Monday, June 20, 2011

The Dollar Can't Buy a Friend

H/T to Zerohedge; more bad news for the dollar, the Russians have gotten rid of about 1/3 of their US bonds and plan to buy fewer.  
"Just in time for the end of QE2, when the US needs every possible foreign buyer of US debt to step up to the plate, we get confirmation that yet another major foreign central bank has decided to not only not add to its US debt holdings, but to actively sell US Treasurys. The WSJ reports that "Russia will likely continue lowering its U.S. debt holdings as Washington struggles to contain a budget deficit and bolster a tepid economic recovery, a top aide to President Dmitry Medvedev said Saturday. "The share of our portfolio in U.S. instruments has gone down and probably will go down further," said Arkady Dvorkovich, chief economic aide to the president..."
So China is getting out of the dollar, Japan is out of the market, Russia is getting out... who's left?  The EU?  With Greece moments from collapse, massive protests in Spain and their other problems?  While congress fiddles, anyone with any sense is getting out of the US bonds.  In fact, bonds from any nation don't seem really secure now.  The stock market technical indicators are insisting that trouble's coming.  The EU and US are in trouble, while China has built ghost cities (can you say "bubble"?) and is facing social unrest, themselves.  Looks like it's getting to be time to find a bunker to hide in.

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