Dumping Equities to Support Bucky and El Bondo Mondo?

As noted last week there will be a record issuance of US Treasuries this week by Team Obama.

So, could money be flowing out of stocks as a reaction to the dumping of support in preparation for the liquidity required by the notes, purposefully by design, as speculated by Denver Dave? In the manner of pushing the investor around, like the vegetables on your plate?

Or not. One can only wonder in this brave new world of opaque quantitative easing and Federal Reserve innovations.

A quick message of inquiry to Treasury Tim and Zimbabwe Ben brought no response, as they are tied up all day in a Working Groups meeting. Lloyd and Jamie are attending on speakerphone to maintain a low profile, obtain status updates, and provide direction as required to their staffs at the Treasury, the Fed, and their proprietary trading desks, not necessarily in that order.

But tonight, I will be having a beer, with the most interesting man in the world.



Unless he must do a new roadshow presentation for his creditors.

Stay thirsty my friends.

China Makes Biggest Cut in US Treasury Assets Since 2000

China dumps US Treasuries the most aggressively in a decade. Now THAT's a change you can believe in.

One has to wonder how long the UK, Japan and the US can keep supporting each other's crony capitalist oligopolies.

China Daily
China cuts US Treasury holdings in June
2009-08-18

NEW YORK: China reduced its holdings of US Treasury debt in June by the biggest margin in nearly nine years, according to a US Treasury Department report issued on Monday.

China cut its net holdings by 3.1 percent to $776.4 billion in June from $801.5 billion in May, the report says. This is also the first large-scale reduction of US Treasury debt by China so far this year.

However, its June holdings were still larger than April's $763.5 billion and $767.9 billion in March, according to the statistics of the Treasury Department.

Reuters data show the drop in China's Treasury holdings in June was the biggest percentage reduction since a 4.2 percent cut in October 2000.

On the other hand, Japan, the second-largest holder of US Treasury securities, increased its holdings to $711.8 billion in June from $677.2 billion in May.

The United Kingdom, the third largest holder, also increased its holdings to $214 billion in June from $163.8 billion, a surge of 30.6 percent.