China Holdings of US Treasuries Revised Up 30%; An Unsustainable Model

Annual revisions released Monday show that China's holding of US treasuries is 30% greater than reported just weeks ago.

I am not surprised given that persistent rumors of China dumping treasuries made little mathematical sense from a balance of trade standpoint. Instead, I suggested China was accumulating treasuries via trading desks in the UK. We now see that is precisely the case.

Please consider China's holdings of US debt jump 30 percent

China, the biggest buyer of U.S. Treasury securities, owns a lot more than previously estimated.

In an annual revision of the figures, the Treasury Department said Monday that China's holdings totaled $1.16 trillion at the end of December. That was an increase of 30 percent from an estimate the government made two weeks ago.

China was firmly in the top spot as the largest foreign holder of U.S. Treasury debt even before the revisions. But the big increase in Chinese holdings could ease fears that Chinese investors might begin dumping their U.S. holdings. Such a development could send U.S. interest rates rising. That would slow America's economic recovery and increase Washington's costs for financing the $14.3 trillion national debt.

China and Britain were the countries with the biggest revisions in the new report.

The amount of U.S. Treasury securities held by Britain fell to $272.1 billion in the new report. That's a drop of $269.2 billion from the last monthly report which put the Britain's holdings of U.S. debt at $541.3 billion. The holdings of the two countries often show big revisions when the annual report is released.

The reason for the change is that Chinese investors who purchase their Treasury securities in London are often counted as British investors. The more detailed annual report does a better job of tracking the countries in which investors reside as opposed to the location where investors make their purchases.

Even with the revision, Britain remained the third largest holder of U.S. Treasurys.

Japan had the second highest foreign holdings, totaling $882.3 billion at the end of December. The revision was only slightly below the original estimate.

The total foreign holdings of Treasury debt stood at $4.44 trillion at the end of December, according to the new report. That's up 1.5 percent from the estimate made two weeks ago. About two-thirds of U.S. Treasurys owned overseas are held by foreign governments and central banks.

Thoughts on Dumping Treasuries

Please note the comment in the article: "The big increase in Chinese holdings could ease fears that Chinese investors might begin dumping their U.S. holdings. Such a development could send U.S. interest rates rising. That would slow America's economic recovery and increase Washington's costs for financing the $14.3 trillion national debt."

The odds of China dumping US treasuries are tiny. The last thing China wants to do is put massive upward pressure on the Yuan, and dumping treasuries would likely do just that.

Moreover, please consider the basic math. The US runs a trade deficit, so other countries accumulate dollars. For more on the essential math, please see US Dollar About to Lose Reserve Currency Status - Fact or Fantasy?

Given that dollars held by foreign central banks earn no interest, governments buy other US assets instead, notably US treasuries. Last year China's bought massive amounts of US treasuries via UK banks or brokers.

Unsustainable Model

Although it is relatively easy to explain what is happening and why, it's also important to know the existing global currency hegemony will eventually collapse because the current model is unsustainable.

Countries cannot run massive deficits forever.

However, a global currency crisis does not necessarily start with the US dollar, nor does a crisis necessarily happen any time soon. A major crisis starting with the Euro, the Yen, the British Pound, or the Yuan is at least as likely, and the timeframe can be months or years away.

Whenever it happens, don't be caught without gold.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

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Going Further East

Yesterday, we took a look at the opening games for the Western Conference in the 2011 KHL Gagarin Cup Playoffs. One team, SKA Saint Petersburg, had already moved on to the second round after sweeping Spartak Moscow, but the other three series were still on-going. I didn't look at the four series in the Eastern Conference that began on Thursday, so tonight would be an appropriate time to update those skirmishes. One of these teams will represent the Eastern Conference in the Gagarin Cup final, so let's take a look at who is marching towards glory!

