U.S DEBT CLOCK....
- Thread starter KTBKRUSHER
- Start date
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
The most shocking thing that most dont get, is that we cant pay this back
It aint gonna happen.
Most are too busy watching Big Brother and buying into the propaganda to see it coming.
The left is so focused on the Government giving them free stuff that we cant afford, and thinking they are doing this for the common folk. They want to help the poor , and the elderly, yet these are the ones who get hurt the most as we try to destroy or currency and inflate our way out of this mess.
All we can do is brace for impact
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The most shocking thing that most dont get, is that we cant pay this back
It aint gonna happen.
Most are too busy watching Big Brother and buying into the propaganda to see it coming.
The left is so focused on the Government giving them free stuff that we cant afford, and thinking they are doing this for the common folk. They want to help the poor , and the elderly, yet these are the ones who get hurt the most as we try to destroy or currency and inflate our way out of this mess.
All we can do is brace for impact
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Spytheweb
EOG Addicted
Re: U.S DEBT CLOCK....
Where were you guys 5 years ago, 3 years ago? Oh,we didn't have a black President.
Where were you guys 5 years ago, 3 years ago? Oh,we didn't have a black President.
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
More Racist talk huh Spy :doh1
Why do you care where I was 3,5 or 10 years ago?
I screamed at everyone that would listen that sending out free checks to everyone, and the bailouts were scam on every tax paying American that will go down in history
But now, we are dealing with a complete, out of control, madman
Lets deal with facts......, we are going the wrong way, and heading for a cliff
Saturday, August 29, 2009
The Five Horseman of Economic Apocalypse
(snippet by Chris Martenson)
Executive Summary
What can we expect next, and how will we recognize it?
A series of sharp, interrupted shocks is more likely than a major sudden collapse.
Five game-changing events, what I call The Five Horsemen, will indicate that the rules have changed and a new reality is about to take over:
The First Horseman: New credit growth falls below interest payments
The Second Horseman: The Fed monetizes debt
The Third Horseman: Government deficit spending exceeds 10% of GDP
The Fourth Horseman: The dollar goes down, while interest rates go up
The Fifth (and final) Horseman: US debt becomes denominated in foreign currencies
Severe structural damage has already been inflicted on our economy. As I wrote two weeks ago (May 16, 2009) in It Has Hit the Fan:
If you have been waiting for further confirmation about the direction of the economy, or waiting for a sign that it's now time to get serious about preparing for a future filled with less, this report is written for you.
You are living in the midst of the collapse of western economies, which are moving from a more complicated state to a less complicated one. This is it. Keep a journal, because it's happening right now.
Great Read Here
More Racist talk huh Spy :doh1
Why do you care where I was 3,5 or 10 years ago?
I screamed at everyone that would listen that sending out free checks to everyone, and the bailouts were scam on every tax paying American that will go down in history
But now, we are dealing with a complete, out of control, madman
Lets deal with facts......, we are going the wrong way, and heading for a cliff
Saturday, August 29, 2009
The Five Horseman of Economic Apocalypse
(snippet by Chris Martenson)
Executive Summary
What can we expect next, and how will we recognize it?
A series of sharp, interrupted shocks is more likely than a major sudden collapse.
Five game-changing events, what I call The Five Horsemen, will indicate that the rules have changed and a new reality is about to take over:
The First Horseman: New credit growth falls below interest payments
The Second Horseman: The Fed monetizes debt
The Third Horseman: Government deficit spending exceeds 10% of GDP
The Fourth Horseman: The dollar goes down, while interest rates go up
The Fifth (and final) Horseman: US debt becomes denominated in foreign currencies
Severe structural damage has already been inflicted on our economy. As I wrote two weeks ago (May 16, 2009) in It Has Hit the Fan:
If you have been waiting for further confirmation about the direction of the economy, or waiting for a sign that it's now time to get serious about preparing for a future filled with less, this report is written for you.
You are living in the midst of the collapse of western economies, which are moving from a more complicated state to a less complicated one. This is it. Keep a journal, because it's happening right now.
Great Read Here
Re: U.S DEBT CLOCK....
I believe I was right here.
the debt has disturbed me for a while.
but this president is running it up faster than any before him...that is just a fact.
I am sorry you libs don't want to admit truth and think it is only because he is bi-racial...but fact is his policies are horrible and he is sending the country in a very bad direction on the majority of them...
what the last administration did or didn't do has almost nothing to do with 90% of his policies
I believe I was right here.
the debt has disturbed me for a while.
but this president is running it up faster than any before him...that is just a fact.
I am sorry you libs don't want to admit truth and think it is only because he is bi-racial...but fact is his policies are horrible and he is sending the country in a very bad direction on the majority of them...
what the last administration did or didn't do has almost nothing to do with 90% of his policies
4625
2
Re: U.S DEBT CLOCK....
