Today the treasury announced their auctions for next week:
*U.S. TREASURY TO AUCTION $13 BILLION IN 29-YEAR 11-MONTH BONDS
*U.S. TREASURY TO AUCTION $36 BILLION IN THREE-YEAR NOTES
*U.S. TREASURY TO AUCTION $21 BILLION IN 9-YEAR 11-MONTH NOTES
*U.S. TREASURY TO AUCTION $27 BILLION IN SIX-MONTH bills
*U.S. TREASURY TO AUCTION $27 BILLION IN THREE-MONTH BILLS
Quick Take
This only ads up to a mere $124 billion...No biggie! Whats another $124 bill among friends?(sarcasm off)
I am sure these auctions will do well as Europe's economy continues to swirl down the toilet bowl. We still somehow represent a "flight to safety". The way I see it sending your money over here for safety is like sending your daughter to the casino with Joran Van Der Sloot for cocktails.
Let's face reality here folks: This Ponzi game of finance cannot continue at this pace. It's mathematically impossible.
What's scary is we now have to peddle these auctions at a time where Europe appears to be heading straight into a debt deflation death spiral.
I say this because extreme austerity will be the only exit strategy that Europe has as long as the Euro is alive because none of these countries can devalue their currency.
As a result of extreme austerity measures: Wages will get crushed as these countries pay off their immense debts. Lower wages will then crater the housing market which then craters the banks and so on and so on.
What will be left will not be pretty. Moving forward, the European governments will have a lot less money in their coffers to spend on things like treasuries because their tax revenues will also crater as a result of austerity measures.
They will also be forced to spend more money at home as unemployment soars. The impact of such conditions will increase the costs of social programs that will be neseccary in order to avoid civil unrest.
The Bottom Line
There will be a day where one of these auctions will fail. It's a matter of WHEN not IF. There simply isn't enough money in the world to continue such irresponsible spending without printing.
My fear is when that day arrives the Treasury will have no choice but to turn our currency into a piece of toilet paper.
Let's all hope this house of cards doesn't tip over next week.
4 comments:
The ponzi masters are having too much fun raiding mutual funds, hedge funds, 401ks, and IRAs to stop now Jeff. The time aint here to let the chips fall.
We are going to go out in a spectacular flame of glory.
Time is needed to prepare for winter, it is true of us and it is true of corporations and it is true of the govt.
Looking back it makes you wonder if the ponzi knew what was to come as early as 2003 when they rewrote the bankruptcy laws.
Temporary layoff...good times
So what are the Chinese to do with all of those dollars we keep trading them?
FLip
I agree.
I am preparing as much as I can. Cut back the 401k to just get the full match at work in order to raise more cash.
What scares me is how clueless people are in terms of whats going on out there.
No one is saving. Everyone is thinking happy times are here again thanks to the bulltard financial media whores.
So sickening. I hope people wake up.
But I agree, the Ponzi game will last for awhile. I think we will see one more bounce before this sucker rolls over.
I think we sell off tomorrow though if the number isn't a total blowout from the census hiring.
Meeting expectations isn't enough and they are calling for +500-600k depending on the source.
Herb
Make more junk to ship to Walmart:)
I am sure the Chinese are happy with the bucky rally.
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