Friday, October 16, 2009

Treasury International Capital (TIC) Data for August – WEAK…

The net TIC data for August is positive by a paltry $10.2 billion which follows several straight very large negative flow months. Since we run trade deficits each month to the tune of still more than $30 billion, we need these inflows to finance our prodigious debts.

So, in the entire month of August we totaled $10 billion in inflows, yet we were forced to “sell” (print) more than $100 billion PER WEEK! Somebody’s not very good at math…

And this week the Treasury didn’t even offer up their report in .pdf form, lol, perhaps they are tired of seeing people like me post them on their web sites! Not to worry, technology is terrific and we have other ways of showing the data to you, isn’t the internet great!?

Below is the monthly TIC data table containing the latest data for August in the far right column. First look at the top of the page to orient yourself to the dates in discussion, then go down to the bottom and look at my color highlights…

(click to enlarge)

There you see the green $10.2 positive net figure for August, and just to the left of that are the three prior months, all hugely negative. Now, in blue, you see that in 2008, net inflows were a WEAK $410.5 billion during a year where we were still running $50 to $60 billion deficits. What’s stunning here is in dark red, showing that the net inflows for all of 2009 through August are NEGATIVE 40.3 BILLION! That's a $450 billion swing this year compared to last, or nearly half a trillion dollars!

They can claim that foreigners are still financing our debts all they want, they would be wrong. If you are wondering what’s being sold in the world, it’s anything and everything American. Kind of makes you proud, no? That’s what we get for not dragging the criminals into the streets, we deserve it and worse. Perhaps when Americans re-discover their backbones we’ll take back our country to include our money and banking systems?

Doors – Unknown Soldier: