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There are many ways for sovereigns to sell their bonds or roll over existing bonds, and one of those wrinkles we mentioned last week.

By: capt_nemo in ROUND | Recommend this post (0)
Mon, 13 Feb 12 9:59 AM | 44 view(s)
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We saw European banks buying US Treasuries and that is happening. These euro banks buy Treasuries and then put them up for collateral with the ECB and purchase the three-year 1% yield repos being offered by the ECB. This is really another form of quantitative easing. It may be debt but it is also an expansion of the money supply. [This little game allows US Treasury financing and if something goes wrong the ECB, the public, gets caught holding the bag. Obviously this is another part of the Ponzi scheme that the elitists are using to keep the monetary system afloat.

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