Thursday, October 20, 2016

Saudi Arabia Is Selling U.S. Treasury Bonds
& Selling Their Own Bonds In Desperation
Zero Hedge highlights how many central banks have begun to sell their U.S. Treasury bonds - for reasons of challenges in financing budgets, bolstering economic activity & financing wars .. "Saudi Arabia is now set to sell $17.5 billion in the biggest bond sale ever from an emerging-market nation, a number which may still rise thanks to what is a massive oversubscription: as of this moment the orderbook is said to be 'around $67 billion, or roughly 4 times oversubscribed, courtesy of the global financial repression imposed by central banks, forcing investors into the smallest trace of yield." .. "In the latest 12 months we have observed a not so stealthy, in fact quite massive $343 billion in Treasury selling by foreign central banks in the period July 2015- July 2016, something truly unprecedented in size and scope." .. the money is going into wars: "Putting the sale in context, Saudi Arabia clocked up a budget shortfall of $97b last year, equal to 15% of its GDP, prompting the government this year to cut subsidies, wages and spending. Much of the proceeds will be used to stabilize the social order in the kingdom, however we anticipate that billions will also be routed to fund the ongoing war with Yemen, which will ultimately benefit US military contractors, in effect recycling the money from global bond investors into the U.S. Military and Industrial Complex."
LINK HERE to one article
LINK HERE to another related article

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