Wednesday, November 12, 2008

Hitting the wall?

This is a particularly interesting press release on the site of the US federal reserve.

It seems to suggest that the US attempted to shift US $150bn in bonds today - offering people the opportunity to purchase US government securities - which as they are priced in dollars, effectively prop up the dollar itself and finance the US national debt. This isn't news, it is a regular happening.

So what is different in this press release? What's different is, of the $150bn on offer, only $12bn was sold.

This may be nothing, or I may have misunderstood seriously - but if the willingness of the world to fund the ongoing debt of the US by purchasing dollars is coming to an end, then it is time to batten down the hatches...

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