Or perhaps this is the end of the beginning. Regardless, let\u2019s start with the news that came out today\u2026<\/p>\n
U.S. Investment Outflow Hits Record as China Cuts Holdings<\/a><\/p>\n By Kasia Klimasinska –2014-08-15<\/strong> The U.S. posted a record cross-border investment outflow in June as China<\/strong> and Japan reduced their holdings of Treasuries<\/strong> and private investors abroad sold bonds and notes.<\/em><\/p>\n The total net outflow of long-term U.S. securities and short-term funds such as bank transfers was $153.5 billion, after an inflow of $33.1 billion the previous month, the Treasury Department said in a report today. The June figure, and $40.8 billion in net selling of Treasury bonds and notes by private investors in June, were the largest on record, the Treasury said.<\/em><\/p>\n \u201cRight at the beginning of June, you had a very strong sell-off of Treasuries and that\u2019s what frightened a lot of private investors,<\/strong>\u201d Gennadiy Goldberg, U.S.<\/em><\/p>\n <\/p>\n Uh oh. Not only does this register a solid 5.0 on our Headline #95, but it signals that there might be some big trouble coming up ahead. Our regular readers know that when US treasuries can no longer be pawned off in the global casino, that either the Federal Reserve will buy them to keep the charades going OR the Fed will stop buying and let the whole house of cards fall.<\/p>\n Is that what is happening here?<\/p>\n By the way, it was Tessie\u2019s dream that mainly got this meme started. On July 2, 2014 her Project August dream depicted a white house selling everything off so that they could afford $50,000 drapes.<\/p>\n Interestingly, she wasn\u2019t necessarily dreaming about THE White House, but the house she saw just happened to be white.<\/p>\n Nonetheless, her allegory flowed seamlessly into the bigger context, where White House was quite a big meme, and combined with the money issues, this Proj Aug headline was a breeze:<\/p>\n #95: \u201cTreasuries getting harder to sell to foreign investors.\u201d<\/strong><\/p>\n Well, there you have it. China et al. starting to really reduce their holdings, so a big 5.0 score is indicated here. Plus, how long before the fireworks really begin?<\/p>\n <\/p>\n <\/p>\n <\/p>\n To view more Proj Aug headlines, click here<\/a>.<\/em><\/p>\n
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