(1) Avangard Omsk Oblast vs. (8) Neftekhimik Nizhnekamsk

Avangard was the top team in the KHL this season after having amassed 118 points in 54 games, so there wasn't much hope for Neftekhimik when this series started on Thursday night as 43 points separated these teams in the standings. However, an early goal by Igor Polygalov put the underdogs up just nine minutes into the game! Neftekhimik battled hard and refused to give up any chances through most of the game, but Avangard finally broke through just 54 seconds into the third period. Alexei Kaluzhny scored for Avangard, and the game was tied at 1-1. The two teams continued to play stingy defence, and we were off to overtime after sixty minutes. Just 4:19 into the extra frame, Igor Polygalov notched his second of the night past former NHL goaltender Karri Ramo, and Neftekhimik recorded the 2-1 overtime victory in Game One!

Game Two went on Friday night, and we saw more of the same defensive play in the second act of this series. In fact, both teams held each other at bay through all three periods, sending the game to overtime tied 0-0 as both Karri Ramo and Neftekhimik's Ivan Kasutin were perfect through sixty minutes! It didn't takevery long to decide a winner once overtime started, though. Avangard's Dmitry Semin put the puck behind Kasutin, and Avangard recorded the 1-0 overtime victory in Game Two to even the series at 1-1.

With the series heading back to Omsk on Sunday, there was some concern on the Avangard side about their play. More goals would be needed if the team was to succeed, and we got to see a few more in Game Three. Niklas Persson opened the scoring for Neftekhimik with a shorthanded marker just 2:52 in, but that deficit would be erased by Igor Volkov six minutes later. Renat Mamashev put Neftekhimik up by one goal 2:15 into the second period, but Avangard responded five minutes later when Yegor Averin wired home his first of the playoffs. With less than three minutes left in the second period, Neftekhimik's Libor Pivko deposited another puck behind Karri Ramo as Neftekhimik closed out the period up 3-2. Solid defence was played the rest of the way, and Neftekhimik closed out Game Three with the 3-2 victory to go up 2-1 in the series.

Game Four saw one of the poster children for the KHL come alive. Avangard's Jaromir Jagr, who had been held pointless in the first three games, set up two goals on this night. Avangard's Roman Cervenka also added a pair of helpers as three different scorers found the back of the net for Avangard on Monday. Pavel Brendl was the only player to beat Ramo on this night, and Avangard skated to the 3-1 victory. Once again, the series was tied, and the 2-2 deadlock meant that this series was now a best-of-three!

Game Five of this series is set for Wednesday, March 3, and Game Six appears to be scheduled for Friday. If a Game Seven is necessary, we're looking at a Saturday or Sunday date for that game.

You have to think that Avangard will break pout of their funk and start scoring some goals on Neftekhimik. However, I really like the job that Neftekhimik is doing in neutralizing Avangard's scorers, especially Jaromir Jagr. If Neftekhimik can keep this up, we might see another upset! I'm pulling for Neftekhimik in this one just to see if I can predict both first-seeded teams eliminated in the first round!

(2) Ak Bars Kazan vs. (7) Barys Astana

Kazan are the defending Gagarin Cup Champions, and are looking to make it three KHL Championships in a row! Standing between them and glory are Barys Astana from Astana, Kazakhstan. Game One, like the series above, was a defence-first game as the two teams combined for one goal. Yep, just one. Barys' Vitaly Yeremeyev played an outstanding game, but he was the goaltender who allowed the one goal. Kazan's Jarkko Immonen scored at 13:34 of the first period, and it was all the offence that Petri Vehanen needed as he shut the door on Barys. Ak Bars Kazan win the game by a 1-0 score, and go up in the series 1-0.

Game Two on Friday saw Kazan treat Barys in the same fashion as they did in Game One. Goals by Alexei Morozov, Marcel Hossa, and Alexei Tereshchenko powered Kazan to a second straight victory. How was this game the same, you ask? Petri Vehanen pitched his second straight shutout in backstopping Kazan to the 3-0 victory. It doesn't look promising for Barys when they have yet to record a goal in two playoff games. Kazan jumps ahead 2-0 in the series with the victory.

