Street Talk Who is Going to Buy U.S. Debt? Thursday, July 16, 2009 8:59 AM By: Julie Crawshaw http://moneynews.newsmax.com/streettalk/federal_debt/2009/07/16/236312.html In fiscal 2009, the U.S. government must find buyers for $2.041 trillion in new debt, three times as much debt as it issued last year. Given the current state of the economy, it seems frighteningly apparent that a threefold increase in debt purchases by foreign buyers, mutual and pension funds and other usual investors is mathematically impossible. âThere is simply not enough money in the present economy to support a tripling bond issue in the normal course of business,â Sprott Asset Management head Eric Sprott wrote in a newsletter to clients. âAs the lender of last resort, the only purchaser left is the Federal Reserve.â In 2008, the Fed was a net seller of almost $300 billion of bonds, but in the first half of this fiscal year itâs buying almost $280 billion of bonds under a policy of âquantitative easing.â That means the Fed purchases assets, including Treasury and corporate bonds, using newly created money. âThe Federal Reserveâs âsolutionâ to the debt problem is the problem,â Sprott said. âIt has resulted in the Federal Reserve doubling the monetary base of the United States over the span of a mere nine months. âThe future solvency of the United States as a nation state is currently in jeopardy. It is in far deeper trouble than the mainstream press cares to admit,â he said. Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget, said the White House and Congress should negotiate a broad plan to reduce deficits now. "Most anybody who's being honest knows we've reached a point where we've got a very dangerous fiscal situation, and it won't fix itself," MacGuineas told The Wall Street Journal. © 2009 Newsmax. All rights reserved.
Federal sales tax will raise enough to pay the debt. Also retirement visas for foreigners would solve the housing problem.
Maybe they can have the Marines pay a few foreign nations a visit to kindly ask them to buy more debt
Or maybe we can bring all the Marines and other military home and (1) save $1 TRILLION in expenses, and (2) give up our Imperialistic delusions. We can't afford to SOCIALIZE THE CRAP OUT OF AMERICA. WE CAN "DOUBLY NOT AFFORD" TO SOCIALIZE AMERICA AND CONTINUE TO BE POLICEMAN TO THE WORLD. America does NOT "owe it to everybody who wants democracy to fight for it on their behalf and pay for it with Amrican lives and out of US taxpayers pockets"...
................................................................................. 1000% Correct.... America needs to go on military and industrial sebatical.... During this period it can totally remake itself.... Why ? It has to .... ............................................................................... This is correct math.... And the only way to rekindle America..... .................................................................................... You know the next drill.... Eliminate the IRS 10% State C tax....5% Fed Tax by state mandates, no other taxes Reburbish the securities highway Remove legal largesse Reinvent wealth distribution Compete head on with BRIC production costs OR Guaranteed 30% unemployment Further US decline Socialism at its finest.....F'n mediocrity And no...THIS IS NOT A DRILL..... WTF IS THE US WAITING ON ? THE TOOTH FAIRY ?
Pulling back the guns and getting out of war is certainly the best way to save money that's being flushed down the toilet... but I don't think that's possible at this point. The war in Mexico is just starting to escalate (and that one's pretty close to the US... it could easily spark across the border... specially if Sam is broke...) On top of that you have the Bush wars that keep on draining resources and the new bullies (Chavez and Kim Yong Il) who just want to take a shot at the US... My remark was meant rather to express sarcasm and laugh at the futility of trying to solve certain kind of issues through the way of the arms...
Ahum..... Biden pledges support for Georgia The US will support Georgia as the former Soviet republic seeks to broaden its democratic credentials, US Vice-President Joe Biden has said. He told the BBC the US backed the territorial integrity of Georgia, following its 2008 war with Russia. http://news.bbc.co.uk/2/hi/europe/8163876.stm These changes be it unavoidable will only take place when they are indeed unavoidable. Wasnt the US already only paying but the interest on it's debt before this crisis began? Then they doubled it? Tripled it? Who even knows anymore. Same with the dollar. Volcker said 2 years ago it's not hard to imagine a $ crisis occuring as it was happening right then and there. Today the $ is at the same level and labeled strong by many. Governments and central banks like to give their own meaning to the term unsustainable.
None of those are a threat to our borders or sovereignty. Just take care of them, if necessary. Seriously... do you think anyone is foolish enough to do a significant attack on the USA? Would be suicide and they know it. All we NEED to do is defend our borders. And that doesn't necessitate fighting other countries' battles nor having troops in 130 countries around the world.
................................................................................... And even the Iraq oil play is in question.... See the robust first oil auction ? From the friendly part of the Iraq govt. ? $1 per barrel ? One player.... Look....this move alone ....the military retraction crashes oil.... The valuations alone on a refurbished exchange will make the previous top numbers look like chump change.... ................................................................................ Hey it was/is the Harvard Ilk that got the US in this mess.... But it will not be THEM getting the US out.... They do not have a clue..... Harvard cannot even hold on to money gifted to them.... Hint hint .... Summers ring a bell ?