mid-March, there was a brief scare after the start of the Ukraine conflict,
custody holdingsplunged by a
record $104.5 billion (if promptly bouncing back the following week), leading
many to believe that Russia may have dumped its Treasurys, or at least change
its bond custodian. We noted that we wouldn't have a definitive answer until the
May TIC number came out to know for sure how much Russia had sold, or if indeed,
anything. Moments ago the MayTIC numbersdid come out, and as expected,Russia indeed dumped a record
$26 billion, or some 20% of all of its holdings, bringing its post-March total
to just over $100 billion - the lowest since the Lehman crisis.
shocking as this largely pre-telegraphed dump was, it pales in comparison with
Hedge first observed, is the country that has quietly and quite rapidly
become the third largest holder of US paper: Belgium. Or rather,
"Belgium" because it is quite clear that it is not the country of
Begium who is engaging in this unprecedented buying spree of US paper, but some
account acting through Belgian custody.
... to clarify for our trigger-happy
Belgian (non) readers: it is quite clear that Belgium itself is not the buyer.
What is not clear is who the mysterious buyer using Belgium as a front is.
Because that same "buyer", who to further explain is not China, just bought
another whopping $31 billion in Treasurys in February, bringing the "Belgian"
total to a record $341.2 billion, cementing "it", or rather whoever the
mysterious name behind the Euroclear buying rampage is, as the third largest
holder of US Treasurys, well above the hedge fund buying community, also known
as Caribbean Banking Centers, which held $300 billion in March.
In summary: someone, unclear who,
operating through Belgium and most likely the Euroclear service (possible but
a record $141 billion in Treasurys since December, or the month in which
Bernanke announced the start of the Taper, bringing the host's total to an
unprecedented $341 billion!
an unprecedented $381 billion because aswe just learned "Belgium" bought
another $40 billion in March!
this happened as Japan sold $10 billion in TSYs, and as China remained
official accounts actually declined from $4.069 trillion to $4.054 trillion,
which means this is what the US Treasury would classify as a "Private"
summarize, of the total $60 billion increase in foreign Treasury holdings, which
rose from $5.89 trillion to $5.95 trillion,"Belgium" accounted for two
thirds, most likely doing the purchases under the guise of a "private",
again, it is Belgium in "", because whoever is buying through the tiny European
country, whose GDP is just double its reported total TSY holdings, is neither
its government nor its people.
question remains: who? Who has bought a whopping $200 billion in Treasurys using
Belgium as a proxy since October?
ROLAND SAN JUAN was a researcher, management consultant, inventor, a part time radio broadcaster and a publishing director. He died last November 25, 2008 after suffering a stroke. His staff will continue his unfinished work to inform the world of the untold truths. Please read Erick San Juan's articles at: ericksanjuan.blogspot.com This blog is dedicated to the late Max Soliven, a FILIPINO PATRIOT.
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