selling american bonds

[markabilly]

:( from the ap wire:




The recession, financial crisis and two wars have pushed the federal deficit above $1 trillion, a record level that makes the Treasury secretary's role as chief marketer of U.S. debt tougher than any of his recent predecessors'.
Geithner, who traveled last week to the Middle East and Europe, has to persuade foreign investors to keep buying Treasury bills, notes and bonds; they hold nearly half of the government's roughly $7 trillion in publicly traded debt.
"He's a smart guy, but it's a very, very big task," said Dean Baker, co-director of the Center for Economic and Policy Research, a left-leaning Washington think tank.
If foreign demand for U.S. debt sags, that could drive up interest rates and spell big trouble for an economy hobbled by 9.5 percent unemployment. Higher rates would make it more expensive for consumers to buy homes and cars, and for businesses to finance their operations.
In the worst-case scenario, a rush by foreigners to sell their U.S. debt could send the dollar crashing and inflation soaring. Because that would also hurt the value of their remaining holdings and the U.S. economy – a key market for their exports – private analysts believe such a scenario is not likely to occur.
With the risks in mind, Geithner last week visited Saudi Arabia and the United Arab Emirates, whose vast oil wealth gets recycled into Treasury holdings. Last month, he visited China, the largest foreign holder of U.S. Treasuries. That trip was marked by an extra dose of drama. In March, Chinese Premier Wen Jiabao said his country was concerned about the "safety" of the large amounts of money it had lent to the United States.


so where is money to come from for next year's stimulus that will clearly be necessary...... :confused:

[janvanvurpa]

You clearly don't understand how all of this works. First, you spend huge amounts of money you don't have on all kinds of feel good and politically popular programs. All in the name of bettering everyone's lives of course.

Then when they are all up and running, and the government is completely out of money and can't borrow more, is when you implement huge tax increases. You do it like this because, if you tried to get the money to pay for all that stuff first, you would never get any of it passed. Now you can raise taxes as much as you want in the name of saving the country from financial disaster. Conveniently forgetting that you created the disaster in the first place.

You reading the same news as I have been for the previous
8 to 20 years?

You convince a bunch of yokels to vote for you based on hate and fear, then strip most of the enforcement powers over huge sectors of the economy
on some delusional and childishly ignorant idea the some mysterious force called "The Marketplace" will govern the behaviour of the Army of the Under-deprived who control banking, investments, speculation etc.
(S&L collapse thru the decline in MFGing to the Investment crisis to the near total collapse of the US Banking system, the crisis peaking in fall 08----under WHO?

You couple that with wasting FOR WHATEVER REASONS---nobody knows since the stated goal changed at least 5 times---500-700 BILLION dollars
blowing up piles of rocks and sand for no good reason------under WHO?

AND since your ideology restricts thought, wait far too long to begin ineffectual remediation of the blunders wrought, and watch BILLIONS, probably TRILLIONS of dollars of "value' of investments, pensions, real estate
evaporate---blinking like the fool he was---under WHO.


And you, Starter, imply some little programs benefitting a few people is going to ruin the country.

I wonder where this constant repetition of "Blame the little guy" comes from?
I wonder...............

[chuck34]

You reading the same news as I have been for the previous
8 to 20 years?

You convince a bunch of yokels to vote for you based on hate and fear, then strip most of the enforcement powers over huge sectors of the economy
on some delusional and childishly ignorant idea the some mysterious force called "The Marketplace" will govern the behaviour of the Army of the Under-deprived who control banking, investments, speculation etc.
(S&L collapse thru the decline in MFGing to the Investment crisis to the near total collapse of the US Banking system, the crisis peaking in fall 08----under WHO?

You couple that with wasting FOR WHATEVER REASONS---nobody knows since the stated goal changed at least 5 times---500-700 BILLION dollars
blowing up piles of rocks and sand for no good reason------under WHO?

AND since your ideology restricts thought, wait far too long to begin ineffectual remediation of the blunders wrought, and watch BILLIONS, probably TRILLIONS of dollars of "value' of investments, pensions, real estate
evaporate---blinking like the fool he was---under WHO.


And you, Starter, imply some little programs benefitting a few people is going to ruin the country.

I wonder where this constant repetition of "Blame the little guy" comes from?
I wonder...............

Wow that didn't take long, the blame Bush crowd is here.

How about stopping with the blame and get something done?

The OP was about how foreign nations don't want to buy our debt any more.

The debt has doubled and the deficit has quadrupled --- Under WHO?

