The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: yard_man who wrote (3223)	12/11/2003 6:57:43 PM
From: russwinter	Read Replies (3) of 110194

<you gave up this manipulation talk?? > I have a foil for you, my friend! Over the last 13 weeks foreign CBs have purchased $75.661 billion in US debt securities, and the Fed has monetized another $10.174 billion. That's $85.835 billion of the roughly $250 billion twin deficit over that period. In otherwords they are so short of private buyers with private savings, that it's necessary for monetary authorities to buy (at any price) nearly 35% of US debt issuance. This number is likely to go even higher ($400 billion annualized? $500 billion?) as the fiscal deficit increases even further in early 2004. Does that seem sound to you? Personally, I'll just continue to stick (correctly IMO) with my own term on this point: manipulation and egregious statist intervention in markets.

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