Well no, as a factual matter, he's doing little that's different from the administration of the buffoon. There may be a slight matter of degree difference, but the principle is substantially the same. If the policy is not that dissimilar, there is only one other "fact" that distinguishes His Royal Highness Comrade Crown Prince Hussein (who is a black man very near the white women, I might add) from the buffoon.
Well no, as a factual matter, he's doing little that's different from the administration of the buffoon. There may be a slight matter of degree difference, but the principle is substantially the same. If the policy is not that dissimilar, there is only one other "fact" that distinguishes His Royal Highness Comrade Crown Prince Hussein (who is a black man very near the white women, I might add) from the buffoon.
Re: U.S DEBT CLOCK....
he is running way left of Bush...try to link them all you can but it just aint' true.
hell we just had our largest death toll month ever in Afghanastan but that was told nowhere on the news was it.
this cash for clunkers is stupid, the overhaul and more and more bailouts.
we are well...in trouble
he is running way left of Bush...try to link them all you can but it just aint' true.
hell we just had our largest death toll month ever in Afghanastan but that was told nowhere on the news was it.
this cash for clunkers is stupid, the overhaul and more and more bailouts.
we are well...in trouble
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
When we crash this time, its gonna hurt
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When we crash this time, its gonna hurt
<EMBED src=http://www.swflgrapevine.com/file/player/flvplayer.swf width=495 height=385 type=application/x-shockwave-flash flashvars="file=292.flv&logo=http://www.swflgrapevine.com/file/pic/watermark/video.gif&autostart=false&repeat=false&backcolor=0xFFFFFF&frontcolor=0x000000&lightcolor=0x000000&link=http://www.swflgrapevine.com/videos/&image=http://www.swflgrapevine.com/file/videos/image/292.jpg&allowfullscreen=true&width=495&height=385&displayheight=365&overstretch=fit" allowfullscreen="true" quality="high">
Re: U.S DEBT CLOCK....
NICE FIND.
VERY TRUE BUT THE "LEFT" WILL NEVER ADMIT IT.
GOOD EXAMPLE WITH THE SPEEDING CAR
NICE FIND.
VERY TRUE BUT THE "LEFT" WILL NEVER ADMIT IT.
GOOD EXAMPLE WITH THE SPEEDING CAR
Fictionman
EOG Addicted
Re: U.S DEBT CLOCK....
Last updated September 2, 2009 4:49 p.m. PT
Giant national debt needs giant calculator
THE ASSOCIATED PRESS
<!--BEGIN ARTICLE-->MONTROSE, Colo. -- The national debt is so large, it doesn't even fit on most calculators. Western Colorado real estate developer Matt Miles says he was concerned that no one in government, nor most Americans, had ever seen the number. So he made a new calculator.
The "Big Red" calculator displays 16 digits. That's enough to show all the numbers in the national debt, which totaled nearly $11.8 trillion - or $11,792,918,170,836.43 - at the start of September.
Miles says he wants to get people thinking about how much the United States owes.
He wouldn't say how much he invested to launch Big Red, but he says the number fits comfortably on a standard calculator.
Last updated September 2, 2009 4:49 p.m. PT
Giant national debt needs giant calculator
THE ASSOCIATED PRESS
<!--BEGIN ARTICLE-->MONTROSE, Colo. -- The national debt is so large, it doesn't even fit on most calculators. Western Colorado real estate developer Matt Miles says he was concerned that no one in government, nor most Americans, had ever seen the number. So he made a new calculator.
The "Big Red" calculator displays 16 digits. That's enough to show all the numbers in the national debt, which totaled nearly $11.8 trillion - or $11,792,918,170,836.43 - at the start of September.
Miles says he wants to get people thinking about how much the United States owes.
He wouldn't say how much he invested to launch Big Red, but he says the number fits comfortably on a standard calculator.
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
National Debt Interest: U.S. Pays $1.2 Billion Daily
(snippet from 2008)
The U.S. national debt reached ten trillion dollars for the first time. With the help of ongoing industry bailouts and unrestrained military spending, it exceeded $10.56 trillion in the month since. Even more significant is the cost in interest on this debt to the government; according to treasurydirect.gov, the govt. will pay $25.3 billion dollars interest in November alone.
Link
National Debt Interest: U.S. Pays $1.2 Billion Daily
(snippet from 2008)
The U.S. national debt reached ten trillion dollars for the first time. With the help of ongoing industry bailouts and unrestrained military spending, it exceeded $10.56 trillion in the month since. Even more significant is the cost in interest on this debt to the government; according to treasurydirect.gov, the govt. will pay $25.3 billion dollars interest in November alone.
Link
Re: U.S DEBT CLOCK....
The U.S. national debt reached ten trillion dollars for the first time
just waiting for the libs to come tell us how all of that is Bush's fault
The U.S. national debt reached ten trillion dollars for the first time
just waiting for the libs to come tell us how all of that is Bush's fault
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
Tuesday, September 8, 2009
80% Tax Rate needed to pay off the Debt
Debt per person is now <STRIKE>$23,000.</STRIKE> $24,000. <STRIKE>644 Trillion dollars</STRIKE> 645 Trillion Dollars in Derivatives floating around. Interest on debt is 1 Trillion per year. Medicare fraud is <STRIKE>38 Trillion</STRIKE> 41 Trillion.
