But that's not stopping you from buying all the US Treasury securities you can get your hands on.
You could buy yen, you could buy gold, you could buy euros; but you're not.
I read somewhere recently that the amount of goods we are presently buying from China isn't enough for them to continue to buy our treasuries in the quantity that we require. (They don't have the money anymore)
A catch-22?
Sure, China, porkulus is inflationary.
But that’s not stopping you from buying all the US Treasury securities you can get your hands on.
You could buy yen, you could buy gold, you could buy euros; but you’re not.
"The government is expected to offer $2.5 trillion in bonds this year to cover shortfalls. They aren't going to be able raise that much, much less whatever it takes on top of TARP 1.
I don't know if it will be one month or 6 months, but the FED will be stepping in to buy treasuries. China and Japan's exports are collapsing. Not enough dollars to come back and fund our debt. We will either print money to fund our deficit, thru the FED, or we'll just put a halt to the stimulus and deficit spending. We're in deep s***.
The primary brokers of Treasury debt are already experiencing a supply overhang and we're just getting started. They won't be able to get rid of it within months. Go to bloomberg and do a search for "supply overhang". We're looking at weekly auctions of $50 billion +.
"Economists expect reports this week to quash any lingering hope that the economy might be approaching a bottom." - From front page of Marketwatch.
Economically speaking, this is unlike anything the world has ever seen."
They have their eye on California as a pleasant place to relocate their surplus population once they foreclose on us.
Let us know when China gets its inflation rate down to single figures before we put too much credit in its economic prescriptions.
It is worried about dollar depreciation because it becomes less competitive with US exports when that happens.