Sunday's Game Three saw Kazan rolling again as they took Barys to the woodshed. Kazan hung half a dozen goals on Barys as Janne Pesonen, Danis Zaripov, Jarkko Immonen, and Grigory Panin all scored singles while Alexei Morozov recorded a pair of goals. Morozov finished the night with four points, and Evgeny Medvedev had a pair of helpers. Petri Vehanen was looking for his third straight shutout, but his bid to open a playoff series with three straight blankings ended when Lukas Kaspar scored a powerplay goal at 3:04 of the third period for Barys. If you're keeping track at home, that 163:04 of shutout hockey that Vehanen had going. Kazan rolls to the 6-1 victory in Game Three, and Barys found themselves on the wrong end of a 3-0 series deficit.

Game Four has already been completed, and I can tell you that the champs are marching onward. Kazan jumped out to a 2-0 lead on goals by Danis Zaripov and Alexei Tarashchenkov, but Barys made this one interesting. A powerplay goal at the end of the second period by Maxim Khudyakov made it a 2-1 game, and then a shorthanded marker 4:33 into the third period from Roman Starchenko squared the game at 2-2. Less than two minutes later, Zaripov scored again, and Kazan was back up 3-2. With 32 seconds remaining and Barys' Jeff Glass sitting on the bench for an extra attacker, Kazan iced the game and series when Niko Kapanen scored into the vacant net. Kazan wins Game Four by a 4-2 score, and sweeps the series against Barys Astana.

No additional games or predictions are needed as Kazan now gets some precious time to rest up and get ready for the second round as they look to three-peat as KHL Champions!

(3) Salavat Yulaev Ufa vs. (6) Sibir Novosibirsk

Salavat and Sibir may have finished third and sixth in the conference, but the 26-point difference between the two teams became obvious as this series progressed. Game One on Thursday night saw Salavat build a 5-0 before Sibir woke up. Two goals each by Petr Schastlivy and Igor Grigorenko along with a single by Vladimir Anitpov had Salavat up 5-0 with 18 minutes to play. A couple of late goals by Sibir only took some shine off the win as Salavat cruised to the 5-2 victory, and moved to a 1-0 series lead.

Game Two on Friday night saw Sibir jump out in front as Stepan Sannikov scored 4:20 into the second period to open the scoring. That would be the last lead in the game that Sibir would have as Petr Schastlivy, Igor Grigorenko, and Kirill Koltsov scored for Salavat to lead them to a second straight win. Former LA King netminder Erik Ersberg stopped 25 of 26 shots for his second win as Salavat moved to a 2-0 series advantage. Former Nashville Predator Alexander Radulov had a pair of assists for Salavat on the evening.

Game Three had Salavat at home, and they continued to roll. Alexander Radulov had a goal and three assists, Robert Nilsson scored twice and added a helper, Patrick Thoresen record his fourth and fifth assists of the series as Salavat thumped Sibir by a 6-2 score. Alexander Kutuzov had a goal and an assist for Sibir, but it clearly wasn't enough as Sibir's Liv Stefan allowed five goals on 32 shots before being relieved by Yuri Klyuchnikov. With the win, Salavat pushed Sibir to the brink as they led the series 3-0.

With Sibir facing elimination on the road, they would need a substantial effort to get out Ufa and back on home ice. It didn't start well on Monday as Alexander Svitov opened the scoring for Salavat just 2:37 in. Viktor Kozlov made it 2-0 before the opening period was done with his second goal of the playoffs. The hole got deeper for Sibir in the second period as Alexander Radulov scored his second goal of the series with five minutes left in the second. Just to make it a little worse, Svitov scored his second goal of the game and playoffs two minutes later. It was all but over when former NHL star Vyacheslav Kozlov added his first goal of the playoffs midway through the third period. Erik Ersberg shut the door on Sibir as Salavat recorded the 5-0 win, ending the series in a sweep.

Much like the Kazan-Barys series, no additional games nor is a prediction needed as Salavat wrapped up the series this evening. Salavat now awaits to find out who their opponents are in the next series.

