World's 5th biggest pension fund stops buying U.S. Treasury bonds

the global economic collapse continues, led by the rapid disappearance of confidence in the dollar...

South Korea's National Pension Service (NPS), the world's fifth-biggest pension fund, said on Thursday it was shying away from U.S. Treasuries because of falling yields and the weakening dollar.

The move by the NPS could signal a big shift by financial institutions away from U.S. government debt into higher-yielding assets, the Financial Times said.

The fund, which expects its assets to rise to 250 trillion won ($253 billion) by the end of 2008, holds about 17.4 trillion won worth of foreign bonds of which U.S. Treasuries account for 94 percent.

Those figures would suggest NPS holds about 16.4 trillion ($16.6 billion) won in U.S. Treasuries.

"We sees the attractiveness of U.S. Treasuries falling," NPS spokeswoman, Chi Younghye, said.

it may not be front-page news, but unlike other stories that don't get the coverage they deserve, this one is creating a hole of such staggering proportions that, when we finally fall in, the world as we know it will cease to exist...

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