US DEBT CLOCK
<EMBED src=http://www.youtube.com/v/SGpq0ujAj8I&hl=en&fs=1& width=560 height=340 type=application/x-shockwave-flash allowfullscreen="true" allowscriptaccess="always">
Tuesday, September 8, 2009
80% Tax Rate needed to pay off the Debt
Debt per person is now <STRIKE>$23,000.</STRIKE> $24,000. <STRIKE>644 Trillion dollars</STRIKE> 645 Trillion Dollars in Derivatives floating around. Interest on debt is 1 Trillion per year. Medicare fraud is <STRIKE>38 Trillion</STRIKE> 41 Trillion.
US DEBT CLOCK
<EMBED src=http://www.youtube.com/v/SGpq0ujAj8I&hl=en&fs=1& width=560 height=340 type=application/x-shockwave-flash allowfullscreen="true" allowscriptaccess="always">
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
It is really hard to believe. They just wont stop
OBAMA SAYS: $250 BONUS FOR SENIORS <!-- Main headlines links END --->
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It is really hard to believe. They just wont stop
OBAMA SAYS: $250 BONUS FOR SENIORS <!-- Main headlines links END --->
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brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
To close out news domestically the October deficit number came in as the US begins a new fiscal year, and it's yet another "avert the children's eyes" moment.
http://www.europac.net/#
To close out news domestically the October deficit number came in as the US begins a new fiscal year, and it's yet another "avert the children's eyes" moment.
- The federal deficit hit a record for October as the new budget year began where the old one ended: with the government awash in red ink. The Treasury Department said Thursday that the deficit for October totaled $176.4 billion, even higher than the $150 billion imbalance that economists expected.
- October was the 13th straight month to show a monthly deficit -- another record. It was the fifth-largest monthly deficit ever.
- The imbalance came mostly from lower receipts of individual and corporate taxes. Receipts were $135.3 billion, a 17.9 percent drop from last October.
- Spending dipped 2.7 percent to $311.7 billion. Last October's outlays were inflated by the $33 billion spent on the first round of financial bailouts at the peak of the financial crisis.
- The Obama administration expects this year's deficit to reach $1.5 trillion. That would make it the third straight record annual deficit.
- The deficit for the 2009 budget year, which ended on Sept. 30, set an all-time record in dollar terms of $1.42 trillion. That was $958 billion above the 2008 deficit, the previous record holder. In relation to the overall economy, the 2009 deficit was 9.9 percent of the gross domestic product. That was the highest level since the World War II-era deficit hit 21.5 percent of GDP in 1945.
http://www.europac.net/#
scrimmage
What you contemplate you imitate
Re: U.S DEBT CLOCK....
<SMALL>So the government borrows money from itself for bailouts,doesn't spend it all,</SMALL>
<SMALL>and then uses what's left to pay down the deficit?:+clueless</SMALL>
<SMALL></SMALL><SMALL>and then uses what's left to pay down the deficit?:+clueless</SMALL>
<SMALL>
</SMALL>
</SMALL>
<SMALL>Journal Community
"This is another brilliant move.But why don't they extend this
to a logical conclusion.We use $12T of TARP money and pay
off ALL the debt? This is so easy,I should be a politician."
<CITE class="cMetadata metadataType-comment">? Chuck Moreland</CITE>
<CITE class="cMetadata metadataType-comment"></CITE>
<CITE class="cMetadata metadataType-comment"></CITE>
to a logical conclusion.We use $12T of TARP money and pay
off ALL the debt? This is so easy,I should be a politician."
<CITE class="cMetadata metadataType-comment">? Chuck Moreland</CITE>
<CITE class="cMetadata metadataType-comment"></CITE>
<CITE class="cMetadata metadataType-comment"></CITE>
</SMALL>White House Aims to Cut Deficit
With TARP Cash
With TARP Cash
By Deborah Solomon and Jonathan Weisman
November 13,2009
Excerpts from:
http://online.wsj.com/article/SB125799009185344567.html?mod=WSJ_hps_sections_news
WASHINGTON -- The Obama administration, under pressure to show it is serious about tackling the budget deficit, is seizing on an unusual target to showcase fiscal responsibility: the $700 billion financial rescue.
The administration wants to keep some of the unspent funds available for emergencies, but is considering setting aside a chunk for debt reduction, according to people familiar with the matter. It is also expected to lower the projected long-term cost of the program -- the amount it expects to lose -- to as little as $200 billion from $341 billion estimated in August.
November 13,2009
Excerpts from:
http://online.wsj.com/article/SB125799009185344567.html?mod=WSJ_hps_sections_news
WASHINGTON -- The Obama administration, under pressure to show it is serious about tackling the budget deficit, is seizing on an unusual target to showcase fiscal responsibility: the $700 billion financial rescue.
