HOLY !@#!! Treasury Auction Schedule! U.S. 10-Year Note Falls Most in 7 Weeks as Record Supply Looms!
‘Holy, great gazooks of treasuries Batman! What are we going to do?’
‘No worries Robin, helicopter Ben will unleash his QE weapon!’
- Who is going to buy all these IOUs? I wonder? Karl Denninger writes :
Let’s see if I can count this up….
70 day CMBs, $30 billion (tomorrow)
13 week Bills, $32 billion(July 27th)
26 week Bills, $31 billion(July 27th)
52 week Bills, $27 billion(July 28th)
2 year Notes, $42 billion(July 28th)
5 year Notes, $39 billion(July 29th)
7 year Notes, $28 billion(July 30th)
19 year, 6 month TIPS(reopened), $6 billion (July 27th)
That’s two hundred thirty-five billion dollars over the next week! I guess you should get while the getting is good, but this is going totally parabolic. That money has to come out of somewhere, by the way, in order for the sale to succeed, which is going to get rather interesting at some point – but exactly where it matters is impossible to know.
I expected that when we crossed the $100 billion threshold in a week the market would throw up all over it, but it didn’t. Now we’ve got the government trying to sell a quarter of a trillion dollars in debt over the next week, the announcement is out there, and while the bond market is selling off to a material degree equities could care less!
This is flat-out insane. At this run rate we would be trying to sell twelve trillion dollars over one year’s time, an obviously ridiculous and impossible-to-peddle amount of debt at any price.
When does the rest of the world wake up (not to mention the primary dealers) and say “NO!”? Never? Is there a truly insatiable demand for our government’s debt, despite the fact that President Obama got up on the national stage last night and promised to spend another trillion dollars we don’t have?
How do equities power higher into this sort of debt issuance? Is it simply that the market has deduced that the government will hand all of this zero-interest money out – indefinitely?
Guess what – that which is impossible won’t happen, and the stock market is now telling you that the impossible will become reality. There has been and will not be any amount of fiscal sanity on the part of our government until the market imposes it, and when it does it is going to happen in exactly the same way it happened to Bear Stearns, Lehman, Fannie and Freddie. May I remind readers that it was said that Fannie and Freddie “couldn’t” get in trouble due to their implicit government guarantee? Well guess what – they both effectively failed, but when the US Government finds itself in the same situation it has nobody who can take it into conservatorship and as such we’re just going to have to deal with the consequences of failed debt auctions – that is, dramatically increased funding costs across the board in the economy, including the government, which will choke off any hope of economic anything.
Folks, this is how you get detonation of a nation’s monetary and political system. Timing the “event” it is not easy, but the certainty of outcome given this sort of outrageously irresponsible activity is not in doubt.
I’m increasing my stock of things that “will never go to zero” and keeping my ear to the ground. The “short the phone book but make sure you get out fast before you get trampled” moment approaches – mark my words.
- Anyone care to take a bet that the USD or treasury market will not collapse? It is bye bye to one or the other. Very likely both! Bloomberg reports :
U.S. 10-Year Note Falls Most in 7 Weeks as Record Supply Looms
July 23 (Bloomberg) — Treasuries declined, with 10-year notes falling the most in almost seven weeks, as stocks rose and the U.S. announced plans to sell a record $115 billion in notes in four auctions next week.
Yields on government securities rose for a second day as the Dow Jones Industrial Average closed above 9,000 for the first time since January. Next week will be only the second time the Treasury auctions three so-called coupon issues and an inflation-linked maturity in a five-day period since the U.S. started selling debt regularly in 1976 as the government accelerates its unprecedented pace of borrowing to stimulate the economy and service deficits.
“The amount of supply needing to be sold still carries a lot of shock value,” said Eric Lascelles, chief economist and strategist at TD Securities Inc. in Toronto. “Throw the stock rally on top of that and you have a good argument for selling Treasuries.”
The 10-year note yieldrose 12 basis points to 3.67 percent at 4:24 p.m. in New York, according to BGCantor Market Data. It increased as much as 17 basis points, the most since gaining 19 basis points on June 5. The 3.125 percent security due May 2019 fell 31/32, or $9.69 per $1,000 face amount, to 95 1/2.
