The GIANT scheme of US “Treasuries”!
Now it starting to make sense!
I was wondering who, in the right mind, is still buying US “Treasures” and financing skyrocketing US debt. I hear that Chinese are actually selling more of US debt than they are buying. Slowly trying to dump as much of it as they can.
http://english.people.com.cn/90001/90778/90857/90859/6731005.html
Arabs are not buying much since oil prices are still low and demand weak. Britain and Japan cannot be buying much since their own economies are in deep trouble
Apparently this is how it works:
Fed creates trillions out of thin air and gives it to major banks. Banks in turn ship money off shore to their overseas outfits and buy US debt pretending to be independent buyers and creating seemingly never ending “demand”.
http://www.washingtonsblog.com/2009/09/is-treasury-faking-foreign-purchases-of.html
So this is where trillions that Fed creates are going!
http://www.youtube.com/watch?v=PXlxBeAvsB8
And this is why “bailout” money is given directly to the banks instead of buying “toxic assets”. To “deal” with that problem all they had to do is change “mark to market” rules. By doing that “toxic assets” became not so toxic overnight and banks became “solvent” and even “profitable”. Alive enough to keep buying US debt through their offshore subsidiaries.
How long can it possibly go on! Nearly half US Government spending is borrowed money already! Not matter how gigantic scheme is it is bound to collapse sooner or later. This one, when it does, will take US down with it!
