There has been a stabbing at Wor-Wic Community College. Parsonsburg Fire Department is responding now.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
Monday, February 22, 2010
Stabbing At Wor_Wic
There has been a stabbing at Wor-Wic Community College. Parsonsburg Fire Department is responding now.
SHOULD SALISBURY DUMP ANOTHER $100,000 PLUS INTO THE MARINA?
At tonight’s City Council meeting, a proposed contract for engineering and construction of new gasoline tanks and pumps at the City Marina is on the agenda – the price is 106,642.50.
Does this make any sense, even if it will allow for gas to be sold there? The marina is not competitive, and has been subsidized by the City for some years. Is continuing to do that with even more money in the public interest even if it is paid for with "Open Space" funds or other free state money?
Does this make any sense, even if it will allow for gas to be sold there? The marina is not competitive, and has been subsidized by the City for some years. Is continuing to do that with even more money in the public interest even if it is paid for with "Open Space" funds or other free state money?
Obama Offers New Plan To Limit Insurance Hikes
Proposal would allow government to nix health premium increases
WASHINGTON - President Barack Obama is making a fresh attempt to rescue his health care overhaul by proposing a measure that would allow the government to deny or roll back egregious insurance premium increases that infuriate consumers.
Coming just days before a White House health care summit with congressional leaders of both parties, Obama's legislative proposal, which will be unveiled later Monday, likely represents the president's last chance to salvage his signature issue.
A White House official, speaking on condition of anonymity because details have not yet been officially released, said the insurance rate proposal would give the federal Health and Human Services Department — in conjunction with state authorities — the power to deny substantial premium increases, limit them, or demand rebates for consumers.
GO HERE to read more.
Does Anyone Know Of A Good Plasma TV Repair Shop?
I have a plasma TV that is in need of repair but I have no clue who is reputable around here. Can you give me any suggestions......
More Proof Joe Albero's Facebook Has More Beautiful Women Than Anyone Else
I'm not kidding. I don't know where they all come from but there are more beautiful women on my Facebook Page than anywhere else I know.
GO HERE and take a look for yourself. The list just keeps growing by the day.
States Attorney Davis Ruark Announces New Name For Child Advocacy Center
At yesterday's Child Advocacy Center Fundraiser, States Attorney Davis Ruark announced they will change the name to reference Sarah Foxwell in the near future.
Sheriff Lewis also attended the event along with quite a few Law Enforcement Officers. The crowd kept Chef Fred's pretty darned full throughout the entire time of the event.
OK, now let me do what I feel is necessary. Where was the Press BEFORE this event? ONE, (WMDT) showed up during the event but WBOC and The Daily Times never arrived. Mind you, (IMHO) its one thing to help the event out by promoting a non profit event in advance. It's another when you USE the event to sell ad space on your show or while you sell newspapers.
Several Bloggers took the time to promote this event in advance and quite a few people showed up because of it. I just find it shameful that the local MSM doesn't get involved in advance any more to help these kind of fundraisers. In fact, just take a look at your local paper any more. It gets thinner by the day and could use some spunk. Same goes with WBOC or WMDT. They mainly have National News instead of Local News.
Oh well, the more they keep this up the bigger Salisbury News grows. All I have been hearing lately is how much people enjoy our 6 PM News Broadcast. The main reason they enjoy it is because we cover LOCAL NEWS. Wake up MSM because the Bloggers are taking over. To us, it's NOT about the money and selling commercials. To us its about the Community.
In closing, Thank You Hope Entertainment! A special thanks also goes out to the fantastic Bands! It was a great time and Chef Fred's, (once again) delivered fantastic food and hospitality.
Mikulski For Senate Announces Campaign Team
(Baltimore, Md.) -- U.S. Senator Barbara Mikulski (D-Md.) announced today she has assembled a team of seasoned senior advisors with extensive experience in both Maryland and national politics for her upcoming re-election campaign.
“When the going gets tough, the tough get going," Senator Mikulski said. "I am not shy, and I am not retiring. And neither is my top-notch team. I'm looking forward to a vigorous campaign."