Thirty-year bond yields increased 15 basis points to 4.59 percent. Two-year note yields gained nine basis points to 1.04 percent. The U.S. plans to sell $6 billion in 20-year Treasury Inflation Protected Securities, $42 billion in 2-year notes, $39 billion in 5-year securities, and $28 billion in notes maturing in seven years. The auctions will be held over four consecutive days starting on July 27. The previous record was $104 billion in 2-, 5-, and 7-year notes sold the week of June 22.
- Corruption is endemic in the pharmaceutical industry in America. Big Pharma is corrupting doctors to further their greed. Profit comes first, ethics, well being of patients are secondary. Too many doctors are caught in this web of greed. Bruce E. Levine reports :
Americans must start to question the legitimacy of the exploitative pharmaceutical-industrial complex and the predatory people atop them.
“The wave of evil washes all our institutions alike.” –Ralph Waldo Emerson
The wave of evil washes not only the financial-industrial complex, the military-industrial complex, the energy-industrial complex, and predatory executives at AIG, Citibank, Halliburton, Blackwater/Xe, Enron, and Exxon. The pharmaceutical-industrial complex has virtually annexed the mental health profession, whose all-star opportunist team is captained by Harvard psychiatrist Joseph Biederman, the high-profile doctor most responsible for the explosion of kids on psychiatric drugs, first for attention deficit hyperactivity disorder (ADHD) and then for bipolar disorder.
In 2008, Biederman was nailed by Congressional investigators for taking $1.6 million from drug makers from 2000 to 2007 and failing to report most of this loot to his university, a major conflict of interest in violation of the rules. In a February 26, 2009 deposition given by Biederman to several states attorneys (who were claiming that makers of antipsychotic drugs defrauded state Medicaid programs by improperly marketing their medicines),….
As part of this legal proceeding, Biederman was forced to provide documents relating to his interactions with Johnson & Johnson, the giant pharmaceutical company. These documents included presentations he made over several years summarizing the work of his center financed by Johnson & Johnson. On March 20, 2009, the New York Times reported that Biederman pitched Johnson & Johnson that his proposed research studies on its antipsychotic drug Risperdal would turn out favorably for Johnson & Johnson — and then Biederman delivered the goods. The Times also reported that in 2005 Biederman proposed a study on adolescents using the ADHD-drug Concerta, manufactured by Johnson & Johnson, and he assured the company that his study would “extend to adolescents positive findings with Concerta.” And in 2006, Biederman was co-author of a study showing that children given Concerta for a prolonged period did not have reduced growth, allaying a significant concern about the medicine — but in contradiction to what has now been established.
For decades, the majority of American doctors, mental health professionals, the media, and the general public have yielded to the disseminations of Harvard psychiatrist Joseph Biedeman who successfully evangelized for more children — and younger children — to be medicated with powerful psychiatric drugs.
The blowback from ADHD drugs is reported in the current July 2009 Scientific American Mind article “Do ADHD Drugs Take a Toll on the Brain?” a comprehensive report of the long-term dangers of ADHD drugs such as Ritalin, Concerta, Adderall, and Vyvanse.
ADHD drugs are either the “amphetamine-like” methylphenidate (e.g., Ritalin and Concerta) or actual amphetamines (e.g., Adderall and Vyvanse), so it should not be surprising that long-term use is associated with many hazards. The current Scientific American Mind piece, authored by Edmund S. Higgins, clinical associate professor of family medicine and psychiatry at the Medical University of South Carolina states, “Methylphenidate has a chemical structure similar to that of cocaine and acts on the brain in a very similar way.” In February 2009, neuroscientists at the Rockefeller University reported cocaine-like structural and chemical alterations in the brains of mice given methylphenidate.
It is common for cocaine addicts to experience depression, anxiety and cognitive problems, and mental health authorities have long reported that ADHD as a “risk factor” for other mental health problems but have neglected to take seriously the possibility that it is the ADHD-drug treatment itself that contributes to higher rates of other emotional and cognitive difficulties. The current Scientific American Mind article reports: “At least three studies using animals hint that exposure to methylphenidate during childhood may alter mood in the long run, perhaps raising the risk of depression and anxiety in adulthood.”
It has also now been scientifically established — in contradiction to Biederman’s findings — that ADHD drugs stunt growth in humans. In a 2007 National Institute of Mental Health study of ADHD treatments involving 579 seven- to ten-year-olds over three years time, the growth rates of unmedicated children were compared to the growth rates of children who took ADHD stimulants throughout that period. Compared to the unmedicated children, the ADHD drug-treated children showed a decrease in growth rate (on average, two fewer centimeters in height and 2.7 kilograms less in weight). This growth-stunting effect stopped by the third year, but the children on ADHD drugs never caught up to their counterparts.