The administration wants to keep some of the unspent funds available for emergencies, but is considering setting aside a chunk for debt reduction, according to people familiar with the matter. It is also expected to lower the projected long-term cost of the program -- the amount it expects to lose -- to as little as $200 billion from $341 billion estimated in August.
On the $700 billion Troubled Asset Relief Program, the administration is considering a change that may appear to improve the fiscal situation. Agreeing not to spend a certain amount of TARP money will enable the White House, in its budget projections, to assume less money out the door and, therefore, less debt issued. The move would also reduce the deficit by an unknown amount since a certain level of spending and borrowing is already factored into estimated future deficits.
The move could buy the Treasury Department time before it hits the so-called debt ceiling, which limits the amount of money the U.S. can borrow. Already, some members of Congress have said they won't approve an increase in the $12.1 trillion debt cap unless efforts to reduce the deficit are included.
The move could buy the Treasury Department time before it hits the so-called debt ceiling, which limits the amount of money the U.S. can borrow. Already, some members of Congress have said they won't approve an increase in the $12.1 trillion debt cap unless efforts to reduce the deficit are included.
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
Cloward and Piven, overwealm the system 2348ji23e2348ji23e2348ji23e2348ji23e2348ji23e
http://www.discoverthenetworks.org/groupProfile.asp?grpid=6967
Saturday, December 5, 2009
Get Ready For The Crash. It's Coming
When President Obama entered office in January, the greatest problem America faced was neither the war in Afghanistan nor the recession. It was the imminent crisis of the welfare state.
Not only has Mr. Obama failed to deal with this crisis, he is pursuing policies that will bankrupt America.
In March, the Peter G. Peterson Foundation, led by former U.S. Comptroller General David Walker, calculated the total value of the federal government's "unfunded liabilities" as they stood at the end of fiscal 2008. These liabilities include the publicly held portion of the national debt plus the amount the government must pay to cover all the entitlement benefits it has promised to living Americans through Social Security, Medicare and other welfare-state programs minus the tax revenue the government can expect to collect to pay for these entitlements under existing tax law.
The sum of these unfunded liabilities, the foundation discovered, stood at $56.4 trillion. That equals $435,000 for every full-time worker in the United States.
THE LAST PARAGRAPH:
But if Mr. Obama succeeds in enacting his health care reform, he will move on to his plan for a "comprehensive immigration reform" that will put illegal immigrants on a "pathway to citizenship" - making them eligible for the federal health care entitlement.
If Mr. Obama succeeds, get ready for the crash. It is coming.
LINK HERE
Cloward and Piven, overwealm the system 2348ji23e2348ji23e2348ji23e2348ji23e2348ji23e
http://www.discoverthenetworks.org/groupProfile.asp?grpid=6967
- Strategy for forcing political change through orchestrated crisis
Saturday, December 5, 2009
Get Ready For The Crash. It's Coming
When President Obama entered office in January, the greatest problem America faced was neither the war in Afghanistan nor the recession. It was the imminent crisis of the welfare state.
Not only has Mr. Obama failed to deal with this crisis, he is pursuing policies that will bankrupt America.
In March, the Peter G. Peterson Foundation, led by former U.S. Comptroller General David Walker, calculated the total value of the federal government's "unfunded liabilities" as they stood at the end of fiscal 2008. These liabilities include the publicly held portion of the national debt plus the amount the government must pay to cover all the entitlement benefits it has promised to living Americans through Social Security, Medicare and other welfare-state programs minus the tax revenue the government can expect to collect to pay for these entitlements under existing tax law.
The sum of these unfunded liabilities, the foundation discovered, stood at $56.4 trillion. That equals $435,000 for every full-time worker in the United States.
THE LAST PARAGRAPH:
But if Mr. Obama succeeds in enacting his health care reform, he will move on to his plan for a "comprehensive immigration reform" that will put illegal immigrants on a "pathway to citizenship" - making them eligible for the federal health care entitlement.
If Mr. Obama succeeds, get ready for the crash. It is coming.
LINK HERE
Re: U.S DEBT CLOCK....
Progressivism: Because placating the lowest common denominator is always the surest path to liberty and prosperity.
:shoot:
Progressivism: Because placating the lowest common denominator is always the surest path to liberty and prosperity.
:shoot:
Re: U.S DEBT CLOCK....
So the Coming Depression blogger repost's a story from the Washington Times from months ago and this is suppose to make it more scary today???:doh1
Re: U.S DEBT CLOCK....
I wonder if Terance Jeffrey knows this guy took his article and re posted it on his website??HHHHMMMMMM???
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
Who gives a flying crap when the article was published, it gets worse by the second, and everything being done today makes a complete collapse more likely.
People will really get scared when they start to understand it is the purpose of these radical progressive left wing marxists ,to collapse the whole system onto itself, and start over
Explain to me how you have a jobs summit, and not invite the chamber of commerce??? :+clueless
Everyone needs to understand the G.P , to really get it!
