Another "Reassuring" Sovereign Debt Chart........

Almost as "impressive" as this chart...... Taken from Dylan Grice Discusses When To Take Profits On Gold: Hint - Not For A Long While via ZH UPDATE: Speaking of Portugal and sovereign risk: a downgrade

Fast so "eindrucksvoll" wie dieser Chart...... Mehr zum Chart gibt es in Dylan Grice Discusses When To Take Profits On Gold: Hint - Not For A Long While via ZH UPDATE: Speaking of Portugal and sovereign risk: a downgrade

A reduction of this magnitude without a depression and social "tensions" is highly unlikely ...... Especially when the numbers are based on "realistic" forecasts that even would make "Wall Street Finest" proud.....

Eine Reduzierung in dieser Größenordnung ist ohne eine gefühlte Depression sowie starken sozialen "Spannungen" nicht vorstellbar..... Besonders vertrauenerweckend ist zudem das die Prognosen auf gewohnt konservativen Annahmen basieren die selbst Wall Street Finest blaß aussehen lassen..... ;-)

via NYT

This explains why GOLD Is Not A $ Story........ Wouldn´t also surprise me if charts like this won´t be seen as "unusual" any more down the road......

Damit erklärt sich auch leicht warum GOLD keinesfalls lediglich eine $ Story ist........ Zudem befürchte ich insgeheim das selbst zur Zeit noch aussergewöhnliche Charts wie dieser nicht länger die absolute Ausnahme bleiben......

The following story fits perfectly.......

Die nachfolgende Meldung passt da hervorragend ins Gesamtbild......

Obama Pays More Than Buffett as U.S. Risks AAA Rating

March 22 (Bloomberg) — The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama. Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg.

Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also traded at lower yields in recent weeks, a situation former Lehman Brothers Holdings Inc. chief fixed-income strategist Jack Malvey calls an “exceedingly rare” event in the history of the bond market.

Reassuring........ At least the worldwide banking system is now "well capitalised" and not in danger of needing another bailout....... ;-)

Sehr vertrauenserweckend.... Immerhin sind ja inzwischen die Banken weltweit "well capitalised" und dürften die Sanierung der Staashauhalte auf Jahre hinaus nicht weiter belasten..... ;-)

Maybe This Time It Is Different.........

So far every bet against the Japanese bond market was a disaster..... But the latest move from the GPIF ( $1.37 trln / 66.32percent of its assets in domestic bonds ! see Profile GPIF Government Pension Investment Fund, Japan ) is really looking "unconventional".....

Bisher ist jeder der gegen japanische Staatsanleihen (JGB) gewettet hat übelst auf den Bauch gefallen.... Da der letzte Schritt des 1.37 trln $ schweren und zu knapp 66% in JGB´s investierten GPIF ( mehr Details GPIF Government Pension Investment Fund, Japan ) allerdings doch recht "unkonventionell" daherkommt ist der Ausgang zwischen Bullen und Bären wohl ungewisser denn je.....

H/T Claire Morel / Reuters

‘Japan’s brewing fiasco’ SocGen’s Dylan Grice via FT Alphaville

The biggest JGB holder on the planet – the Government Pension Investment Fund (GPIF) – which has already admitted it’s no longer able to roll maturing bonds, has announced that it will open credit lines so it doesn’t have to sell them to fund its obligations…

To spell that out: we are going into a year in which the government has ¥213 trillion of bonds to roll over… and the biggest holder of JGBs is openly admitting he has no new inflows of money

Click here & here to get the entire report... Some pretty scary charts & the following stat............

Den kompletten Research Report gibt es hier & hier ... Einige extrem unschöne Charts sowie die nachfolgende Zahl..........

So who will fund the Japanese government´s deficit in the future? It is not likely to be the international capital markets, especially if its bonds are offering only a 1.5% yield.

But if international investors were to demand triple that, pricing JGBs in line with international bond market peers (all priced too generously in my opinion) the game would soon be up because Japan´s current debt service already amounts to 35% of pre-bond issuance revenues.

H/T Zero Hedge

For more on this topic make sure you visit the excellent slide show Japan - The Point Of No Return from Vitaliy N. Katsenelson via Barry

Wer mehr zu diesem Thema sehen möchte dem empfehle ich die erstklassige Ansammlung von Charts Japan - The Point Of No Return von Vitaliy N. Katsenelson via Barry

GOLD Is Not A $ Story........ ;-)