(4) Metallurg Magnitogorsk vs. (5) Yugra Khanty-Mansiysk

While these two finished right next to each other in the standings, there was a clear divide in terms of talent when looking at the standings. Metallurg finished 13 points ahead of Yugra in the standings, so there seems to be a clear favorite in this series. Game One seemed like Metallurg had an advantage as they got goals from Juhamatti Aaltonen and Oleg Kvasha over a six-minute span in the second period. However, a powerplay goal by Ivan Khlyntsev pulled Yugra within one goal again. Another powerplay goal by Evgeny Blokhin just 19 seconds into the third pulled Yugra even. However, goals by Metallurg's Petri Kontiola and Enver Lisin less than a minute apart put Metallurg up for good. Georgy Gelashvili closed the door the rest of the way, giving Metallurg the 4-2 victory and the 1-0 series lead.

Game Two in Yugra's hometown of Khanty-Mansiysk saw the home team score first midway through the second period. Ivan Khlyntsev's second goal in as many games put the home squad up 1-0. Former NHL star Sergei Fedorov evened the score less than six minutes later as his shot found its way past Yugra goaltender Edgar Masalskis. 7:50 into the third period, Yugra would jump ahead again as Alexei Pepelyaev notched his first marker of the series. Masalskis would stop everything else thrown his way as he recorded saves on 37 of 38 shots while preserving the 2-1 win for Yugra. With the win, Yugra pulled the series even at 1-1.

Game Three would see another game decided by that one-goal margin. Yugra wasted no time in the opening frame as they got goals from Alexei Pepelyaev, Andrei Sidyakin, and Kirill Petrov to put Metallurg in a 3-0 hole. Juhamatti Aaltonen began chipping away at the deficit with his goal two minutes into the second period. Mikhail Tyulyapkin then restored the three-goal margin 40 seconds later for Yugra. Four minutes later, Enver Lisin drew Metallurg within two again with his second of the series. Sergei Fedorov tacked on another goal for Metallurg five-and-a-half minutes later, making it 4-3 for Yugra through two periods. Both goaltenders held their ground in the third period, giving Yugra the 4-3 victory to put them up 2-1 in the series.

The Monday game was another low-scoring affair. Stanislav Chistov opened the scoring for Metallurg at 18:21 of the first period. Yurga drew even 4:17 into the second period as Dmitry Altaryev beat Georgy Gelashvili to even the game at 1-1. The game-winner was scored at 7:29 of the third period on a penalty shot! Yurga's Dmitry Altaryev hauled down Metallurg's Denis Platonov on a breakaway, so Platonov got a chance to do it all over again. On the penalty shot, he made no mistake as he buried the puck behind Edgar Masalskis. That goal on the uncontested breakaway was the winner, and the 2-1 victory pulled Metallurg even in the series at 2-2.

Game Five goes Wednesday night, Game Six is scheduled for Friday night, and it appears Game Seven will go sometime on Saturday.

As for predictions, I really like Metallurg simply because of their legacy of producing strong teams and great players. While Yurga is an intriguing pick simply due to their underdog status, I have to go with Metallurg.

There are the Eastern Conference series up to this point. I'll try to update these on the weekend to round out who is moving on and who is going home. Of course, we'll check my fearless, albeit uneducated, prognostications and see how I fared with my limited KHL knowledge.

Until next time, keep your sticks on the ice!

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Great post of the day

From John Cole:

A unionized public employee, a teabagger, and a CEO are sitting at a table. In the middle of the table is a plate with a dozen cookies on it. The CEO reaches across and takes 11 cookies, then looks at the teabagger and says “Watch out for that union guy—he wants a piece of your cookie!”

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US Dollar About to Lose Reserve Currency Status - Fact or Fantasy?

A number of sites are commenting on a Bloomberg video in which El-Erian, PIMCO Co-CEO says "Dollar could lose its reserve currency status".



Bloomberg: "Mohammad what does a weak dollar signal to you, a dollar that can't jump up here on a day like we've seen today?"

El-Erian: "It is a warning shot to America that we cannot simply assume flight to quality, flight to safety. That people are starting to worry about the fiscal situation in the U.S. They are starting to worry about the level of debt. They are starting to worry about what they hear about states and municipalities. So, I would take this as a warning shot that we cannot assume that we will maintain the standing of the reserve currency as we have in the past."

