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A $21 trillion Treasuries mystery is bedeviling global markets

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Bloomberg/Liz McCormick, Tracy Alloway and Stephen Spratt

Repost from 3-5-2021

photograph of an elaborate house of cards“Bond traders have been saying for years that liquidity is there in the world’s biggest bond market, except when you really need it.”

USAGOLD note:  It’s not like that need comes and goes.  It is consistent – even ever-present. One wonders what liquidity would be like if the Fed were to suddenly withdraw its support. A full 54% of U.S. government-issued debt in 2020, according to Crescat Capital, was purchased by the Federal Reserve. Add to that the $1.9 trillion stimulus package and ……well, you get the picture. A house of cards, as we have said before, is still a house of cards no matter how elaborate.

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