Democratic campaign veteran Simone Ward is leading the high-powered Mikulski for Senate team that includes well-known media strategist Mandy Grunwald and top pollster Fred Yang.
Campaign Manager Simone L. Ward has a long history of working with women who have successfully run for national office. Most recently, Ward served in the political department at EMILY’s List, advising winning candidates like Congresswoman Donna Edwards (MD-4) and U.S. Senators Kay Hagan (D-N.C.) and Mary Jo Kilroy (D-Ohio). Ward
knows Maryland. She has advised statewide races in Maryland for the Democratic Coordinated Campaign through the Democratic National Committee. Ward is also the former Executive Director of the political association Democratic GAIN where she helped develop strategy and staffing for coordinated and candidate campaigns for more than 10 years.
Joining Ward on Mikulski for Senate is Mandy Grunwald, who serves as the campaign's chief communications strategist. She is founder and principal of Grunwald Communications, which has tallied a win in each and every one of its U.S. Senate races for the last three election cycles, including the campagins of Senators Al Franken, Jeanne Shaheen, Amy Klobuchar, Hillary Clinton, Ken Salazar and Sherrod
Brown. Grunwald is also recognized for her work as media consultant for Hlllary Clinton's historic 2008 presidential bid and for Bill Clinton's 1992 presidential campaign.
Rounding out the team is pollster and Maryland resident Fred S. Yang, a partner in the political division of Garin, Hart, Yang of Hart Research. The political division represents 12 U.S. Senators, including Mark Warner (D-Va.) and Bob Casey, Jr. (D-Pa.). Yang's knowledge of Maryland's political landscape comes from his work for Governor Martin O’Malley, Congressman Frank Kratovil, and Baltimore Mayor Stephanie Rawlings Blake, among others.
Wicomico Library Exempt From Clearing Sidewalks?
If the Wicomico Library has as much foot traffic as they claim, why are their sidewalks still covered with snow and ice. The answer, it too will melt.
Look, no matter what is said, discrimination is clearly a factor within Code & Compliance. I mean no disrespect towards the many hard working men and women within that Department but reality is reality.
If the City wants to threaten fines, why not go after their own Departments first, (including County run facilities)
Even the GOB wasn't properly cared for, according to Code & Compliance rules. The examples that have been set were extremely poor. Mind you, Code & Compliance isn't in charge of snow removal, they're just a Department within the City. Their job is to make sure "everyone" follows the rules. So, that being said, is there legislation enforcing the City/County to be fined as well? If so, had any of the departments we provided images of been fined? I mean, isn't tat like robbing Peter to pay Paul?
Guns Now Legal At National Parks
Gun owners, go ahead and pack heat along with that camping gear.
A new federal law goes in effect Monday that makes it legal to carry a firearm in most national parks in the United States.
The gun law was passed by Congress and signed by President Obama in May.
GO HERE to read more.
What Would Happen If...
1) Reroute any Tarp/ Stimulus funds to pay each homeowner the difference in the assessed value of their home between now and 6/2007… no strings on how to spend it; Americans still reserve the right to make bad decisions. Then repeal the rest of the spending bills.
2) Enact an 11% “Fair Tax immediately, and lay off the IRS employees; they have Unemployment coming. Abolish the Fed payroll taxes, FICA deductions. You keep all your pay.
3) Over the next year, cut all Federal Department employees and management in half. They have unemployment benefits coming, too.
4) Stop further Federal “Emergency” spending. Require a balanced budget. This may cut more Federal jobs. Cut them.
5) Educate people that this is a one time deal, and they SHOULD buy American with their mortgage adjustment money.
6) Throw out the Cap and Trade idea and the 2700 page pile of garbage Health $ takeover bill that we don’t want.
7) Restart the HC debates with Andy Harris’ plan as a starting point.
8) Work the rest of the next 2 years repealing all unconstitutional laws.
Result?
We, the People will have our value back in our homes, and a lot of money will get back to the banks as a result. Those who are in older mortgages will have cash to spend on all realms of small business economy. This country would be hiring everybody and their ex-government working brothers tomorrow morning!