In my clinical experience, there are many children whose only problem in life is not doing their homework but who are medicated with ADHD drugs; and the majority of their parents had no idea that they were giving their children amphetamines or amphetamine-like substances. Unfortunately, too many Americans are willing to surrender their own authority to damn near every pompous authoritarian rather than question the legitimacy of exploitive industrial complexes and the predatory people at the top of them.
Bruce E. Levine, Ph.D., is a clinical psychologist and author of Surviving America’s Depression Epidemic: How to Find Morale, Energy, and Community in a World Gone Crazy (Chelsea Green Publishing, 2007).His Web site is http://www.brucelevine.net
- Most people are brain washed into thinking that the conflict between Israel and Palestinians is because Israel’s right to exist is being threatened. Christians are brain washed into thinking: the holy chosen people are being persecuted by Satan and underlying the conflict is a biblical religious war. The fact of the matter is: most Jews nowadays can hardly claim to be genetic descendants of the biblical Isaac or Jacob. See : Are Today’s Jews True Israelites? :
A BRIEF HISTORY OF THE TERMS FOR “JEW”
Strictly speaking, it is incorrect to call an ancient Israelite a “Jew” or to call a contemporary Jew an “Israelite” or a “Hebrew.”
(You can see a scanned image of the text and cover by clicking HERE)
The following are portions of a letter written by Dr. Benjamin H. Freedman, a Jew, that was published by the National Economic Council, Inc. as “Council Letter No. 177 (October 15, 1947).” Dr. Freedman’s letter exposed political Zionism for what it really is: Vaguely most Christian Americans have the idea that the Jews claim Palestine because it was the “Promised Land” in which they lived for a period of a few centuries that ended 2000 years ago. And the thought of a people returning to its “homeland” seems emotionally satisfying and good.
Popular ignorance of the real basis of political Zionism is beyond calculation. But here are facts most Americans do not know:
Political Zionism is almost exclusively a movement by the Jews of Europe. But these Eastern European Jews have neither a racial nor a historic connection with Palestine. Their [non-Semitic] ancestors were not inhabitants of the “Promised Land.” They are the direct descendants of the people of the Khazar Kingdom, which existed until the 12th century. who, about the 1st century A.D., emigrated from Middle Asia to Eastern Europe …. About the 7th century A.D., the King of the Khazars adopted Judaism as the state religion, and the majority of inhabitants joined him in the new allegiance. Before that date there was no such thing as a Khazar who was a Jew. Neither then nor since was there such a thing as a Khazar whose ancestors had come from the Holy Land. The Semitic people who established Judaism in Palestine many centuries before the Khazarsbecame converts to the Hebrew faith[Dr. Freedman errs at this point - Judaism, a corrupt and blasphemous religion brought back from Babylon to Judea, has nothing to do withthe Hebrew faith of the Old Covenant, as is proven in chapter 101, did mostly emigrate from Palestine. But none of them [Semitic Judahites] emigrated to the Khazar Kingdom far to the North.
The Khazars were a non-Semitic … Mongolian tribal people. In view of this fact, what becomes of the cry for “repatriation” to the “homeland”? These Eastern European, Yiddish-speaking Jews have no historic or racial connection with Palestine….
On September 10, 1985, in an address to the Cornell Club of Washington, DC, Jewish author Dr. Alfred M. Lilienthal revealed that the Khazar-Jewish connection has been verified by many prominent anthropologists:
Many [modern-day Jews] of whom have clamored to go back [to Palestine] never had antecedents [physical ancestors] in that part of the world….
The overwhelming majority of Jews are descendants from the converts of Khazaria and elsewhere who adopted Judaism…. This view of the non-ethnicity of the largest portion of Jewry is sustained by such prominent anthropologists as Ripley, Weissenberg, Hertz, Boas, Pittard, Fishberg, Mead and others.
- So, what are the real reasons underlying the conflict? Professor Michel Chossudovsky explains in, War and Natural Gas: The Israeli Invasion and Gaza’s Offshore Gas Fields :
The military invasion of the Gaza Strip by Israeli Forces bears a direct relation to the control and ownership of strategic offshore gas reserves. This is a war of conquest. Discovered in 2000, there are extensive gas reserves off the Gaza coastline.