[GridGirl]

Campaigning in Europe and the Middle East is all fine and well but surely the Treasury Secretary should be more worried about what Russia and more importantly China are going to do? Europe for the moment is still backing the Dollar as the functional reserve currency. China is the only real economic powerhouse that is actively seeking towards moving to the International Monetary Fund and they hold over half of the worlds dollar reserves so in effect they hold all the aces in the pack right now.

[airshifter]

Wondering where you seem to have divined my ideology? I was addressing my comments to the current administration, not the previous one which screwed things up aplenty on their own watch and of whom I am NOT a fan.





Take no offense. Janvan reads into everything possible and blames it on the Bush or any other republican admin in the same bursts of personal attacks claimed to be unbiased.

You must have sounded like a possible "other than democrat", therefore he quickly decided you lack the ability to think for yourself. It's even more funny when you see it enough to realize that in his mind, such knee jerk reactions are the right thinking mind! :laugh:

[markabilly]

First, the big stimuli was supported big time by Bama**
Second, the big stimuli was supported big time by McCain
Third, the big stimuli was supported big time by Bush

Hence: Reason I voted for neither bama or MC cain was that neither has a clue about the current problems and the cause thereof. The people they rely on have different names but they all went to the same school and practice the same religion verbatim


**(and why do you think wall street supported him thro massive contributions? They knew he could be bought and kept easier than McCain, who has his own indepednat source of wealth)

Check my posts of October and November last year.

The current work situ is horrible........whine about people buying house they can not afford, well that is stupid, because when they had the job, they could afford them.

The key is and has always been jobs. Real jobs, productive jobs making stuff that people need, like cars, airplanes and so on.

But now we import everything. Our biggest export for many years, well it used to tobacco and farm products, but then it became jobs going overseas.......along with cash.

China does not really buy anything except very high tech products to help them make high tech products (when they are not just stealing them), and the cash flow is kept alive by their buying USA bonds, so they own half the government and a bunch of other real estate investments and so on.


For the last few years, the usa surived on financial sector jobs and high tech and such.

Now all those jobs are going real fast out the door to other countries.

the last few years have been the result of false prosperity w/o any real infrastructure support, fueled by investments from countries like china, india, saudi arabia, et al, in the capital markets

And in the absence of real productivity, the result will be need for another stimulus in 2010.......

and unlike earlier times, when a big stimulus occurred people bought goods made in the usa and put other americans back to work. Exclude the groceries and everything from cars, paper, plaastic, computers, televisions are made overseas.....and that is where it goes, and it does not return except as profit investment in bonds.....

so if nobody wants to buy our debt anymore, than what are they going to do with all those profits they are getting from USA>>>>>

[Tazio]

First, the big stimuli was supported big time by Bama**
Second, the big stimuli was supported big time by McCain
Third, the big stimuli was supported big time by Bush

Hence: Reason I voted for neither bama or MC cain was that neither has a clue about the current problems and the cause thereof. The people they rely on have different names but they all went to the same school and practice the same religion verbatim


**(and why do you think wall street supported him thro massive contributions? They knew he could be bought and kept easier than McCain, who has his own indepednat source of wealth)

Check my posts of October and November last year.

The current work situ is horrible........whine about people buying house they can not afford, well that is stupid, because when they had the job, they could afford them.

The key is and has always been jobs. Real jobs, productive jobs making stuff that people need, like cars, airplanes and so on.

But now we import everything. Our biggest export for many years, well it used to tobacco and farm products, but then it became jobs going overseas.......along with cash.

China does not really buy anything except very high tech products to help them make high tech products (when they are not just stealing them), and the cash flow is kept alive by their buying USA bonds, so they own half the government and a bunch of other real estate investments and so on.


For the last few years, the usa surived on financial sector jobs and high tech and such.

Now all those jobs are going real fast out the door to other countries.

the last few years have been the result of false prosperity w/o any real infrastructure support, fueled by investments from countries like china, india, saudi arabia, et al, in the capital markets

And in the absence of real productivity, the result will be need for another stimulus in 2010.......

and unlike earlier times, when a big stimulus occurred people bought goods made in the usa and put other americans back to work. Exclude the groceries and everything from cars, paper, plaastic, computers, televisions are made overseas.....and that is where it goes, and it does not return except as profit investment in bonds.....

so if nobody wants to buy our debt anymore, than what are they going to do with all those profits they are getting from USA>>>>>
Awesome post :up:
I'm going to sell my Aprilia, and buy a Harley. :uhoh:

[markabilly]

Awesome post :up:
I'm going to sell my Aprilia, and buy a Harley. :uhoh:
Spoke like a real american!!

all those working at Harley, thanks to your actions will have a job, so they can now run out and buy a bunch of basic necessities (like clothes for their children etc), brought in from the only countries that make it......places like china, korea, malaysia........I wonder how many of those Harley parts were actually made here....... :confused:

Funny how many of the stupid demos support letting everyone into the country, while repubes support it as welll
Why do u think?

