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Debt is going to be offered at such a high discount and yield that I think it'll finally push us into fiscal austerity when we're barely able to raise funds. If no one is there to buy the debt, there can be no spending.
Debt is going to be offered at such a high discount and yield that I think it'll finally push us into fiscal austerity when we're barely able to raise funds. If no one is there to buy the debt, there can be no spending.
no.. US Government has the best credit rating in the world.. The interest rates they have been receiving is actually going down.. not up... (which actually means that if they werent going down, the deficits would be even higher)
no.. US Government has the best credit rating in the world.. The interest rates they have been receiving is actually going down.. not up... (which actually means that if they werent going down, the deficits would be even higher)
The interest rates are going down because the Federal Reserve is buying all the debt, it's called a Ponzi scheme.
Debt is going to be offered at such a high discount and yield that I think it'll finally push us into fiscal austerity when we're barely able to raise funds. If no one is there to buy the debt, there can be no spending.
Actually, our only way out of this spending orgy mess is default on our bonds. Neither party, particularly the dems, have the political will to cut spending in a meaningful fashion. As such, they have secured our financial doom, it is only a matter of time, as this cannot go on forever.
Options-
1. default of bonds
2. hyper inflation
3. currency devaluation
The latter two essentially reduce the wealth of nearly all US citizens to nothing. The first option only affects bond holders (both individuals and nations) and results in insured fiscal responsibility, as the government will only be able to spend what they secure through tax revenues (our bonds will be worthless).
no.. US Government has the best credit rating in the world.. The interest rates they have been receiving is actually going down.. not up... (which actually means that if they werent going down, the deficits would be even higher)
Is this the same credit agencies that were slapping AAA ratings on a pile of s*** aka mortgage backed securities? If it is should we be impressed ?
Was wondering if you saw this :
Quote:
Pimco's Total Return Fund, the world's biggest bond fund, has dumped all U.S. government-related securities, including U.S. Treasurys and agency debt.The move was not a surprise given Pimco chief Bill Gross's recent statements that Treasurys are over-valued.
In January, Pacific Investment Management's $236.9 billion Total Return fund slashed its U.S. government-related debt holdings to the lowest level in at least two years and increased cash and debt holdings from other developed nations.
"It just gives people that follow him the bias not to bullish on the Treasury market," said Jefferies Treasury Strategist John Spinello. "He thinks rates are going higher."
no.. US Government has the best credit rating in the world.. The interest rates they have been receiving is actually going down.. not up... (which actually means that if they werent going down, the deficits would be even higher)
And it's a totally bogus rating. Geeze...subprime mortgages were rated AAA by the same folks saying the US has a stellar credit rating.
If the US were to apply for a cc or mortgage they'd be refused due to their debt to income ratio.
It's all a game on paper. Even Greece, the worst of the nations, only got lowered last week and still not at "junk" level.
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