Fed Is Buying Half Of All US Treasury Bonds Issued. Talk About A Ponzi Scheme!

This chart is amazing.  It shows that over 1/2 of all UST bonds issued in the 2nd quarter, the US Government was a buyer of almost half of all issuance.  When the FED stops their buying in October as per the current gameplan, it’s likely that we could see more foreign interest in the UST’s.  If foreign nations fail to increase their appetite, then it will mean higher rates….of course, unless the US Equity markets tanks and investors sell everything and start buying bonds.  Under SOMA, you can see that the purchases are $164b of $339b.  You can’t keep issuing bonds and then buying them all unless you have funds to do it.  Talk about the Ponzi of all Ponzi Schemes !

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