foreign governments to increase their insight into US government bonds. To double this weight is definitely impossible." China will continue to buy, but no longer at this pace:
The public account deficit of the US is back because the Americans save more. This is how the trade is back, which means that there are less dollars worldwide to buy government bonds.
FUR BILL H. Gross, Managing Director of the PIMCO, the world-growing bond funds for alliance, is therefore a Ponzi scheme for a long time (so, pyramid game-like financial assets are mentioned in the US, in which new investors are expedient to existing investors to new ones To attract investors). He has recently reduced his stock of Treasuries to a minimum mass and hold high cash-weight.
However, great ames that the private investors should finish with the fact that the only rough bond investor is currently the US itself and continue to play this game. While US government bonds were eliminated, investors should focus on bonds that are recognized by the Fed. Soon this could soon be all possible species of bonds based on credit card debt or car and student loans. However, especially good opportunities for a state depreciation campaign he sees in the debts of the city or regions, which are now extremely difficult times, but which were barely sent by the government in bankruptcy.