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Jim Cook



Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

Best of Bill Buckler
May 6, 2010
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The U.S. Treasury auctioned $11 billion worth of “TIPS” on April 26. They started to sell the regular stuff on April 27 with an auction of $44 billion in two-year paper. With the Greek debt downgrade to “junk,” hardly anyone noticed. Hardly anyone, that is, except the bidders for U.S. Treasury paper.

Indirect bidders (read foreign central banks and governments) bid for only 28 percent of the paper, down substantially from the average demand in 2009. But much more troubling was the massive 24 percent of the paper on offer taken by the so-called “direct bidders.” The rest was presumably taken by the “primary dealers” in Treasury paper. The “direct bidders” had taken as much as 10 percent of the auction on only 12 to 42 auctions since July last year. They had taken that much only six times in all the auctions held by the U.S. Treasury in the five years from the beginning of 2004 until the end of 2008.

Even more disquieting, the identity of those who are included as “direct bidders” is never disclosed. The fact that the amount of Treasury debt taken by “direct bidders” has blown out since the Fed officially ended its quantitative easing at the end of October 2009 has led to speculation that the Fed has not really ended its policy of monetizing Treasury debt after all. More and more analysts (including some mainstream analysts) have come to the conclusion that the “direct bidder” is none other than the Fed. They are almost certainly right, but nobody can know for sure because the “direct bidders” are secret. . .



Ó 2009 – The Privateer

(reproduced with permission)


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