The TIC report, issued monthly by the U.S. Treasury, indicates that the central banks of Japan and China recently started selling Treasury debt. I have created a quick link for subscribers. You can check this at any time. Type in this address, and click: http://bit.ly/TICreport.
This month, the dumping of U.S. Treasury bonds by foreigners has accelerated. They have sold over $40 billion worth.
It wasn’t just government bonds, either. We read: “Foreigners dumped $116 million of bonds made up of packaged U.S. mortgages. They sold $5.2 billion of Fannie Mae, Freddie Mac and Ginnie Mae bonds, and $5 billion in corporate bonds. And they unloaded $26.8 billion of U.S. stocks.”
The Federal Reserve buys $85 billion a month to keep long-term rates low. It’s not working. How much counterfeiting would it have to do to reduce long-term rates? A lot more than $1 trillion a year.
Bernanke has presided over the largest increase in FED counterfeiting in history. He will bequeath this looming disaster to his successor.