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Cloward and Piven
<HR style="COLOR: #d1d1e1" SIZE=1><!-- / icon and title --><EMBED src=http://www.youtube.com/v/aiaLnQvy7_w&hl=en_US&fs=1& width=425 height=344 type=application/x-shockwave-flash allowfullscreen="true" allowscriptaccess="always"></EMBED>
US Already 292 Billion In the Red This Year
Note: Very loosely speaking, $132 billion x 12 = $1.584 trillion collected. Total expenditures = $2.854 trillion. Deficit = $1 trillion. How do you balance that?
WASHINGTON, Dec 4 (Reuters) - The U.S. government racked up a gaping shortfall in the first two months of this fiscal year after posting a record budget deficit last year, congressional analysts said on Friday.
BONDS
In October and November, the government spent $292 billion more than it took in, the nonpartisan Congressional Budget Office said.
That was even worse than the same period last year, when the government was on its way to posting a record $1.4 trillion deficit for the fiscal year that ended Sept. 30.
The federal budget has been battered by the worst economic downturn since the Great Depression of the 1930s, as tax revenues have plunged and spending on safety-net programs like unemployment insurance have skyrocketed.
LINK HERE
Who gives a flying crap when the article was published, it gets worse by the second, and everything being done today makes a complete collapse more likely.
People will really get scared when they start to understand it is the purpose of these radical progressive left wing marxists ,to collapse the whole system onto itself, and start over
Explain to me how you have a jobs summit, and not invite the chamber of commerce??? :+clueless
Everyone needs to understand the G.P , to really get it!
<HR style="COLOR: #d1d1e1" SIZE=1><!-- / icon and title --><EMBED src=http://www.youtube.com/v/X70pCrFIBvk&hl=en_US&fs=1& width=425 height=344 type=application/x-shockwave-flash allowfullscreen="true" allowscriptaccess="always"></EMBED>
Cloward and Piven
<HR style="COLOR: #d1d1e1" SIZE=1><!-- / icon and title --><EMBED src=http://www.youtube.com/v/aiaLnQvy7_w&hl=en_US&fs=1& width=425 height=344 type=application/x-shockwave-flash allowfullscreen="true" allowscriptaccess="always"></EMBED>
US Already 292 Billion In the Red This Year
Note: Very loosely speaking, $132 billion x 12 = $1.584 trillion collected. Total expenditures = $2.854 trillion. Deficit = $1 trillion. How do you balance that?
WASHINGTON, Dec 4 (Reuters) - The U.S. government racked up a gaping shortfall in the first two months of this fiscal year after posting a record budget deficit last year, congressional analysts said on Friday.
BONDS
In October and November, the government spent $292 billion more than it took in, the nonpartisan Congressional Budget Office said.
That was even worse than the same period last year, when the government was on its way to posting a record $1.4 trillion deficit for the fiscal year that ended Sept. 30.
The federal budget has been battered by the worst economic downturn since the Great Depression of the 1930s, as tax revenues have plunged and spending on safety-net programs like unemployment insurance have skyrocketed.
LINK HERE
Re: U.S DEBT CLOCK....
Things were great but in the last year they have suddenly gone bad. Gotcha and duly noted.
Who gives a crap??I sure as hell would if I was the one that wrote it and it was plagiarism. Yes we know Bruce the world is ending soon since you have been saying this for months now and eventually your doom and gloom will come true and you will be happy as hell claiming I told you so, and if they do not come true then you can keep doing what you do best.....doom and gloom, doom and gloom.Funny how you was silent when this shit all started over 5 years ago but do not let your bias get in the way of the obvious to everyone else.
Things were great but in the last year they have suddenly gone bad. Gotcha and duly noted.
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
How the hell do you know if I was silent or loud?
I will never understand that stupid response by people like you, and have no clue what you imply when you say that?
Yes, things have been going bad for a long time, but for me, when you interrupted my regularly scheduled programming , to tell me my country is about to implode, then bail out wall street you got my attention
Now we elect a marxist left wing, commie, nut job, who just stole the wheel and is flooring it directly over the cliff,....... on purpose in the name of social justice:doh1
I dont care if you have been in a drunken stupor forever
SPEAK UP NOW!!
How the hell do you know if I was silent or loud?
I will never understand that stupid response by people like you, and have no clue what you imply when you say that?
Yes, things have been going bad for a long time, but for me, when you interrupted my regularly scheduled programming , to tell me my country is about to implode, then bail out wall street you got my attention
Now we elect a marxist left wing, commie, nut job, who just stole the wheel and is flooring it directly over the cliff,....... on purpose in the name of social justice:doh1
I dont care if you have been in a drunken stupor forever
SPEAK UP NOW!!
Re: U.S DEBT CLOCK....
Your doom and gloom threads did not start until after Barry was elected and that is all the proof that anyone needs . Same way with the tea baggers!!Why they was not worried when it was happening for the last 5 years is all the proof anyone needs to see.Same shit different boss.