What do you, the People, think?
Orsonwells
2) Enact an 11% “Fair Tax immediately, and lay off the IRS employees; they have Unemployment coming. Abolish the Fed payroll taxes, FICA deductions. You keep all your pay.
3) Over the next year, cut all Federal Department employees and management in half. They have unemployment benefits coming, too.
4) Stop further Federal “Emergency” spending. Require a balanced budget. This may cut more Federal jobs. Cut them.
5) Educate people that this is a one time deal, and they SHOULD buy American with their mortgage adjustment money.
6) Throw out the Cap and Trade idea and the 2700 page pile of garbage Health $ takeover bill that we don’t want.
7) Restart the HC debates with Andy Harris’ plan as a starting point.
8) Work the rest of the next 2 years repealing all unconstitutional laws.
Result?
We, the People will have our value back in our homes, and a lot of money will get back to the banks as a result. Those who are in older mortgages will have cash to spend on all realms of small business economy. This country would be hiring everybody and their ex-government working brothers tomorrow morning!
What do you, the People, think?
Orsonwells
Possible Constitutional Convention
Hey I think you should cover this on your blog to educate MD voters about the potential for a constitutional convention for the 2010 election.
SEC. 2. It shall be the duty of the General Assembly to provide by Law for taking, at the general election to be held in the year nineteen hundred and seventy, and every twenty years thereafter, the sense of the People in regard to calling a Convention for altering this Constitution; and if a majority of voters at such election or elections shall vote for a Convention, the General Assembly, at its next session, shall provide by Law for the assembling of such convention, and for the election of Delegates thereto. Each County, and Legislative District of the City of Baltimore, shall have in such Convention a number of Delegates equal to its representation in both Houses at the time at which the Convention is called. But any Constitution, or change, or amendment of the existing Constitution, which may be adopted by such Convention, shall be submitted to the voters of this State, and shall have no effect unless the same shall have been adopted by a majority of the voters voting thereon (amended by Chapter 99, Acts of 1956, ratified Nov. 6, 1956).
http://mddailyrecord.com/2010/02/03/md-voters-could-opt-for-constitutional-convention/
SEC. 2. It shall be the duty of the General Assembly to provide by Law for taking, at the general election to be held in the year nineteen hundred and seventy, and every twenty years thereafter, the sense of the People in regard to calling a Convention for altering this Constitution; and if a majority of voters at such election or elections shall vote for a Convention, the General Assembly, at its next session, shall provide by Law for the assembling of such convention, and for the election of Delegates thereto. Each County, and Legislative District of the City of Baltimore, shall have in such Convention a number of Delegates equal to its representation in both Houses at the time at which the Convention is called. But any Constitution, or change, or amendment of the existing Constitution, which may be adopted by such Convention, shall be submitted to the voters of this State, and shall have no effect unless the same shall have been adopted by a majority of the voters voting thereon (amended by Chapter 99, Acts of 1956, ratified Nov. 6, 1956).
http://mddailyrecord.com/2010/02/03/md-voters-could-opt-for-constitutional-convention/
Kratovil Co-Sponsor's SAVE Act, Ask He Support 4 Great Immigration Bills
Applaud Kratovil's Co-Sponsoring SAVE Act &E-Verify
Ask He Co-Sponsor 4 Other GREAT Immigration Bills
Obama CUTS Police Funding for Incarcerating Illegals
Congressman Frank Kratovil has co-sponsored The SAVE Act which will make E-Verify mandatory nationwide and strenghten border and interior enforcement, but he has ignored four other great immigration lowering bills.
The four bills that Congressman Kratovil should consider and co-sponsor are H.R. 878 to End Chain Migration, H.R. 2305 to End Visa Lottery, H.R. 1868 to End Birthright Citizenship, and H.R. 2406 to Enhance Local Enforcement.
Let's applaud Congressman Kratovil for co-sponsoring The SAVE Act but his support and co-sponorship is needed for these four bills.
