Posted on 03/09/2009 8:52:55 PM PDT by TigerLikesRooster
Fresh pessimism sweeps over credit sector
By Michael Mackenzie and Aline van Duyn in New York
Published: March 9 2009 19:46 | Last updated: March 9 2009 19:46
Credit market indicators – barometers of stress since the financial crisis began 18 months ago – are once more flashing red.
Heightened concern over the fate of US carmakers and worries about escalating losses at banks and financial institutions and at General Electric, the largest debt issuer in capital markets, are creating a grim mood.
(Excerpt) Read more at ft.com ...
Ping!
I just posted about Europe giving Obama a — 100-day ultimatum — to come under the authority of a world-system of governance, starting with the fiancial system — *or else*.
The “or else” part would be (apparently) the stopping of purchases of our debt instruments that the government needs to sell in order to keep paying for things. Europe will apparently drop buying the government’s sales of debt — and thus, the *bottom will drop out* of our financial system *overnight*.
It will be a bigger crash than anything we’ve seen to date.
So, it’s blackmail — to the U.S. to come under the jurisdiction that they set up over in Europe...
The stuff I posted is at...
http://www.freerepublic.com/focus/f-news/2203045/posts
Oh, good. I was getting tired of the stale pessimism. ;)
a recession of this expected length might also be called a depression.
Some sort of CDS index has been rising reflecting confidence going down in the so called “credit sector”
But there is yet another option, which Obama just might consider (FDR would have done it in a heartbeat, I think): Defaulting on the debt. When you owe $100,000, you have a problem. When you owe $10 Trillion, your creditors have a problem. But Obama is more likely to just cave. We'll see.
Since we lose the advantage of having the USD as the world's reserve currency either way, we might be better off just defaulting. That's our ace in the hole.
What percent of US debt do the Europeans buy?
You asked — “What percent of US debt do the Europeans buy?”
That guy on the radio interview may have given it, I either didn’t hear it or don’t remember. He might also have information on his website, or, he may respond to such a question, via e-mail if one were to ask him. He’s one that I’m sure would know that, almost off the top of his head, since he’s been lecturing about it for over a decade or so... :-)
Another poster thought the Asians bought the lion’s share of U.S. debt, but I was wondering if the Europeans are doing this “in conert” with the Asians, too — as a way to get the U.S. under the jurisdiction of a world-system that they set up which the U.S. cannot control. I suspect as much...
Our system will also collapse if the USD loses its status as the world’s reserve currency. That’s what the Europeans are demanding.
Thanks. I am researching this topic and any information is helpful.
You said — “Our system will also collapse if the USD loses its status as the world’s reserve currency. That’s what the Europeans are demanding.”
Yep, they want to take the U.S. out of any “control” that it might have, and thus put the U.S. under the control of other world bodies or entities and certainly under the control of Europe...
The EU has no room to demand anything. If they sabotage the US Dollar, they slaughter themselves. It’s as simple as that. This is our ONE chance to come out ahead. The world, without the US, would suffer immeasurably. But, don’t think for one second that they are going to give US another pass. This is a one time deal, so that at least one country is left to pull it all togther again.
Ahhh..., good pie chart. Thanks for the info...
You are welcome.
You can find almost anything on google. All I did was click on “images” on google and type in treasury foreign investment or some such thing.
Research is just so much easier today than before the advent of the internet. You can fall into a big black hole but more often than not, you can find what you are looking for.
More likely, our friends will start demanding higher interest rates to buy any more of these instruments. Interest rates will rise, like in the 1970s and the economy will flatten or stay flat as businesses cut borrowing or, worse, pass the costs on to consumers, stoking inflation (or, stagflation).,p> In any event, we are the largest debtor nation in history and, as the UN guy said this week, Potential "deadbeat" nation... Thanks, Geithner! You and your brilliant buddies have just about destroyed our country. Glad you're in charge! NOT!!!
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