Reserve Currency Definition

Before we can debate whether or not the US will lose reserve currency standing, we must first define what it means.

Investopedia defines Reserve Currency as follows.

"A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate."

I accept that definition. Unfortunately Investopedia rambles on with nonsense about the implications: "A large percentage of commodities, such as gold and oil, are usually priced in the reserve currency, causing other countries to hold this currency to pay for these goods."

That sentence is a widely believed fallacy. The reality is no country is obligated to hold dollars to buy goods denominated in dollars.

Currencies are Fungible

Currencies other that illiquid currencies with low or no trading volume (think of Yap Island stones or the Cuban Peso) are fungible. It is a trivial process to switch from one currency to another.

You can buy gold or silver in any country, and I assure you those transactions do not all take place in dollars. Thus, just because a commodity is widely priced in dollars does not mean it only trades in dollars.

That holds true for oil as well.

I keep pointing this out, unfortunately to no avail, that oil trades in Euros right now. There is no selling of Euros to buy dollars on the front causing the oil producers to trade dollars for euros on the back end. The oil states simply sell oil for a price in Euros and then hold Euros in their Forex reserves.

Fact and Fantasy

The first part of what El-Erian said is factual. Here it is again for convenience. "People are starting to worry about the fiscal situation in the U.S. They are starting to worry about the level of debt. They are starting to worry about what they hear about states and municipalities."

Those are true statements. Unfortunately, his "warning shot" regarding reserve currency status is fallacious.

To understand why, let's return to the definition of reserve currency: "A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate."

Foreign Currency Reserve Factors

1. Trade Volumes
2. Trade Deficits
3. Currency Manipulation
4. Hot Money
   

Trade Volumes and Trade Deficit

The US happens to be at or near the top of nearly every country's trading partners. The US runs a trade deficit with most of them. Those trading partners accumulate dollars as a simple function of math. We run a deficit, someone else runs a surplus.

Some wonder why the surplus countries do not buy oil or commodities with their accumulated dollars. OK, what does Saudi Arabia, Iran, or Venezuela do with the dollars then?

Does Iran or Venezuela even hold dollars now? Think of the implications of that answer in light of the widely viewed fallacy that one needs dollars to buy oil.

Regardless, of where the dollars end up, those US dollars will eventually return home. Recall that Dubai tried to buy a US port and China tried to buy Unocal. Both were rejected for security reasons. However, those dollars will return home, with China, Japan, and the oil states buying various US assets.

Currency Manipulation

Most US trading partners do not want their currencies to rise, especially China and Japan.

Consider the Yuan which does not float. To suppress the value of the Yuan, China takes US dollars and exchanges them for Yuan at a pegged rate. China does this hoping to create job and boost exports.

The US calls this currency manipulation and it is. However, it is no more manipulative than Bernanke flooding the markets with US dollars hoping to weaken the US dollar and stimulate growth.

Hot Money

Hedge funds and other speculators have moved money to China banking on currency appreciation.

China needs to maintain currency reserves to allow for the repatriation of those US dollars. Michael Pettis at China Financial Markets points out that most of the hot money inflows into China are done by Chinese businesses that understand how to get around rules and regulations regarding currency inflows.

That argument make perfect sense, but the math remains the same regardless of where the hot money comes from.

Global Beggar-Thy-Neighbor Policies

It is pretty pale to suggest the end of the US dollar as a reserve currency when countries hold dollars as a function of math, then hold still more dollars to suppress their currencies, hoping to keep their exports up to "stimulate growth".

Mathematical Impossibility

Another mathematical relationship says the dollar, the pound, the Yen, and the Yuan cannot all be weak at the same time (relative to each other). Yet that is precisely what every country wants. It's mathematically impossible.

You can see the effect in rising commodity prices.

If commodity prices were a function of the US dollar alone, then they would be rising in US dollar terms alone. Instead there is upward pressure on commodities in all currencies.

At some point the desirability to hoard commodities will peak.

Zero Hedge Comments

Zero Hedge commented on reserve currency status about a week ago.

