Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This is not accurate, most of the deficit is being paid domestically. China and a number of nations have actually reduced the number of treasuries, etc they purchase.
The US savings rate is increasing and people are paying off debt, but left to itself this would further depression the economy and make it even harder for people to save/pay off debt. The solution is to force people to spend, you can do that with government deficit spending.
How is the debt being paid off domestically? By Americans investing in Treasuries, or by the FED buying T-bonds and -bills?
How is the debt being paid off domestically? By Americans investing in Treasuries, or by the FED buying T-bonds and -bills?
By Americans purchasing treasuries, which makes perfect sense as the national savings rate went from almost zero to around 5~6% in 2 years and is still increasing.
By Americans purchasing treasuries, which makes perfect sense as the national savings rate went from almost zero to around 5~6% in 2 years and is still increasing.
It's mostly under the mattress or in hard currency. The savings rate is figured on lowered spending, they really don't know how much people are saving.
It's mostly under the mattress or in hard currency. The savings rate is figured on lowered spending, they really don't know how much people are saving.
That is the key, it is reduced spending not actual savings in a bank or Treasuries. What fool would want to lock their money in for a year or more in a T-bill and get those pittance interest rates instead of buying gold or silver and burying it in the house or yard.
It's mostly under the mattress or in hard currency. The savings rate is figured on lowered spending, they really don't know how much people are saving.
No its not, Americans are buying treasuries. And you can most certainly figure the national savings rate, of course the number is going to be "rough" but you can measure it.
No its not, Americans are buying treasuries. And you can most certainly figure the national savings rate, of course the number is going to be "rough" but you can measure it.
Chinese, Saudi's and the Fed are buying treasuries....the sheeple are hiding their assets, if they have any left.
I'll give you this, you can guesstimate the savings rate.... within maybe 20% accuracy.
Chinese, Saudi's and the Fed are buying treasuries....the sheeple are hiding their assets, if they have any left.
I'll give you this, you can guesstimate the savings rate.... within maybe 20% accuracy.
Sorry, but the deficit has largely been funded by domestic demand for treasuries not foreign.
Funny, that you think you can't calculate the savings rate, yet you think you can determine (I guess from your rear) what people are doing with their assets.
That is the key, it is reduced spending not actual savings in a bank or Treasuries. What fool would want to lock their money in for a year or more in a T-bill and get those pittance interest rates instead of buying gold or silver and burying it in the house or yard.
How about people and/or institutional investors who got out of a plummeting stock market?
Basically, the market for U.S. Treasuries is more dependent upon U.S. buyers right now, including the Fed, than upon the Chinese or Japanese. The foreigners are still buying, but their rate of buying has not kept pace with the rate of issuance.
"China held $801.5 billion in Treasury debt at the end of May. The Fed at that time held about $598 billion, although that has now risen to $704 billion. The latest figures for U.S. households, from the first quarter, showed holdings of $643.9 billion - more than double the $266.6 billion in the fourth quarter of 2008."
The analysis points out that a shell game is being played by the FED in that they buy agency debt back from foreign central banks so that those banks can buy Treasuries, which makes the Treasuries look like they are in continual demand. This game is being played to maintain investor interest in U.S. Treasuries and in trying to stabilise the US$.
Of course, it is to China's and Japan's interests to keep the value of the US$ high, relative to the Yuan and the Yen, but of course we can see that it will continue to fall in relation to real assets (gold, silver, wheat, coal).
Going to the research source of the above-posted link, we can see that there is negative demand for U.S. debt this year (2009) and our FED is trying to make the demand appear to be positive.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
