Foreign Central Bank Holdings of US $ went Off a Cliff Last Week

[gunDriller]

http://i54.tinypic.com/okq3is.jpg

from JS Mineset
http://jsmineset.com/2010/09/16/central-banks-dump-57-billion-of-us-agency-debt/

and
http://jsmineset.com/wp-content/uploads/2010/09/Custodial-Accounts-9-16-10.pdf

"This week a big development took place which bears further scrutiny. It occurred in the Agency Debt category where Central Banks dumped $57 billion worth of US agency debt. That is the largest one week drop that my records going back six years show. They are now at the lowest level in three years.

The drop is so extreme and so severe that I am wondering if it might be a clerical error that will be corrected next week. If not, it could well be that we are seeing signs that foreign Central Banks are getting serious about diversifying their reserves away from US dollar backed paper. Given the uncertainties surrounding the other fiat currencies globally, it is no stretch of the imagination that some of this money from the sale of such debt is making its way into the gold market."


mighty steep looking curve.

[Ares]

So that's what gold and silver were sniffing out.

[Gaillo]

Beautiful find!

Definitely NOT good news for the average (non-PM-holding) American! 8)

[Plastic]

This does not bode well for anyone on earth that has no PM's period. On the bright side (if there is such a thing), those snobby people who think they are rich due to paper wealth (better than you types) may soon be willing to prostitute their bodies in exchange for a bag turnips or a clump of stale bread.

[Dogman]

Hyperinflation here we come.... :yuk

[gunDriller]

it's an ominously steep curve.

might take a week to confirm that it's not a clerical error, like the Mineset guy says.

but i can't help but wonder about the connection between this and the shorts being overwhelmed recently, and prices going up.

if it's coincidental, or it's connected in some fundamental way, like "fiat currencies fall in value when central banks reject the fundamental reserve currency at an increasingly parabolic rate".

i wonder how options expiry & market manipulation behavior will change in these conditions.

i was thinking there would be a dip to $1230 to $1220 at one of the next 2 witching days, the week of Sept. 27 for Comex Gold Options Expiry.

[Glass]

When they "dump" does that mean those CB's sold the debt or does it mean they "failed to buy" the expected amount of debt?