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
You dont get it
Most of the people who have joined in protest have never been politically involved before
I believe most are people who knew in their gut something wasn't right, but just shrugged it off by saying all politicians are corrupt and that's the way it will always be. They voted in major elections, and ignored most others
Ron Paul's campaign woke up many people to the damage the Federal Reserve has done in ruining our currency, the dangers of inflation, the out of control deficit, and how counterfeiting has fueled spending by both parties.
Although Dr Paul got shafted, laughed at, never taken seriously by the media, his message was getting out in the debates and his rally's
He was able to pull interest in from both sides being anti nation building, as well as sounding the alarm for the danger of big government
People listened.
Then came the corrupt, scare tactics, and criminal heist of the bailouts which most were against, yet they saw both parties support,
That blew people's minds and woke up a sleeping giant
Then came Barak Hussein Obama
The most liberal Democrat ever nominated to be POTUS, as people watched videos on Fox of all this guys radical associations, his lies, and his lack of experience. Barak Obama is a marxist.
He then tries to convince everyone that the only way to fix our problem of too much spending and borrowing, is to spend and borrow more :doh1
The Tea Party patriots then get laughed at, ridiculed, and minimized, and that only adds fuel to the cause
No Glenn was right that it is better that Obama got elected .
It made the insanity more obvious, and would have been more disguised with John McCain
There is not much left for debate now, people are being forced to think, about our Country and its future direction
I just hope that its not too late, and there hasn't been too much damage already done
I dont care what you think, this is not about race, its not about Republicans or Democrats, its about people who are fed up ,and now awake, thanks to American hero's like Glenn Beck and Ron Paul.
Dont miss the show tonight, I think he found another Van Jones :cheers
You dont get it
Most of the people who have joined in protest have never been politically involved before
I believe most are people who knew in their gut something wasn't right, but just shrugged it off by saying all politicians are corrupt and that's the way it will always be. They voted in major elections, and ignored most others
Ron Paul's campaign woke up many people to the damage the Federal Reserve has done in ruining our currency, the dangers of inflation, the out of control deficit, and how counterfeiting has fueled spending by both parties.
Although Dr Paul got shafted, laughed at, never taken seriously by the media, his message was getting out in the debates and his rally's
He was able to pull interest in from both sides being anti nation building, as well as sounding the alarm for the danger of big government
People listened.
Then came the corrupt, scare tactics, and criminal heist of the bailouts which most were against, yet they saw both parties support,
That blew people's minds and woke up a sleeping giant
Then came Barak Hussein Obama
The most liberal Democrat ever nominated to be POTUS, as people watched videos on Fox of all this guys radical associations, his lies, and his lack of experience. Barak Obama is a marxist.
He then tries to convince everyone that the only way to fix our problem of too much spending and borrowing, is to spend and borrow more :doh1
The Tea Party patriots then get laughed at, ridiculed, and minimized, and that only adds fuel to the cause
No Glenn was right that it is better that Obama got elected .
It made the insanity more obvious, and would have been more disguised with John McCain
There is not much left for debate now, people are being forced to think, about our Country and its future direction
I just hope that its not too late, and there hasn't been too much damage already done
I dont care what you think, this is not about race, its not about Republicans or Democrats, its about people who are fed up ,and now awake, thanks to American hero's like Glenn Beck and Ron Paul.
Dont miss the show tonight, I think he found another Van Jones :cheers
Re: U.S DEBT CLOCK....
I have attended 2 local tea parties and it was all anti-Obama and most of them had no clue about why they were there other than protesting against Obama.I have no problem with that but let's get serious about the issues and not single out one party since they are both guilty and what we can do to take back our country .
I got it years ago.I was the one that was kicked out of Republican circles because I questioned Bush and the direction the country was going in ,especially the Republican Party.I found a lot of others like me in Libertarian circles and our numbers continue to grow thanks to the inept major parties that continue to sell themselves to the highest bidder.
I have attended 2 local tea parties and it was all anti-Obama and most of them had no clue about why they were there other than protesting against Obama.I have no problem with that but let's get serious about the issues and not single out one party since they are both guilty and what we can do to take back our country .
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
Merry Christmas everyone
Your credit limit has been raised
Well Done
Congress raises debt ceiling to $12.4 trillion... <!-- Left Main headlines links END -->
<!-- Copyright 2009 Drudge Report, All Rights Reserved. Redistribution Prohibited -->
Merry Christmas everyone
Your credit limit has been raised
Well Done
Congress raises debt ceiling to $12.4 trillion... <!-- Left Main headlines links END -->
<!-- Copyright 2009 Drudge Report, All Rights Reserved. Redistribution Prohibited -->
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
but.....
It Is Now Mathematically Impossible To Pay Off The U.S. National Debt
<HR style="COLOR: #a93c3c; BACKGROUND-COLOR: #a93c3c" SIZE=1><!-- / icon and title --><!-- message -->A lot of people are very upset about the rapidly increasing U.S. national debt these days and they are demanding a solution. What they don't realize is that there simply is not a solution under the current U.S. financial system. It is now mathematically impossible for the U.S. government to pay off the U.S. national debt. You see, the truth is that the U.S. government now owes more dollars than actually exist. If the U.S. government went out today and took every single penny from every single American bank, business and taxpayer, they still would not be able to pay off the national debt. And if they did that, obviously American society would stop functioning because nobody would have any money to buy or sell anything.
