Jester’s Place

[JESTER] HELLO EVERYONE… HAPPY SUNDAY…

[diditrvyeet] Jester i was at my sister’s last night so missed the chat but caught up in the forum…thanks for the summary of the state of the reset

[JESTER] diditrvyeet NO PROBLEM… I GOT EVEN MORE CONFIRMATION THAT IS THE WAY IT IS GOING TODAY… I FINALLY JUST CALLED AND SAID…. WHAT THE HECK ABOUT ALL THIS STUFF IN THE DINAR WORLD? SHE WAS LIKE…. YOU SHOULD KNOW THEY ARE MISLEADING PEOPLE ON PURPOSE… IT WAS ALWAYS TOLD THAT WOULD HAPPEN… THINGS THEY ARE SEEING THEY DO NOT UNDERSTAND…

[JESTER] I WAS GOING TO PUT A LINK THEY SENT ME ON MY FB PAGE…. BUT I DO NOT KNOW IF I AM ALLOWED TO EXPLAIN THE BACKGROUND WITH THE OTHER INFO I GOT… HAHAHA

[diditrvyeet] JESTER yes wow i remember that being said of the misleading but on purpose, yuk…

[JESTER] OKAY SO I DID… THE FB PAGE… ARTICLE IDENTIFIES THE PROBLEM… IT IS FREE DOMAIN SO NO ISSUE THERE….

[JESTER] diditrvyeet YES WELL THERE ARE A LOT OF PEOPLE THAT ARE FALLING INTO THE TRAP OF BELIEVING THE BS THOSE GUYS ARE PUTTING OUT…

[JESTER] TAKE A LOOK AT THAT ARTICLE… IT IS COMPLICATED… BUT I BEEN TELLING YOU THIS THING IS VERY DEEP AND COMPLICATED ALL ALONG….

[JESTER] TO SOLVE THOSE PROBLEMS SOLUTIONS NEED TO BE EFFECTED…. THAT IS WHAT IS GOING ON…

[JESTER] THAT IS ABOUT ALL I CAN SAY OUT LOUD… HAHAHA

[nansue] i remember them saying long ago that we would be mislead but on purpose

[GATEXVET] Jester agree this is bigger than any of us. My question is I pray that the people that can fix this on-going modern day enslavement are people of integrity and will succeed.

[Sandhaul] Jester could you put a link to the article in here… for those of us who do not FB?

[JESTER] Sandhaul I’D RATHER NOT… THEN IT GETS ALL OVER RECAPS…

[JESTER] Sandhaul HELL NEVER MIND… NO ONE IS PAYING ATTENTION TO ME ANYWAY…

https://www.zerohedge.com/news/2019-03-10/64-trillion-question-foreigners-stepping-aside-who-will-buy-us-treasuries

[Sandhaul] Jester thanks… your faithful are.. I remember you telling us it would have to be undone a step at a time…

[truth] Truth always wins – but may not be popular.

[mentoredlife] Jester, when I was first introduce to this I bought into all the “tomorrow” and “soon” hype and admit to sitting back counting my $$$ for far too long. Soon after that you appeared on the scene and I remember you saying to get back to work, and to be honest I didn’t want to hear it for a long time. But that was what got me to start wondering why the Gurus were saying all the same things over and over, but always being wrong. From then, I’ve only been coming here, went back to work, and thank you for that!

[JESTER] mentoredlife WELL THANKS FOR LETTING ME KNOW THAT… I DO APPRECIATE KNOWING IT…

[JESTER] YOU HAVE ALL MADE ME FEEL BETTER NOW… THANK YOU FOR THAT…

The $64 Trillion Question: With Foreigners Stepping Aside, Who Will Buy U.S Treasuries?

by Tyler Durden

Sun, 03/10/2019 – 18:25

During its latest, quarterly meeting, the Treasury Borrowing Advisory Committee (aka the TBAC, which many years ago we dubbed the Supercommittee That Really Runs America, an assessment which 8 years later Bloomberg now generally agrees with), released minutes of its Jan. 29 meeting held at the Hay-Adams Hotel in conjunction with the U.S. government’s quarterly refunding announcement.

While there were many topics of discussion (discussed previously here), the TBAC highlighted two key areas of concern: i) the soaring US budget deficit, and specifically the possibility of significant financing gap over next 10 years amounting to over $12 trillion and the potential need for more domestic investor participation if foreign reserve growth slows; and tied to that ii) the worry that since “foreign investors already hold significant dollar debt”, and have been paring back substantially on their Treasury purchases in recent years, the US will have to increasingly rely on domestic savings to fund its future budget deficits.

Of particular note, the TBAC said, tongue in cheek, that while the “USD is still the dominant reserve currency”, reserve managers have been very gradually increasing allocation to other currencies, and that the USD share of FX reserves has steadily come down from 72% in 2000 to 62% now. It also pointed out that other countries with significant debt issuance needs (as a share of GDP) depend far more on domestic savings. As a result, “the Treasury should plan to meet financing needs more domestically than in the recent past.”

Which brings up a key question: who is buying US Treasurys, and who will be buying US Treasurys for the foreseeable future.

To address just this question, on Friday Deutsche Bank’s team of economists and credit strategists led by Peter Hooper, Brett Ryan and Torsten Slok among other, published a presentation titled “Who is buying Treasuries, Mortgages, Credit and Munis” which seeks to address just the concern framed by the TBAC, and which will soon emerge as the most critical one for the US Treasury market (the biggest in the world), especially if public support for MMT (i.e. helicopter money to finance unlimited political promises) gains social traction.

This is a growing problem just as the share of Treasuries as a share of total US debt outstanding is at an all time high…

Which brings us to arguably the key chart which highlights the TBAC’s main concern: whereas the US budget used be financed by foreigners, it is now financed almost entirely by domestic investors, as some of the largest US creditors such as China are quietly exiting stage left.

Meanwhile, as foreigners refuse to buy up any more US paper, in addition to the Fed rolloff, the relative share of Treasuries held by the Fed is declining, mainly due to the exploding Treasury supply.

And with the Fed selling alongside foreign investors, domestic sources of funds such as real money, banks and households (which is a plug in the Fed’s Flow of Funds report), have no choice but to buy Treasuries.

Full post with all charts and graphs here:

https://www.zerohedge.com/news/2019-03-10/64-trillion-question-foreigners-stepping-aside-who-will-buy-us-treasuries