The latest foreign custodial report from the Fed can only be described as shockingly bearish for the sistema. This may indicate that Russia and China have moved preemptively to pair down their U.S. dollar holdings. In Russia’s case, this might also be because of a Ruble defense operation. There is also Turkey’s dollar selling interventions to support the Lira.  Still, the amounts involved here looks to be far more than just currency support operations. Since the end of the year foreign custodial holdings have been reduced $100 billion.
With tapering winding down combined with this dump, how can the yields on U.S. Treasuries stay at 2.75%? Â The answer can only be more covert and sleazy Deep State operations, probably using leveraged derivatives combined with tipping off the rat-line Boyz and favored corruptos ahead of these operations.
The other method is to bribe or compromise some well-placed pedophile or patsy in a government or a large money manager somewhere to buy extra Old Maid Cards. We saw an example of this operation in December with thesudden WTF arrival of Belgium as a new UST buyer.
These officials are also regularly reminded by Deep State operatives just about how obstacles are treated. On Tuesday, a 11th banker was “suicided†in front of a subway train of all things. These individuals are drawn to dangerous falls like magnets. It seems in some buildings a special diving board has been installed.  Meanwhile, as national debt surges over $17.5 trillion, the folks who run the credit agencies are completely in line with their pristine and fictitious AAA U.S. ratings.
In retail land, we see that the potential for “new order shock†is inevitable, as unsold inventories are excessive. Maybe the Deep State can arrange for these goods to be deep sixed somewhere?