Regarding El-Erian's statement: "I would take this as a warning shot that we cannot assume that we will maintain the standing of the reserve currency as we have in the past"

Zero Hedge quipped:

That's a given - the question however remains, which fiat currency, if any, is willing and ready to step in and replace the USD? With all eyes continuing to be look at the CNY, how long before China finally takes the plunge to find out just who is the real reserve currency in the world?

Will Another Fiat Currency Replace the Dollar?

For starters, Zero Hedge ignored the essential trade deficit math. The US runs a trade deficit, someone else must run a trade surplus.

Second, Canadian dollar and the Swiss Franc do not have enough trading volume. More importantly, there are not enough Canadian Dollars or Swiss Francs to go around. Look at what happened to Iceland when too many plunged into the Icelandic króna.

The Canadian and Swiss economies are simply not big enough for them to be global reserve currencies. In regards to the Euro, is Europe in a better fundamental situation than the US? Would it matter even if it was? To answer the second question, please remember trade deficit math.

As for the Yuan, it is complete silliness to suggest the currency of a command-economy dictator-led country that will not even float its currency will be some sort of major reserve currency.

To the extent that China trades with Russia, South Korea, etc., local reserves in varying currencies can happen (and are happening already), but the global significance of it is wildly overstated. The amounts in question are tiny, as a simple function of math.

Will the dollar remain the global reserve currency forever? Of course not. However, it is highly unlikely any of the presumed leading Fiat candidates including the Yuan and the Keynesian wet-dream IMF SDRs (Special Drawing Rights), will take the dollar's place. SDRs are essentially a basket of currencies.

The concept of trading in baskets of currencies backed by nothing is even more ridiculous than the existing setup. People do not buy goods and services in baskets of currencies.

What can replace the dollar?

Gold, or a mechanism like gold that would impose a hard restrictions on perpetual deficits is what its takes to restore sanity. However, we may not see a significant move towards gold until there is a massive currency crisis or revolt against fiat currencies in general, not just the US dollar.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

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2011 Gettysburg Quarter Coin Production

The US Mint has recently indicated the preliminary circulating coin production figures for the 2011 Gettysburg National Military Park Quarter. For the time being, the figures represent the lowest production for any issue of the America the Beautiful Quarters series.

Total production was 61.2 million, comprised of 30.4 million coins struck at the Philadelphia Mint and 30.8 million coins struck at the Denver Mint.

These figures are noted as preliminary since the US Mint has indicated that they may restart production of any design within the year of issue, specifically to fulfill demand for bulk purchase program. This program allows bulk bags of 200,000 quarters ($50,000 face value) to be purchased for face value plus a 3% handling charge.

During 2010, the Mint did restart production for the Hot Springs National Park Quarter. Initially, production was reported as 59.6 million across both facilities. The US Mint later produced an additional 10 million coins, presumably to fulfill bulk orders. For the previous State Quarters Program, once production of a particular design had stopped, the mintages were final.

The mintages for the America the Beautiful Quarters to date are shown below. The figures for the 2010 releases are final, while the 2011 release remains preliminary.

America the Beautiful Quarter Mintages

	Denver	Phil.	Total
Hot Springs Quarter	34.00 M	35.60 M	69.60 M
Yellowstone Quarter	34.80 M	33.60 M	68.40 M
Yosemite Quarter	34.80 M	35.20 M	70.00 M
Grand Canyon Quarter	35.40 M	34.80 M	70.20 M
Mount Hood Quarter	34.40 M	34.40 M	68.80 M
Gettysburg Quarter	30.80 M	30.40 M	61.20 M

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Football Shaped UFO As Large As A Carnival Cruise Ship Over Allentown Pennsylvania

Date: February 27, 2011

Time: Evening.

I found your email online. I know this is going to sound crazy, but I have a sighting to report. If I didn't see this with my own two eyes I wouldn't have believed it. I always laughed when people told their stories about these" football shaped objects in the sky, now its no longer so funny to me. I was both amazed (as I tried to process what I was seeing) and alarmed at the size of this object.

