Showing posts with label reconstruction. Show all posts
Showing posts with label reconstruction. Show all posts

Thursday, April 21, 2011

"Five Sigma" Evidence Of Japanese Repatriation: Meet The Country That Sold The World

http://www.zerohedge.com/article/five-sigma-evidence-japanese-repatriation-meet-country-sold-world

Notes:
1) in the world of statistics and probabilities, a five standard deviation event is extremely rare--an outlier with 0.xxxxxxx1% likelihood, with x = a lot of zero's.  I'm being mathematically blunt to make a point.
2) the Japanese Central bank will no longer be buying foreign sovereign bonds (including US Treasuries) as they will be selling assets from their reserves in order to fund the reconstruction of their country after the earthquake, tsunami, and nuclear meltdown disasters.
3) Japanese selling (vs. buying) of US Treasury bonds (they hold approximately $900 billion) will put selling pressure on US Treasuries, which will reduce demand for said bonds, driving yields and interest rates up.
4) item (3) above will undermine the Fed's QE program, which was implemented to reduce interest rates in the US.  Rising rates will be exacerbated when the Fed stops monetizing US Treasury debt in June.
4) Steve Liesman, the government shill on CNBC, will deny all of the aforementioned.