And the U.S. government would still be massively in debt.
So why doesn't the U.S. government just fire up the printing presses and print a bunch of money to pay off the debt?
Well, for one very simple reason.
That is not the way our system works.
You see, for more dollars to enter the system, the U.S. government has to go into more debt.
The U.S. government does not issue U.S. currency - the Federal Reserve does.
The U.S. government cannot simply go out and create new money whenever it wants under our current system.
Instead, it must get it from the Federal Reserve.
So, when the U.S. government needs to borrow more money (which happens a lot these days) it goes over to the Federal Reserve and asks them for some more green pieces of paper called Federal Reserve Notes.
The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves (which happens a lot these days).
So that is how the U.S. government gets more green pieces of paper called "U.S. dollars" to put into circulation. But by doing so, they get themselves into even more debt which they will owe even more interest on.
So every time the U.S. government does this, the national debt gets even bigger and the interest on that debt gets even bigger.
Are you starting to get the picture?
As you read this, the U.S. national debt is approximately 12 trillion dollars, although it is going up so rapidly that it is really hard to pin down an exact figure.
So how much money actually exists in the United States today?
Well, there are several ways to measure this.
The "M0" money supply is the total of all physical bills and currency, plus the money on hand in bank vaults and all of the deposits those banks have at reserve banks. As of mid-2009, the Federal Reserve said that this amount was about 908 billion dollars.
The "M1" money supply includes all of the currency in the "M0" money supply, along with all of the money held in checking accounts and other checkable accounts at banks, as well as all money contained in travelers' checks. According to the Federal Reserve, this totaled approximately 1.7 trillion dollars in December 2009, but not all of this money actually "exists" as we will see in a moment.
The "M2" money supply includes everything in the "M1" money supply plus most other savings accounts, money market accounts, retail money market mutual funds, and small denomination time deposits (certificates of deposit of under $100,000). According to the Federal Reserve, this totaled approximately 8.5 trillion dollars in December 2009, but once again, not all of this money actually "exists" as we will see in a moment.
The "M3" money supply includes everything in the "M2" money supply plus all other CDs (large time deposits and institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements. The Federal Reserve does not keep track of M3 anymore, but according to ShadowStats.com it is currently somewhere in the neighborhood of 14 trillion dollars. But again, not all of this "money" actually "exists" either.
The truth is that the U.S. government is in much bigger financial trouble than we have been led to believe.
For example, according to the report (which remember is an official U.S. government report) the real U.S. budget deficit for 2008 was not 455 billion dollars. It was actually 5.1 trillion dollars.
So why the difference?
The CBO's 455 billion figure is based on cash accounting, while the 5.1 trillion figure in the 2008 Financial Report of the United States Government is based on GAAP accounting. GAAP accounting is what is used by all the major firms on Wall Street and it is regarded as a much more accurate reflection of financial reality.
So needless to say, the United States is in a financial mess of unprecedented magnitude.
So what should we do? Does anyone have any suggestions?
http://theeconomiccollapseblog.com/a...-national-debt
It Is Now Mathematically Impossible To Pay Off The U.S. National Debt
<HR style="COLOR: #a93c3c; BACKGROUND-COLOR: #a93c3c" SIZE=1><!-- / icon and title --><!-- message -->A lot of people are very upset about the rapidly increasing U.S. national debt these days and they are demanding a solution. What they don't realize is that there simply is not a solution under the current U.S. financial system. It is now mathematically impossible for the U.S. government to pay off the U.S. national debt. You see, the truth is that the U.S. government now owes more dollars than actually exist. If the U.S. government went out today and took every single penny from every single American bank, business and taxpayer, they still would not be able to pay off the national debt. And if they did that, obviously American society would stop functioning because nobody would have any money to buy or sell anything.
And the U.S. government would still be massively in debt.
So why doesn't the U.S. government just fire up the printing presses and print a bunch of money to pay off the debt?
Well, for one very simple reason.
That is not the way our system works.
You see, for more dollars to enter the system, the U.S. government has to go into more debt.
The U.S. government does not issue U.S. currency - the Federal Reserve does.
The U.S. government cannot simply go out and create new money whenever it wants under our current system.
Instead, it must get it from the Federal Reserve.
So, when the U.S. government needs to borrow more money (which happens a lot these days) it goes over to the Federal Reserve and asks them for some more green pieces of paper called Federal Reserve Notes.
The Federal Reserve swaps these green pieces of paper for pink pieces of paper called U.S. Treasury bonds. The Federal Reserve either sells these U.S. Treasury bonds or they keep the bonds for themselves (which happens a lot these days).
