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Why Belgium Makes Sense as the Mystery Buyer of Massive Amounts of U.S. T-Bonds

By smaulgld   2014 Jun 5, 12:48am   763 views   2 comments   watch (0)   quote      

It perhaps makes sense now why Belgium has been buying massive amounts of U.S. Treasuries recently. If the European Central Bank is now going to charge interest to banks to hold money there, far better for European banks to hold their reserves in U.S. Treasuries that pay some interest.

We have long pondered how would the Fed keep interest rates low if it stopped buying 60-90% of the newly issued U.S. Treasuries. Clearly there was no apparent large replacement buyer that could buy U.S. Treasuries in such amounts.
http://smaulgld.com/negative-interest-rates-europe-means-europe-buys-u-s-treasuries/

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1   smaulgld   2014 Jun 5, 1:52am     ↑ like   ↓ dislike   quote    

Scope of Belgium's Treasury buying recently

http://smaulgld.com/foreign-holdings-u-s-treasuries/

2   smaulgld   2014 Jun 5, 4:43am     ↑ like   ↓ dislike   quote    

The Professor says

smaulgld says

the Fed keep interest rates low

Don't you know that the Fed only has no real power?

Right they had no idea and nothing to do with the ECB's decision today to go to negative interest rates!

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