H.R. 2406 will help local law enforcement to arrest and detain illegal aliens and reimburse state and localities for cost of incarceration. Local agencies are in need of funds since President Obama has eliminated this funding in his FY2010 budget.
Ending Chain Migration would stop adult married spouses of family members from emmigrating. H.R. 2305 would end the visa lottery that issues 50,000 green cards every year without regard to humanitarian need, benefit to country or family connection. H.R. 1868 would end automatic citizenship for children born in the U. S. It would require that at least one parent be a U.S. citizen or lawful permanent resident alien.
Let's encourage Congrerssman Kratovil to co-sponsor these three bills plus H.R. 2406 to enhance local law enforcement's detention of illegal aliens.
More information on these bills: www.numbersusa.com/content/node/2277
Ask He Co-Sponsor 4 Other GREAT Immigration Bills
Obama CUTS Police Funding for Incarcerating Illegals
Congressman Frank Kratovil has co-sponsored The SAVE Act which will make E-Verify mandatory nationwide and strenghten border and interior enforcement, but he has ignored four other great immigration lowering bills.
The four bills that Congressman Kratovil should consider and co-sponsor are H.R. 878 to End Chain Migration, H.R. 2305 to End Visa Lottery, H.R. 1868 to End Birthright Citizenship, and H.R. 2406 to Enhance Local Enforcement.
Let's applaud Congressman Kratovil for co-sponsoring The SAVE Act but his support and co-sponorship is needed for these four bills.
H.R. 2406 will help local law enforcement to arrest and detain illegal aliens and reimburse state and localities for cost of incarceration. Local agencies are in need of funds since President Obama has eliminated this funding in his FY2010 budget.
Ending Chain Migration would stop adult married spouses of family members from emmigrating. H.R. 2305 would end the visa lottery that issues 50,000 green cards every year without regard to humanitarian need, benefit to country or family connection. H.R. 1868 would end automatic citizenship for children born in the U. S. It would require that at least one parent be a U.S. citizen or lawful permanent resident alien.
Let's encourage Congrerssman Kratovil to co-sponsor these three bills plus H.R. 2406 to enhance local law enforcement's detention of illegal aliens.
More information on these bills: www.numbersusa.com/content/node/2277
Democrats Trying To Kill The Tea Party Movement
Want to know how to really astroturf a movement? Just ask Democrat money men Craig Varoga and George Rakis
Remember all those accusations last summer from the Obama White House and Democratic congressional leaders like Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi that the Tea Party movement was nothing more than an astroturfed mirage paid for by a few rich Repubican donors?
Well, nobody outside the newsrooms of places like The New York Times and the headquarters of the Democratic National Committee who had actually attended a Tea Party rally took such accusations seriously because of their transparently nonsensical basis.
But that doesn't mean folks on the left don't know how to do real astroturfing. In fact, there are experts at it like Craig Varoga and George Rakis, the guys behind the new effort to discredit the Tea Party movement. Check this out from Democracy21:
"Democrats have created another 'astroturf' group to kill the Tea Party Movement. A new website appeared recently called 'The Tea Party Is Over. Their mission is: 'To prevent the Tea Party's dangerous ideas from gaining legislative traction.' Initially, the website targets three Republican candidates for destruction.
"The website is paid for by the 'American Public Policy Committee,' which is nothing more than a domain name registered to Craig Varoga. Varoga, along with his partner, George Rakis, in a consulting firm called Independent Strategies, are listed on IRS documents as the people responsible for several other astroturf organizations, which include:
* The American Public Policy Committee Donations IRS forms
* Patriot Majority Donations IRS forms
* Citizens for Progress Donations IRS forms
* Oklahoma Freedom Fund Donations IRS forms
* Mid Atlantic Leadership Fund Donations IRS forms
* Public Security Now Donations IRS forms
* Pioneer Majority Donations IRS forms
* Bluegrass Freedom Fund Donations IRS forms
"Each of these so-called organizations list their address at 300 M Street SE, Suite 1102, Washington DC. Neither Varoga nor Rakis occupy this office. It is, however, occupied by Joseph Sandler who is an attorney for the Democratic National Committee."
