China and Japan are the largest holders of US Treasuries at the moment, although there are a couple of interesting ones to here…
Note the the guys snatching up US Treasuries, though — Belgium and Luxembourg..? Especially as a percentage of their GDP, this seems a not great investment. And Belgium wasn’t exactly rolling in dough, so where did the $141 billion over the course of three months to buy this crap paper come from? Paul Craig Roberts over at OpEdNews.com suspects the Federal Reserve is trying to pull a snow job on investors by paying Belgium (and Luxembourg at $171 billion and 284% of their GDP!?!) to buy the paper for them after there was a mass sell-off of $104 billion in T-bills.
Another curious aspect of the sale and purchase laundered through Belgium is that the sale was not executed and cleared via the Fed’s own National Book-Entry System (NBES), which was designed to facilitate the sale and ownership transfer of securities for Fed custodial customers. Instead, The foreign owner(s) of the Treasuries removed them from the Federal Reserve’s custodial holdings and sold them through the Euroclear securities clearing system, which is based in Brussels, Belgium.
We do not know why or who. We know that there was a withdrawal, a sale, a drop in the Federal Reserve’s “Securities held in Custody for Foreign Official and International Accounts,” an inexplicable rise in Belgium’s holdings, and then the bonds reappear in the Federal Reserve’s custodial accounts.
So, who is dumping US Treasuries, and is the point to raise prices on US consumers as a form of economic war? The Fed’s usual slippery business looks here to be an attempt to hide the run on Treasuries to protect the dollar.