Saturday, December 31, 2011

Happy New Year Geithner

Outside of Ben Bernanke, who are you going to be able to sell Treasury securities to in 2012.

Holdings of U.S. Treasurys by foreign central banks has fallen by a record amount over the past four weeks according to the latest Federal Reserve data.

The net drop was $69 billion. Only Japan's propping up of the dollar against the yen, which resulted in the net Japanese purchase of $100 billion Treasury securities, prevented the decline in foreign holdings from becoming much worse.

It's going to become more and more difficult for the Fed to keep rates low, unless it is willing to pump enormous amounts of new money into the system.

1 comment:

  1. I vote for "no bid" as the theme for 2012...

    And wishing u & everyone a HNY!