Read more at the Washington Examiner: http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Want-to-know-how-to-really-astroturf-a-movement-Just-ask-Democrat-money-man-84860827.html#ixzz0gC2nhJmt
Remember all those accusations last summer from the Obama White House and Democratic congressional leaders like Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi that the Tea Party movement was nothing more than an astroturfed mirage paid for by a few rich Repubican donors?
Well, nobody outside the newsrooms of places like The New York Times and the headquarters of the Democratic National Committee who had actually attended a Tea Party rally took such accusations seriously because of their transparently nonsensical basis.
But that doesn't mean folks on the left don't know how to do real astroturfing. In fact, there are experts at it like Craig Varoga and George Rakis, the guys behind the new effort to discredit the Tea Party movement. Check this out from Democracy21:
"Democrats have created another 'astroturf' group to kill the Tea Party Movement. A new website appeared recently called 'The Tea Party Is Over. Their mission is: 'To prevent the Tea Party's dangerous ideas from gaining legislative traction.' Initially, the website targets three Republican candidates for destruction.
"The website is paid for by the 'American Public Policy Committee,' which is nothing more than a domain name registered to Craig Varoga. Varoga, along with his partner, George Rakis, in a consulting firm called Independent Strategies, are listed on IRS documents as the people responsible for several other astroturf organizations, which include:
* The American Public Policy Committee Donations IRS forms
* Patriot Majority Donations IRS forms
* Citizens for Progress Donations IRS forms
* Oklahoma Freedom Fund Donations IRS forms
* Mid Atlantic Leadership Fund Donations IRS forms
* Public Security Now Donations IRS forms
* Pioneer Majority Donations IRS forms
* Bluegrass Freedom Fund Donations IRS forms
"Each of these so-called organizations list their address at 300 M Street SE, Suite 1102, Washington DC. Neither Varoga nor Rakis occupy this office. It is, however, occupied by Joseph Sandler who is an attorney for the Democratic National Committee."
Read more at the Washington Examiner: http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Want-to-know-how-to-really-astroturf-a-movement-Just-ask-Democrat-money-man-84860827.html#ixzz0gC2nhJmt
DISTRICT 38B DELEGATES TO HOLD TOWN HALL MEETINGS
As part of an ongoing effort to keep in touch with community needs, Delegate James Mathias and Delegate Norman Conway will hold town meetings this weekend in Ocean City and Ocean Pines. On Saturday, February 27 from 10:30am-12 noon, the delegates will meet with constituents at the Ocean City Volunteer Fire Department Headquarters located at Coastal Highway and 15th Street. Later in the afternoon from 1:30pm-3:00pm, they will hold a town meeting at the Ocean Pines Library. “We want to thank everyone in Salisbury and Berlin who came out for the meetings. Mathias went on to say “as your representatives your voice and opinion matters as we work through these challenging times”. “Looking forward to seeing you on Saturday, Feb. 27 at Ocean City and Ocean Pines”.
Those who are unable to attend the meetings can contact Mathias and Conway directly at their district offices. Mathias’ office phone is 410-352-3096 and Conway’s is 410-543-9060.
China Reducing Its Holdings Of Treasury Notes
Foreigners are telling us “If you’re going to continue spending, printing and borrowing like there’s no tomorrow — and paying us back with cheaper dollars — you’re going to have to pay us more to buy your bonds.” America’s annual foreign borrowing to fund our debt is now around $2 trillion per year. That represents what foreigners are buying to fund our annual deficits plus the amount of foreign debt we must roll over each year. China has stopped buying and has begun to reduce its holding of US debt. On Tuesday we learn from government figures that foreign demand for U.S Treasurys fell by the largest amount on record in December. China reduced its holdings by $34.2 billion to $755.4 billion. Japan also cut ownership of Treasurys by $11.5 billion to $768.8 billion. As foreigners lose faith in the dollar and reduce their holdings it will force the government to make higher interest-rate payments to attract more buyers, just as it is struggling with big budget deficits. (First sign has just come with the Fed raising the discount rate this week.)
