Global holdings of US Treasury Debt
Mark Lundeen , 26 April 2021
During 2007-09 credit crisis the global banking system suffered from a grand-mal seizure. Trillions in their reserves becoming insolvent. The global payment system broke down. There was no way the big Wall Street banks and the financial markets would be spared from his slaughter unless Dr Bernanke and his FOMC began “stabilizing” the financial markets with a brilliant new contrivance; a QE.
As always, we begin with a Bear Eye’s View (BEV) of the Dow Jones, with this BEV chart beginning in January 1982. What’s a BEV chart? It’s a view of a market’s price series where each new all-time high registers as a 0.00%, or a “BEV Zero.” All other data points NOT a new all-time high are converted into a negative percentage claw back from its previous BEV Zero.
This is how Mr Bear looks at a market; new all-time highs as BIG FAT ZEROS, and everything else as a percentage claw back from the bulls. In effect, a BEV series compresses price data into a percentage range of 100%, with a 0.00% new all-time high and -100% total wipeout in market value.
Below, on 11 August 1982 the Dow Jones closed at 776.92, or a Bear’s Eye View (BEV) of -26.13%. The next day a historic advance in the Dow Jones began, an advance that has taken the Dow Jones up:
33,424 points,
4301%,
in the past thirty-nine years. Nothing else like it for the Dow Jones since its first publishing in February 1885.