British Gas (BG Group) and its partner, the Athens based Consolidated Contractors International Company(CCC)owned by Lebanon’s Sabbagh and Kouryfamilies, were granted oil and gas exploration rights in a 25 year agreement signed in November 1999 with the Palestinian Authority.
The rights to the offshore gas field are respectively British Gas (60 percent); Consolidated Contractors (CCC) (30 percent); and the Investment Fund of the Palestinian Authority (10 percent). (Haaretz, October 21, 2007).
The BG licence covers the entire Gazan offshore marine area, which is contiguous to several Israeli offshore gas facilities. … It should be noted that 60 percent of the gas reserves along the Gaza-Israel coastline belong to Palestine.
Who Owns the Gas Fields
The issue of sovereignty over Gaza’s gas fields is crucial. From a legal standpoint, the gas reserves belong to Palestine. The death of Yasser Arafat, the election of the Hamas government and the ruin of the Palestinian Authority have enabled Israel to establish de facto control over Gaza’s offshore gas reserves.
British Gas (BGGroup) has been dealing with the Tel Aviv government. In turn, the Hamas government has been bypassed in regards to exploration and development rights over the gas fields.
- Peter Eyre explains further in The Palestinian Telegraph :
Since British Gas (BG) first discovered huge offshore reserves of natural gas in Gazan waters Israel has attempted to dictate and secure the future of these reserves.
At one stage they almost signed up for the entire reserve but then political change took place in Gaza when Hamas came to power. This was a severe blow to the Israeli Government which had by now established a war footing.This was confirmed back in 2007 when Lt-Gen. (ret) Moshe Yaalon published an article in the Jewish Center for Public Affairs (Vol 7, No 17 19 October 2007) titled: Does the Prospective Purchase of British Gas from Gaza’s Coastal Waters Threaten Israel’s National Security? It was in this article that he quoted the following: “It is clear that without an overall military operation to uproot Hamas control of Gaza, no drilling work can take place without the consent of the radical Islamic movement”.
After exhaustive talks with BG the Israelis started to lose ground and realised that these huge reserves of gas could disappear from their grasp and be piped to Egypt for conversion to Liquefied Natural Gas (LNG) for export to the UK/USA. In January of 2008 BG had given up all hope of negotiating a deal and closed down their offices in Israel.
By mid 2008 Israel had already started up talks to create a cease fire with Hamasin the Gaza Strip. What was ironic was the fact that during this same time Israel was planning a strike on Gaza. It was at this stage that the then Prime Minister, Tony Blair came on the scene and asked the Israeli Government to urgently re- commence talks on the gas issue (despite a deal that had already been struck with the Egyptians).
The Israeli Government then decided to postpone the attack on Gaza as they realised that if they went in prematurely it could turn the Central Government of Palestine against them and thus cause any further talks to fail. The Israelis urgently asked BG to come back to the table to continue talks on the gas issue but again talks failed. By this time the fate of Gaza was sealed.
As we have seen around the world most of the wars or conflicts are hinged on economic greed for natural resources. We have seen this play out in Iraq and again in Afghanistan. This scenario was to be repeated in Gaza in the hope of removing Hamas, allowing Israel to gain access to its offshore wealth. Thus the IDF carried out a totally disproportionate attack on Gaza in December 2008 by land, sea and air.
- Peter Eyre explains the current Iranian situation :
The Iranian threat has been concocted by both the United States of America and Israel and flawed by tunnel vision. As usual we see imperialism at its “best” whereby one country wants to control both the natural resources of another and its decision making. We saw this same approach carried out against Pakistan, India, and North Korea. The feedback from world experts is that Iran is not a threat to the West.
This inter-connection of greed, power and human destruction described above, is a sure remedy for Armageddon. Israel, Gaza and Lebanon have become places where it is very dangerous for the ordinary person to live, as the ecosystems are all contaminated. An end must be brought to human greed and the genocidal weapons put at its service. Irreversible damage has already taken place, but we shall be able to contain some of it, if no further destruction occurs using such weapons. There must be a complete and absolute ban on all and any weapons made containing uranium.
- Never accept all the bull crap these globalists, Illuminati elite dish out to you as reason for wars. They are just pitting one people against another to further their greed. Their lust for control and mammon. They will not hesitate to sacrifice innocent Palestinian or Jewish lives to further their world conquest.