If we are not able to find any real creditor to finance this debt, the Federal Reserve will paper over our funding gap by in effect printing money. The effect, which may not be far around the corner is rising inflation , soaring interest rates and credit that is hard to come by. Americans better hope and pray that there will not be a real run on the dollar.
Ellen ( I have given you details I’ll bet you are not reading in the big media, in the two publications below)
____________________________________________________________________________________________from
MONEY and MARKETS
Just a few days ago, Treasury tried to auction off $25 billion in 10-year notes and $16 billion in 30-year bonds. Investors failed to step up to the plate in either auction — a bright red warning sign for bonds if I've ever seen one!
With the 10-year auction, only 33.2 percent of the notes sold went to so-called "indirect bidders," a group that includes key debt buyers like foreign central banks. That indirect share was well below the 39.3 percent average for the last ten auctions, a sign that foreign buyers are no longer buying aggressively.
Not only that, but the auction's bid-to-cover ratio fell to 2.67 from 3 at the last sale. This indicator measures the dollar volume of bids against the dollar volume of Treasuries being sold. The lower the number, the less aggressive bidders are being.
Finally, the Treasury had to sell the notes at a yield of 3.692 percent. That was higher than the 3.68 percent investors were expecting. Translation: Uncle Sam had to pay up to get buyers to open their wallets!
As for the 30-year bond sale, Treasury had to pay a yield of 4.72 percent, more than the 4.687 percent estimate of analysts. The bid-to-cover ratio was just 2.36, compared with an average over the last 10 auctions of 2.48. And indirect bidders took down just 28.5 percent of the bonds sold, compared to a 10-auction average of 43.2 percent.
There is simply no way to sugar-coat these results. They stink! And the lousy debt auction results aren't the only cause for alarm ...
China Heads for the Hills, Dumps the Most Treasuries on Record!
Foreign creditors own roughly 60 percent of all our marketable debt outstanding. That means we're in hock to the rest of the world like never before in history.
The biggest buyers of our bonds are countries like China, Japan, Russia, and the OPEC block of Middle Eastern nations. And now, we're seeing signs that they're fed up — and starting to head for the hills.
Take China ...
It's been our largest foreign creditor for a long time. But a not-so-funny thing happened in December. It dumped more Treasuries than in ANY month since the government started tracking in 2000! Specifically, China sold a net $34.2 billion in Treasuries. That left it with just $755.4 billion.
____________________________________________________________________________________________
And if you are really interested in how this works, read this except from S&A Digest
At the Federal Reserve, SOMA means, "System Open Market Account." You'll often find SOMA listed among buyers of U.S. Treasuries at auction. For example, at last week's auction of 30-year Treasuries, SOMA accounted for 11% of all purchases, just shy of $1.8 billion worth. Think about this... the Federal Reserve buying more than 10% of a Treasury auction. A glance at other auction results tells me this isn't unusual, making it all the more troubling. The Fed simply prints money out of thin air to buy Treasuries, a purely inflationary act. Besides SOMA, you'll find three other kinds of buyers at Treasury auctions: indirect buyers, primary dealers, and direct buyers. Their actions tell a disturbing tale of last week's auction... So-called indirect buyers of U.S. Treasuries purchased large amounts of Treasuries through one of 18 primary dealers.
These are the big foreign buyers, like China and Japan. In the past four Treasury auctions, indirect buyers accounted for about 40% of purchases. Last Wednesday, indirect buyer purchases sunk to just 29% of the auctioned securities. Asians aren't buying Treasuries like they were. Primary dealers bought 47% of last Wednesday's auction... but these buyers have no choice. They've agreed to purchase Treasury securities in whatever amounts are necessary to ensure a liquid market. They have to buy them. Another group of buyers, so-called direct buyers, purchase small amounts directly from the Treasury. These buyers are unreported and untraceable. At 24% of last Wednesday's auction, they purchased a record high amount of Treasuries. Since nobody knows who these buyers are... the Fed itself could be among them.
