Those are various old bonds that the Fed has elected to print money up out of thin air, and buy. I'm presuming this is because foreigners are now dumping, and there is nothing but a printing press to support (artificially) the bond market (and defacto the stock market). Amazingly this repo action ($7, 725 billion since Nov. 2) has happened since the election, not before, which tells me foreigners (*) were justing awaiting the outcome, and are now voting with their feet. These permanent injections have about a 9x multiplier effect because of fractional banking,etc. Can you spell I-N-F-L-A-T-I-O-N?
Coupon Pass:
investorwords.com
(*) Here's one stooge that was willing to step and take Old Maid Cards:
South Korean Reserves Have Record Gain on Won Sales
By Seyoon Kim
Dec. 2 (Bloomberg) -- South Korea's foreign-exchange reserves
had a record monthly gain in November, surging $14.2 billion, as
the central bank bought dollars to slow the won's gains.
The reserves, the world's fourth largest, rose 8 percent to a
record $192.6 billion at the end of last month, the Bank of Korea
said in a statement in Seoul. The reserves increased ''in the
course of stabilizing the domestic foreign-exchange market
following global dollar weakness,'' the statement said. The bank
and the finance ministry don't comment on won sales.
The sales failed to prevent the won's 6.5 percent gain versus
the dollar in November, the biggest monthly rally since July 1998,
when it rose 11 percent from a drop triggered by Asia's financial
crisis. A stronger won may hurt exports, which the government is
relying on to drive growth in Asia's third-largest economy.
''The record increase in the foreign-exchange reserves shows
how desperate authorities were to slow the won's gains,'' said Go
Youn Sun, an economist at Dongwon Securities Co. in Seoul. ''South
Korea wanted to control the speed of the won's rise because the
currency rose too rapidly.''
The currency reserves, which lag those of Japan, China and
Taiwan, also rose after South Korea ''earned more interest on
holdings of U.S. Treasuries and the euro and other currencies,''
the statement from the central bank said |
