As Crisis Deepens Ukraine Population Show They Still Have a Sense Of Humour

ukranie humour

Meanwhile as things on the ground take a turn for the worse in Ukraine, financial markets are suggesting the big banks do not see any easy way out of this one.

from Zero Hedge:

Foreigners Sell A Record Amount Of Treasurys Held By The Fed In Past Week
Submitted by Tyler Durden on 03/14/2014 – 10:51

A month ago we reported that according to much delayed TIC data, China had just dumped the second-largest amount of US Treasurys in history. The problem, of course, with this data is that it is stale and delayed. For a much better, and up to date, indicator of what foreigners are doing with US Treasurys in near real time, the bond watchers keep track of a far less known data series, called “Treasury Securities Held in Custody for Foreign Official and International Accounts” because it shows what foreigners are doing with their Treasury securities held, as the name suggest, in custody by the Fed. So here it goes: in the just reported latest data, for the week ended March 12, Treasurys held in custody by the Fed dropped to $2.855 trillion: a drop of $104.5 billion. This was the biggest drop of Treasurys held by the Fed on record, i.e., foreigners were really busy selling.
Continue reading …

Fire-sale of US Treasuries is a warning of acute stress across the world

Someone is offloading US treasury bonds as if the future is going out of fashion according to Daily Telegraph finance writer Ambrose Evans Pritchard.

Nobody seems to know (or they’re just not saying) who is dumping US bonds. It could be Russia of course, ahead of any sanctions imposed by the USA, a case of Putin getting his retaliation in first, it could just as easily be China, Turkey, South Africa, or Indonesia, or all frantically selling bonds at the same time for different reasons. Or even Malaya because although they are not letting on officially they’re sure the American government knows what happened to that missing Malaysian Airlines Boeing 777.

We don’t know for sure at the time of writing. All we do know is that the US Federal Reserve’s custody holdings on behalf of foreign central banks dropped to $2.855 trillion: a drop of $104.5 billion. This was the biggest drop of Treasurys held by the Fed on record, i.e., foreigners were really busy selling.

Russia’s central bank is undoubtedly dumping dollar reserves primarily to prevent assets being tied up by sanctions but also perhaps to prevent a collapse of the rouble, as foreign companies race to get all their cash out of Russian accounts before sanctions kick in next week clan.

Russia is certainly trying to move its assets beyond the reach of US regulators or the governments of their allies, not an easy task considering the tangled web of Rothschild controlled banks and investment houses.

What the Ukraine crisis may come down to in the end is this question: is the world more frightened of US regulators than it is of Putin’s tanks and polonium and China’s holdings of western debt.

The financial panic goes far beyond Russia, it is an indicator of the stress in the global financial system. “Countries are intervening all over the place to defend their currencies, (which means they are tightening their economies).

Meanwhile the Russians have quietly pulled their cash out of the USA to make sure it is not tied up in frozen accounts once the sanctions axe falls.

Yesterday Zero Hedge reported that China is suspected of having withdrawn (sold to the Federal Reserve) the near USD-equivalent in government debt bonds. a far likelier candidate was Russia, which as any fule kno, has had a bit of a falling out with the USA / EU and the global financial system in general.

We will not know for certain what has happened until half yearly figures are reported in June but what Russian official institutions have done with their Treasury bonds and dollar reserves could be merely the beginning.

The Financial Times reports that in covert and not so covert preparations for financial sanctions (which would include account freezes and asset confiscations following this Sunday’s Crimean referendum) the Russian oligarchs have already pulled billions from banks in the west thereby essentially making the biggest western gambit – that of going after the wealth of Russia’s 0.0001% – moot. If that is the case, the world has more to fear from Russia and China than the American toothless tiger.
UPDATE

China Warns of ‘Retaliatory Action’ and ‘Unforeseeable Consequences’ Over U.S. Monday Deadline

From: Shit Hits The Fan

It’s quite obvious, based on Kerry’s statement, that the Obama Administration really has no idea what to do, as they are still talking through “various options,” something that probably should have been worked out well before President Obama began slinging rhetoric over the crisis.

What the Obama administration assumes will happen is that they’ll force Russia into compliance by coming after their economy. Obama will hit the Late Night TV circuit to tout his success, we’ll all laugh about it, and then go on our merry way. Putin will be left embarrassed and laying in the fetal position sucking his thumb. At least that’s the plan.

But two can play at that game and China, which has stood by Russia’s show of force in Europe since the get-go, has now upped the ante.

It’s a brilliant move designed, once again, to show the world that President Obama and the United States are no longer running the show.

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