Posted on 09/20/2011 11:18:41 AM PDT by library user
Must be the same greedy Joooooooos that Waxman complained about voting for Turner over Weprin in NY-9 last week.
George Soros will come to our rescue/s
The U.S.A. seems to be intent on squandering world reserve currency status — so, sadly, I’d have to say “Yes”. (Reserve currency status is something that has to be earned — with the right leadership, you could turn this around.)
Hey, if they drop far enough we can buy back our own debt for pennies on the dollar. Sounds like a plan.
They sell with their right hand and buy with their left hand.
Why is the Treasury able to sell them at low interest rates?
This was supposed to be the rock solid investment that just barely beats the inflation. However it's no longer fulfilling this role, and that's one of many reasons why investing into T-bills is unwise today. In essence you are going to lose money on that deal. Right now if you lend a $1,000 to the USA for a year you will be paid interest of $1. The official inflation meanwhile will cost you $16.30 over the same year. What kind of an investor you have to be to fund Comrade Obama's money giveaways?
Who are the buyers now?
Hard to tell - the Federal Reserve most likely. Some time ago I sold all the T-bills that I had and moved the money into something else.
Look guys, it's the total debt level that counts . . not "who owns it." It's not like a line of credit, where the bank can call it on you. We know the length of our debt -- we know that we have to manage it.
We could be selling all the bonds to Canada and your uncle joe -- and they could turn right around and sell to the chinese, so "We would be in hock to the chinese." And if the Chinese "dump" bonds -- meaning someone else buys them from the Chinese -- say Canada or your uncle joe -- are we lots better off??
What counts is the total level -- don't waste time bloviating -- pro or con -- on who owns them.
Actually, that is what is happening.
That is true, but only as long as all the buyers of bonds are real lenders who give us real dollars. All foreign lenders are such because they can't print dollars (well, except NK, perhaps.) The story is different when new dollars are created out of thin air to pay for those bonds.
Significant levels of divestment of important players on the market lead to reduction of foreign sales of US bonds. This leads to haing the Federal Reserve buy those bonds with brand new dollars. This becomes a positive feedback loop because the more Fed prints the cheaper the USD becomes - and then holding it (or T-bills that are denominated in USD) becomes untenable. In the end the USA won't be able to find a lender, and inflation will be the only financing engine of the government. That's the Zimbabwe way.
If they sold it someone bought it. Not a big deal to me.
Not a big deal? You don't care that your dollars now purchase 90% of what March, 2011 dollars did?
Sure, if we pay with copper pennies, nickel nickels, and silver dimes, quarters, halves, and dollars. Or maybe gold double eagles, eagles, half and quarter eagles.
“Are we screwed???”
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Only if Bears still do it in the woods, the Pope is still Catholic, Bill Clinton still lies, a pig’s rump is still pork, Barney Frank is still...well you know.
In the next 4 years the fed has to refinance 10 Trillion of the dept plus any deficits between now and then.
When it comes to money, the Jews rarely ever go wrong.
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