They don't have to sell, you're missing the point, as the evidence now clearly supports that the FCBs have backed away from subsidizing the US and it's consumer. All the words coming out of India, Thailand, Russia, China, Korea, etc have been backed up by action, and that's why you now see EZ Al on a leash, not daring to monetize and engage in heavy handed money printing. And as I've been saying all along, FCBs are the primary support for the bond and credit markets. Just start flipping through the yoy foreign custodial holdings from the Fed's H4 report,
federalreserve.gov
if you want to understand what's happening. We are in a new world, and it started gradually on about 12/08/2004 (tipping point). And yours truly picked it up better than anybody, go back and read my posts from late Dec and early Jan. And now things really get interesting, as the economy is rolling over, didn't take much either:
Message 21170571
9/9/2004 the peak +329,637
heroin withdrawal:
10/2/2004 +300,329
12/02/2004 +285,686
1/06/2005 + 271,550
1/27/2005 +238,476
2/10/2005 + 214,688
03/24/2005 +212,502 |
