Since the Global Trade Wars began in April, the world’s central banks and other official institutions dumped more US Treasuries than in any month since January 2016.
But while the selling of Treasuries was to be expected – after all someone had to sell aggressively to push yields sharply higher in April and May – the question was who.
It wasn’t Beijing, because after shedding a modest $6 Billion in April, China actually bought $1.2 Billion in Treasury’s in May, leaving its holdings largely unchanged over the past month.
And while Japan did sell $12 Billion in TSY’s in April, it more than made up for its in May when it purchased $17.5 Billion, bringing its total to $1048.8 Billion in May, which means that over the past two month, Tokyo was a net buyer of US paper.
Meanwhile, the third most prominent holder, hedge funds, aka “Cayman Islands”, bought for a second consecutive month, adding another $5 Billion.
Canada, Spain, Poland, Belgium and the Netherlands are the worst contributors of US Treasuries in the world.
So now, Russia also liquidated a whopping half of Russia’s Treasury holdings, which declined by $47.4 Billion to just $48.7 Billion – the lowest since 2008 – from $96 Billion in March.
Moscow did not stop and in May he continued what was an outright liquidation of Russia’s TSY holdings, which plunged by another $40 Billion, or 82%, from $49 Billion to just $9 Billion in May. This totals over $100 Billion at the start 2018.
In other words, in just two months, Russia sold a whopping $81BN in treasury’s, a liquidation flow that was likely responsible for much if not all the blow out in rates over the period.
So just like last month, as the Yuan-denominated oil futures were launched, trade wars were threatened, and as more US sanctions were unleashed on Russia – if this wasn’t a dress-rehearsal, carefully coordinated with Beijing to field test what would happen if/when China also starts to liquidate its own US Treasury holdings.
This is the only non violent method to bring down the US Ponzi empire. Every country that wishes to be free should start doing this and stop trading in the dollar.
It was about time Russia stopped cooperating and collaborating with the evil of Zionism.
Russia Insider.com / ABC Flash Point Economic News 2018.