Another Cute/Terrible One <iframe width="640" height="360" src="https://www.youtube.com/embed/YYN-Awrq3og?feature=player_embedded" frameborder="0" allowfullscreen></iframe>
The Union Problem <object style="height: 390px; width: 640px"><param name="movie" value="https://www.youtube.com/v/S844k_GigaQ?version=3&feature=player_embedded"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><embed src="https://www.youtube.com/v/S844k_GigaQ?version=3&feature=player_embedded" type="application/x-shockwave-flash" allowfullscreen="true" allowScriptAccess="always" width="640" height="360"></object>
Drive on, Yannis, drive on!!! After this diatribe, we won't see you for another three years after November
WSJ: Fed Buying 61 Percent of US Debt Wednesday, 28 Mar 2012 11:08 AM By Julie Crawshaw and Forrest Jones "Last year the Fed purchased a stunning 61 percent of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis," Goodman writes. Goodman also warns that U.S. economy and markets are âat risk for a sharp correctionâ if conditions arenât ânormalized.â "This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits." The U.S. government is growing increasingly more dependent on borrowing to finance itself, with net issuance of Treasury securities hitting 8.6 percent of gross domestic product (GDP) on average per annum, more than double levels before the crisis. Fed intervention in the government debt market makes demand for Treasury bonds appear higher than it really is, as foreign creditors and other investors have fled U.S. government debt instruments and are looking elsewhere until the government makes serious attempts to curb spending and narrow its gaping deficits. Goodman notes that foreign investors like Japan and China that once scooped up U.S. debt are shunning it. In 2009, such foreign purchases of U.S. debt amounted to 6 percent of GDP and has since falled by over eighty percent to a paltry 0.9 percent. Without foreign buyers and a shrinking base of U.S. corporate and bank buyers, the Treasury has had to resort to the Federal Reserve itself to make the purchases. The Fed purchasing not only makes up the shortfall, but can keep long term interest rates artificially low. "The Fed is in effect subsidizing U.S. government spending and borrowing via expansion of its balance sheet and massive purchases of Treasury bonds. This keeps Treasury interest rates abnormally low, camouflaging the true size of the budget deficit," Goodman writes. "Similarly, the Fed is providing preferential credit to the U.S. government and covering a rapidly widening gap between Treasury's need to borrow and a more limited willingness among market participants to supply Treasury with credit." Political bickering on both sides of the aisle has prevented politicians from cutting spending and undertaking fiscal reform. Arguing over the role of tax hikes versus spending cuts hit a fever pitch in 2011, when both sides in Congress waited until the last minute to agree to terms surrounding lifting the government's debt ceiling. Should fiscal bickering return, expect investors in U.S. debt who are not employed at the Federal Reserve to take note, other experts say. "If people dig in, the polarization will get worse, and that could be the worst outcome for markets," says Eric Stein, vice president and portfolio manager at Eaton Vance in Boston, according to Reuters.
To clarify the post above, this is not good... They are printing gobs of money, monetizing the debt, and hiding their disastrous actions... When the dollar collapses and inflation catches up, destroying regular folks' pensions and nest eggs, they will all have different jobs... It will then be time for the big OOPS!
this is the true story of big govt derangement syndrome. Right or left they are watching the govt debase our dollars. All you have to do is see how much going out to lunch costs now vs. say 4 years ago.
Path To Prosperity by Paul Ryan Dear Friend -- Today, I'm leading the debate for the Fiscal Year 2013 budget, the Path to Prosperity, on the floor of the House of Representatives. The House is also debating President Obamaâs budget. So it seems like the perfect time to compare the two plans and highlight the choice of two futures, or #2futures as we say on Twitter. Obamaâs budget has a net spending increase of $1.5 trillion. The Path to Prosperity cuts $5 trillion in spending. Obamaâs budget increases taxes by $1.9 trillion and further complicates our broken tax code. The Path to Prosperity prevents the Presidentâs tax hikes and reforms the tax code to make it simple, fair and competitive. Obamaâs budget never balances the budget and adds $11 trillion in debt over the next decade. The Path to Prosperity reduces deficits to 3 percent of GDP and charts a path to pay off the debt. Obamaâs budget cuts defense by nearly $500 billion and fails to address the sequester. The Path to Prosperity avoids deep and indiscriminate cuts to defense and prioritizes savings. Obamaâs budget moves full steam ahead with the health care law, allows unaccountable bureaucrats to ration care and fails to save Medicare from bankruptcy. The Path to Prosperity repeals the health care law, puts health decisions in the hands of patients and doctors and preserves the Medicare guarantee for future generations. Compare the two plans and itâs not difficult to figure out who is proposing serious solutions to prevent this oncoming debt crisis. Americans deserves the choice of two futures. Sincerely, Congressman Paul Ryan