[markabilly]

answer: both parties who do support it (some in both do not) preach it because it takes care of the poor the downtrodden etc and so forth.

Real reason for repubes is it provides cheap labor to keep wages down---but it is losing its appeal because now those jobs can be shipped to india, china for even less money

demes have yet to figure out why wages are so low, and how companies get away with the low pay.....

meanwhile porkbarrel pelosi, who is worth millions, flies her personal, US government bought and paid jet at the cost of millions for tax payers, and has a hubby worth millions (like 100 million or so in real estate and businesses)--if she flew first class on an airline even at 4k per seat**, it would save millions--but she is just one of the "little people" in DC


BTW-I know a guy from India who was an accountant at Ernst and Young,, his job went to India and they wanted him there at 0.5% of what they were paying him here
he could work as a busboy and in comparison, his wages in india as an accountant would about 4% compared to what he could make here, busing tables.......so guess which resturant he works at now?????

**American airlines in the 1999 used to sale a special one year "pass"for 100k. With it, you could fly all over the usa, at your pleasure, if there was one seat available on the plane when you booked, or you could just walk up to the gate and get on....

[Tazio]

demes have yet to figure out why wages are so low, and how companies get away with the low pay.....
When the banjo people, and born-agains realize that their "repube" vote is the equivalent to begging to be one of the "meek" that inherit the kingdom of heaven. (cause it sure ain't paying the Trailer Park lease) has actually helped create hell on earth it would be a good sign that some have IQ's over 11
I think they leave that out of the sermons at their mega-churches :confused:

[Tazio]

:rolleyes: :rolleyes: :rolleyes: :rolleyes:


kAyP52hh75U

[rah]

First, the big stimuli was supported big time by Bama**
Second, the big stimuli was supported big time by McCain
Third, the big stimuli was supported big time by Bush

Hence: Reason I voted for neither bama or MC cain was that neither has a clue about the current problems and the cause thereof. The people they rely on have different names but they all went to the same school and practice the same religion verbatim


**(and why do you think wall street supported him thro massive contributions? They knew he could be bought and kept easier than McCain, who has his own indepednat source of wealth)

Check my posts of October and November last year.

The current work situ is horrible........whine about people buying house they can not afford, well that is stupid, because when they had the job, they could afford them.

The key is and has always been jobs. Real jobs, productive jobs making stuff that people need, like cars, airplanes and so on.

But now we import everything. Our biggest export for many years, well it used to tobacco and farm products, but then it became jobs going overseas.......along with cash.

China does not really buy anything except very high tech products to help them make high tech products (when they are not just stealing them), and the cash flow is kept alive by their buying USA bonds, so they own half the government and a bunch of other real estate investments and so on.


For the last few years, the usa surived on financial sector jobs and high tech and such.

Now all those jobs are going real fast out the door to other countries.

the last few years have been the result of false prosperity w/o any real infrastructure support, fueled by investments from countries like china, india, saudi arabia, et al, in the capital markets

And in the absence of real productivity, the result will be need for another stimulus in 2010.......

and unlike earlier times, when a big stimulus occurred people bought goods made in the usa and put other americans back to work. Exclude the groceries and everything from cars, paper, plaastic, computers, televisions are made overseas.....and that is where it goes, and it does not return except as profit investment in bonds.....

so if nobody wants to buy our debt anymore, than what are they going to do with all those profits they are getting from USA>>>>>

Yeah I know what you are saying and I agree with much of it suprisingly enough. But I think the economic & manufacturing landscape in the USA needs to change. I guess I see it as a heaps freakin bigger version of Australia. I think there is something wrong with the core of our societies in that everyone wants everything as cheap as possible and also wants to earn as much as possible. When that happens it becomes unsustainable because if you cut profits of one business it affects the profits of many other businesses.

I think that the USA and countries like it should be focussing on manufacturing innovation rather than trying to compete with countries like India and China. The fact is if you want to manufacture a simple car, then India or China will always be cheaper than the USA. So manufacture a car with technology that noone else can make and that cuts the competition. The trick is to continously invest in innovation to stay ahead of the curve. Many companies in the USA do this, but some have lost sight. Just like Australia. Kind of. Maybe.