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Compulsive Hoarder
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http://www.zerohedge.com/article/treasury-redeems-144-billion-bills-first-four-days-may

A few days ago we reported, quite stunned, that the US Treasury had redeemed nearly $600 billion in Bills in the month of April. Alas, the side-effects of an massively short-maturity heavy bond curve will be here to haunts us for a long time: according to today's DTS, in the first 4 business days of May alone, the UST has redeemed $144 billion in Bills. Annualized this number is surely something that even Richard Feynman would not joke about. We have gotten to the point where the roll issue is not a monthly concern, but is becoming a weekly funding threat, and even daily. Of course, as we speculated in December, what better way to raise demand for Treasuries than to stage an equity selloff. Well, we got our selloff, and the 10 Year was trading in the lower 3% range today. However, the risk now is how the sovereign fire will spread through the periphery and into the core. Already, we are seeing that CDS traders are massively betting on a collapse of the UK as the next bastion of sovereign spending lunacy. And when the UK goes, Germany is next, shortly to be followed by Japan and the US. At that point the only buyer of US debt will be the US itself. Which will lead to the final outcome of massive consumer deflation as economic collapse finally strikes home, coupled with asset price hyperinflation, as a gallon of oil hits $10 (and helping the Dow hit 36,000). And as this is not an equilibrium state, the outcome will be, as it always is in these situations, war. Hopefully the US is good as it historically has been at finding its "deserving" opponent, WMDs aside. Otherwise, things may be a little rough for the great declining American civilization after the next 5 years.
 

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Prepared
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Headlines now are suggesting (http://online.wsj.com/article/SB100...0853667156.html?mod=WSJ_Markets_MIDDLETopNews) that regulators can't figure it out.

I find that a little hard to believe. I assume that all transactions leave a paper and/or money trail. Let me guess -- they also have no clue who the guy was who accidentally sold billions in PG that he didn't have either.

And let's say he DID have that kind of ownership. Well, he didn't commit any crimes if that WOULD have been what he intended to do. So we basically have a system in which fully legal activity can cause historic drops in the market. I'd call that a little too much concentration of power/wealth.

Sort of like the whole missing e-mails fiasco from the Bush administration that the corporate media was pushing around a couple years ago. Needless to say that e-mail goes through many systems from A to B, and we assume that all traffic in the DC area is being watched by the NSA/etc.

So here's another example of implausible deniability. What they should have known, they supposedly don't. That old trick where they keep us guessing: are they really this off-guard, or are they dipping into the pot themselves?
 
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