It moved effortlessly, silently, and suddenly changed directions and vanished. It did not speed off like I have heard other people say when witnessing similar events. It was suddenly just gone. For something to disappear instantly, (at least something of this size,), it would have to be moving at accelerated speeds not yet developed. Below is an entire description of what I saw.

Location: Roth Street, 1 block from Fairmont street intersection, Allentown, PA. Object: spotted in the sky over a grouping of trees.

Description of Object: Football shaped, flying high, but not as high as a plane, flying in a diagonal pattern. Not sure of actual size. It appeared to be no less than the size of a very large Carnival cruise ship (as best I can describe).

It was definitely larger than the two commercial airliners that were in the sky at the same time. This was not a meteor or falling star. I am positive. This object moved deliberately. It was illuminated from the inside, red on the tail end, the rest was a soft, but bright white.

I can best compare the illumination to a frosted window that is lit from behind. Again, these were not external lights. When I saw the manner in which it was lit, the best word to describe what I thought was "intelligent". This is difficult to explain.

It was a perception, followed by a sensation of "awareness" that startled me. I know what I saw. I don't expect you to believe me, but I know what I saw. Again I know how crazy it all sounds. I cant believe no one has called or reported this sighting. I couldn't have been the only witness to this. Duration: 7-10 seconds.

If you have seen anything like this in the same area please be kind enough to contact Brian Vike at: sighting@telus.net with the details of your sighting. All personal information is kept confidential.

Sightings.com website: http://www.sightings.com/

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Clinton Tells Qaddafi "Surrender Now"; More Protests in Yemen, Bahrain, Oman

Libyan rebels now hold about 80% of the country. France is sending an airlift of medical supplies, including doctors and nurses to aid the rebels. Think anything else might be in those planes?

Regardless, Qaddafi is holed up in Tripoli with options growing smaller by the day. The only country that might take him is Venezuela. Why anyone would take him is beyond me.

US Secretary of State Hillary Clinton has stepped up the rhetoric as International Pressure on Qaddafi Intensifies.

An international campaign to force Col. Muammar el-Qaddafi out of office gathered pace on Monday as the European Union adopted an arms embargo and other sanctions, as Secretary of State Hillary Rodham Clinton bluntly told the Libyan leader to surrender power “now, without further violence or delay.”

Germany proposed a 60-day ban on financial transactions, and a spokeswoman for Catherine Ashton, the European Union’s foreign policy chief, said that contacts were being established with the opposition.

Italy’s foreign minister on Sunday suspended a nonaggression treaty with Libya on the grounds that the Libyan state “no longer exists,” while Mrs. Clinton said the United States was reaching out to the rebels to “offer any kind of assistance.”

France said it was sending medical aid. Prime Minister François Fillon said planes loaded with doctors, nurses and supplies were heading to the rebel-controlled eastern city of Benghazi, calling the airlift “the beginning of a massive operation of humanitarian support for the populations of liberated territories.”

Across the region, the tumult that has been threatening one autocratic government after another since the turn of the year continued unabated. In Yemen, protests drove President Ali Abdullah Saleh to make a bid for a unity government, but the political opposition rapidly refused. An opposition leader, Mohamed al-Sabry, said in a statement that the president’s proposal was a “desperate attempt” to counter major protests planned for Tuesday.

In Bahrain, protesters blocked access to Parliament, according to news agencies. In Oman, whose first major protests were reported over the weekend, demonstrations turned violent in the port city of Sohar, and spread for the first time to the capital, Muscat.

Third Night of Protests in Oman

Bloomberg reports Youth Protests Enter Third Night as Sultan Promises to Create Jobs

Hundreds of Omani protesters gathered in the city of Sohar for a third night, demanding that the government open talks on their demands for more jobs, higher pay and more representative political institutions.

Khaled Maqbuli, a leader of the protest, called on the demonstrators at a roundabout in the center of Sohar, north of the capital, Muscat, to stay peaceful and avoid confrontation with the army and the police. Two people were killed, several wounded and a supermarket set on fire over the past two days.

