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Worries Rise on the Size of U.S. Debt The nation’s debt clock is ticking faster than ever — and Wall Street is getting worried. As the Obama administration racks up an unprecedented spending bill for bank bailouts, Detroit rescues, health care overhauls and stimulus plans, the bond market is starting to push up the cost of trillions of dollars in borrowing for the government. Last week, the yield on 10-year Treasury notes rose to its highest level since November, briefly touching 3.17 percent, a sign that investors are demanding larger returns on the masses of United States debt being issued to finance an economic recovery. That is why the Federal Reserve announced an extraordinary policy this year to buy back existing long-term debt — $300 billion over six months — to drive down yields. The strategy worked for a while, but now the impact of that decision appears to be wearing off as long-term interest rates tickup again. To calm nerves and fill the deficit hole, the government is getting creative. The Treasury is ramping up its auction calendar, holding more frequent sales of government debt and selling the debt in expanded amounts. It is now holding sales of its 30-year bond each month, up from four times annually. It is also resuscitating previously discontinued bonds, such as the seven-year note and the three-year note, to try to mop up any available money all along the yield curve. There is even talk of issuing billions of dollars of a new 50-year bond, though the idea has not won official approval. |
Ayoye… croyez moi j’en ai vu des personnes et des entreprises en difficulté financière depuis que je suis sur le marché du travail.
Le gouvernement américain est sur le même sentier que ces entreprises. Heureusement pour lui par contre, il peut augmenter ses recettes à volonté. Vraiment à volonté?
J’aurais pas souhaité ça, mais ça m’apparait clair que les gros problèmes s’en viennent avant longtemps et cette fois-ci ça va être difficile d’imputer la faute au capitalisme.
Ce sera intéressant de voir jusqu’où l’imagination du gouvernement américain va aller pour pelleter ces problèmes en avant.
We’re in for a bumpy ride !The end of the world is near.How much is a ticket to the moon?
GDP world – $ 55 trillion
-GDP USA – $ 13.7 trillion
-Taxes coll. US – $ 3.7 trillion
– Gov expenses – $ 4.2 trillion
– Deficit annual ( for the last few years….) ~$500 billion
– Debt (sept 08) $ 10.3 trillion (accumulated till sep 08)
– Chinese ‘held’ debt – $ 1.2 trillion (only)
– Other countries – $ 3.1 trillion
– FED ‘holds’ debt – $ 6.4 trillion – – This is ‘held ‘ in Bonds that were never sold – i.e. thin air…
Since sept 08, we have added:
– TARP – $ 0.7 trillion
– Univ Med – $ 0.48 trillion
– Stimulus – $ 0.7 trillion (good name for a roman emperor !)
– For Banks – $ 1.0 trillion
– Adding to another – $ 3.0 trillion , also made up from fresh air.
– So now the DEBT sits at about $ 13 trillion – $ 13E12 on my calculator
Add to this:
Government takeover of businesses.
Support to unionization – ‘card check’ legislation.
The amazing invitation to wholesale fraud that all these ‘impossible-to-control-or-manage’ moneys create.
Cap & Trade.
Green technologies subsidies.
Credit card defaults, as the unemployment grows – the Debt in Credit Cards is of the order of $ 12 trillion.
The mortgage defaults – the CRA promoted mortgages and ‘NINJA’ loans of the order of $ 1.7 trillion.
The ‘promised’ Social Security support for the boomers, most of which have already lost 40 % of their retirement investments – another $ 20 trillion…
je mettrais pas ma main au feu que ça va passer…
FInalement, le Messie n’est que le prolongement de son prédécesseur en ce qui concerne la mauvaise gestion de fonds publics. Les gens vont, je l’espère, s’en souvenir en 2010!
Martial law will be in effect by 2010.
Garvey :
LOL! Obama’s future emperor name?
Don’t wanna sound like those survivalist nuts but when we look at the whole scope, the mid-term future’s either a huge social meltdown or a big socialist takeover.
Store as much gold as you can pal! Gazoline, weapons and non-perishable food could be good future investments as well.