If we are not able to find any real creditor to finance this debt, the Federal Reserve will paper over our funding gap by in effect printing money. The effect, which may not be far around the corner is rising inflation , soaring interest rates and credit that is hard to come by. Americans better hope and pray that there will not be a real run on the dollar.
Ellen ( I have given you details I’ll bet you are not reading in the big media, in the two publications below)
____________________________________________________________________________________________from
MONEY and MARKETS
Just a few days ago, Treasury tried to auction off $25 billion in 10-year notes and $16 billion in 30-year bonds. Investors failed to step up to the plate in either auction — a bright red warning sign for bonds if I've ever seen one!
With the 10-year auction, only 33.2 percent of the notes sold went to so-called "indirect bidders," a group that includes key debt buyers like foreign central banks. That indirect share was well below the 39.3 percent average for the last ten auctions, a sign that foreign buyers are no longer buying aggressively.
Not only that, but the auction's bid-to-cover ratio fell to 2.67 from 3 at the last sale. This indicator measures the dollar volume of bids against the dollar volume of Treasuries being sold. The lower the number, the less aggressive bidders are being.
Finally, the Treasury had to sell the notes at a yield of 3.692 percent. That was higher than the 3.68 percent investors were expecting. Translation: Uncle Sam had to pay up to get buyers to open their wallets!
As for the 30-year bond sale, Treasury had to pay a yield of 4.72 percent, more than the 4.687 percent estimate of analysts. The bid-to-cover ratio was just 2.36, compared with an average over the last 10 auctions of 2.48. And indirect bidders took down just 28.5 percent of the bonds sold, compared to a 10-auction average of 43.2 percent.
There is simply no way to sugar-coat these results. They stink! And the lousy debt auction results aren't the only cause for alarm ...
China Heads for the Hills, Dumps the Most Treasuries on Record!
Foreign creditors own roughly 60 percent of all our marketable debt outstanding. That means we're in hock to the rest of the world like never before in history.
The biggest buyers of our bonds are countries like China, Japan, Russia, and the OPEC block of Middle Eastern nations. And now, we're seeing signs that they're fed up — and starting to head for the hills.
Take China ...
It's been our largest foreign creditor for a long time. But a not-so-funny thing happened in December. It dumped more Treasuries than in ANY month since the government started tracking in 2000! Specifically, China sold a net $34.2 billion in Treasuries. That left it with just $755.4 billion.
____________________________________________________________________________________________
And if you are really interested in how this works, read this except from S&A Digest
At the Federal Reserve, SOMA means, "System Open Market Account." You'll often find SOMA listed among buyers of U.S. Treasuries at auction. For example, at last week's auction of 30-year Treasuries, SOMA accounted for 11% of all purchases, just shy of $1.8 billion worth. Think about this... the Federal Reserve buying more than 10% of a Treasury auction. A glance at other auction results tells me this isn't unusual, making it all the more troubling. The Fed simply prints money out of thin air to buy Treasuries, a purely inflationary act. Besides SOMA, you'll find three other kinds of buyers at Treasury auctions: indirect buyers, primary dealers, and direct buyers. Their actions tell a disturbing tale of last week's auction... So-called indirect buyers of U.S. Treasuries purchased large amounts of Treasuries through one of 18 primary dealers.
These are the big foreign buyers, like China and Japan. In the past four Treasury auctions, indirect buyers accounted for about 40% of purchases. Last Wednesday, indirect buyer purchases sunk to just 29% of the auctioned securities. Asians aren't buying Treasuries like they were. Primary dealers bought 47% of last Wednesday's auction... but these buyers have no choice. They've agreed to purchase Treasury securities in whatever amounts are necessary to ensure a liquid market. They have to buy them. Another group of buyers, so-called direct buyers, purchase small amounts directly from the Treasury. These buyers are unreported and untraceable. At 24% of last Wednesday's auction, they purchased a record high amount of Treasuries. Since nobody knows who these buyers are... the Fed itself could be among them.
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