“We are peaceful, we have demands, we are not saboteurs,” Maqbuli, 26, said through a loudspeaker. “We want the government to send civilian people to discuss our demands; we have nothing to say to the military.”

Sultan Qaboos Bin Said, the country’s ruler since 1970, “has received the demands of the citizens in all the provinces and is giving them his attention,” state television reported.

If governments could easily create jobs they would. Look no further than the US for proof. Only private enterprise can create jobs, at least lasting ones.

Governments can only take wealth from one place and distribute it elsewhere, by taxation, by force, or by the hidden tax of inflation that comes from printing money. When the stimulus ends, so do the jobs, except the bureaucratic ones, where massive pension problems and needless bureaucrats remain.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

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acura mdx

The Acura MDX was designed to suit the requirements of a large traveling



Acura MDX



2008 Acura MDX Overview



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Acura mdx



2011 Acura MDX | Photos, Specs, Accessories | Acura



Stock 2007 Acura MDX 1/4 mile Drag Racing trap speed 0-60



2008 Acura MDX Review – Putting the Sport Back in Sport Utility Vehicle



2011 RL Acura Wallpaper TL 2011 Acura TSX Specs 2011 Acura MDX



In 2007, Acura introduced the second generation of its highly regarded MDX.



Acura MDX - 2010 Acura MDX, Acura MDX Accessories, 2011 Acura MDX,



2008 Acura MDX. An optional Active Damper System, developed exclusively



2009 Acura MDX: Delivers maximum power and efficiency from its VTEC® V-6



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Acura mdx



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seven passengers, and the MDX features Acura's real-time traffic nav.



You can vote for this Acura MDX Sport to be the featured car of the month on



2009 acura mdx photos



2010 Acura MDX Pictures » 2010 acura mdx pics

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marka, modelis

Airplanes and Rockets - Marks Models Windfree kit



Airplanes and Rockets - Marks Models Windward Kit Plans & Parts



339, Marks Models. 309/1, O' Conner's Optician. 309/2, Star Stationary



Mark's Model Railservices. "Custom Made Products For Model Railroaders"



Marks took his first photograph of a 'naked as nature intended' model,



Mark "Wheels" Wheeler "So many models, So little time!"



Mark "Wheels" Wheeler "So many models, So little time!"



Marks Models Pt 5. SS Mg42 Gunner More from Mark in 1/16th scale.



Marks Models



Models with Stretch Marks, backstage at Michael Kors Spring 2008



Marks



Wingspan = 99.25". Airplanes



with the Makin Marks Models



KNUCKLEZ W/ MAKIN MARKS MODELS



model Mark Wahlberg is british model and lives in Dorchester, United Kingdom



As with many of Mark's models,



Mark "Wheels" Wheeler "So many models, So little time!"



Marks Models Pt 5. SS Mg42 Gunner More from Mark in 1/16th scale.



Mark got in contact with me at the start of the week regarding a model I



Heather Marks Models Heather Marks and Linda Vojtova attend the "Love Linda

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mini anden

Mini Anden - Pictures 5



Mini Anden's Beauty Tip of the Day



Comparativas Mini Anden



Mini Anden. Mini Anden - Entourage Third Season Premiere. Mini Anden Photo



Mini Anden Actress Mini Anden arrives at the premiere of Touchstone



Mini Anden - CQ USA & CQ UK 593 x 390 - 79k - jpg



Mini-Anden at 2007 Victoria's Secret Fashion Show



Mini Anden at Elite +



Mini Anden's natural hair is probably a light brown and full of natural red



Mini Anden is gorge. Labels: Models



Mini Anden 300 X 400 - 44k - jpg



Mini Anden



Mini Anden Pics



Mini Anden Pics



Send this picture to a friend · Go to the Gallery of Mini Anden



Celebrity Short Hair Styles - Mini Anden



(U.S. TABLOIDS AND HOLLYWOOD REPORTER OUT) Actor Mini Anden attends the



Mini Anden



mini anden arena magazine 2009 msp21 150x150 Model of the Week: April 24th



Mini Anden Pictures

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