So that is how the U.S. government gets more green pieces of paper called "U.S. dollars" to put into circulation. But by doing so, they get themselves into even more debt which they will owe even more interest on.
So every time the U.S. government does this, the national debt gets even bigger and the interest on that debt gets even bigger.
Are you starting to get the picture?
As you read this, the U.S. national debt is approximately 12 trillion dollars, although it is going up so rapidly that it is really hard to pin down an exact figure.
So how much money actually exists in the United States today?
Well, there are several ways to measure this.
The "M0" money supply is the total of all physical bills and currency, plus the money on hand in bank vaults and all of the deposits those banks have at reserve banks. As of mid-2009, the Federal Reserve said that this amount was about 908 billion dollars.
The "M1" money supply includes all of the currency in the "M0" money supply, along with all of the money held in checking accounts and other checkable accounts at banks, as well as all money contained in travelers' checks. According to the Federal Reserve, this totaled approximately 1.7 trillion dollars in December 2009, but not all of this money actually "exists" as we will see in a moment.
The "M2" money supply includes everything in the "M1" money supply plus most other savings accounts, money market accounts, retail money market mutual funds, and small denomination time deposits (certificates of deposit of under $100,000). According to the Federal Reserve, this totaled approximately 8.5 trillion dollars in December 2009, but once again, not all of this money actually "exists" as we will see in a moment.
The "M3" money supply includes everything in the "M2" money supply plus all other CDs (large time deposits and institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements. The Federal Reserve does not keep track of M3 anymore, but according to ShadowStats.com it is currently somewhere in the neighborhood of 14 trillion dollars. But again, not all of this "money" actually "exists" either.
The truth is that the U.S. government is in much bigger financial trouble than we have been led to believe.
For example, according to the report (which remember is an official U.S. government report) the real U.S. budget deficit for 2008 was not 455 billion dollars. It was actually 5.1 trillion dollars.
So why the difference?
The CBO's 455 billion figure is based on cash accounting, while the 5.1 trillion figure in the 2008 Financial Report of the United States Government is based on GAAP accounting. GAAP accounting is what is used by all the major firms on Wall Street and it is regarded as a much more accurate reflection of financial reality.
So needless to say, the United States is in a financial mess of unprecedented magnitude.
So what should we do? Does anyone have any suggestions?
http://theeconomiccollapseblog.com/a...-national-debt
Re: U.S DEBT CLOCK....
Thank you socialism. 2938u4ji23
Thank you socialism. 2938u4ji23
Re: U.S DEBT CLOCK....
The Seer
EOG Dedicated
Re: U.S DEBT CLOCK....
It's the Congress, (insert insult here), that "has the power to coin money and all spending Bills shall start in the Congress". I cannot quote the Constitution exactly but Congress spends the money, black or otherwise president only signs the Bill.
The Pelosi Congress is spending money and raising the debt at the rate per month of what big spender Bush did in one whole year.
It's the Congress, (insert insult here), that "has the power to coin money and all spending Bills shall start in the Congress". I cannot quote the Constitution exactly but Congress spends the money, black or otherwise president only signs the Bill.
The Pelosi Congress is spending money and raising the debt at the rate per month of what big spender Bush did in one whole year.
Re: U.S DEBT CLOCK....
The entire economy went into the tank after Democrats took over Congress.
"Bush this, Bush that!"
Obama inherited this, Obama inherited that!"
Not true.
The Dems have been in charge since 2006.
The entire economy went into the tank after Democrats took over Congress.
"Bush this, Bush that!"
Obama inherited this, Obama inherited that!"
Not true.
The Dems have been in charge since 2006.
The Seer
EOG Dedicated
Re: U.S DEBT CLOCK....
It would be interesting to see how many members can say this in how many ways. I used "The Pelosi Congress is spending money and raising the debt at the rate per month of what big spender Bush did in one whole year."
I like Joe's better for brevity, mine for information.
Why are image files not coming up anymore? I have the img in bb code correctly. I could not change my signature picture also.
For Barfomation see http://www.house.gov/pelosi/
November 7, 2009 ~ Congresswoman Pelosi joins fellow House Democrats after the historic passage of the Affordable Health Care for America Act by a vote of 220 - 215.
It would be interesting to see how many members can say this in how many ways. I used "The Pelosi Congress is spending money and raising the debt at the rate per month of what big spender Bush did in one whole year."
I like Joe's better for brevity, mine for information.
Why are image files not coming up anymore? I have the img in bb code correctly. I could not change my signature picture also.
For Barfomation see http://www.house.gov/pelosi/
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
President Obama Signs Law Raising Public Debt Limit from $12.4 Trillion to $14.3 Trillion
February 12, 2010 3:21 PM
<!-- ABCNews.com
--><!--share toolbox--><SCRIPT type=text/javascript>abcNewsShare.render(false,false,false,'http://feeds.abcnews.com/abcnews/politicalpunchblog',false,'addthis',false,'blog entry');</SCRIPT>Behind closed doors and with no cameras present, President Obama signed into law Friday afternoon the bill raising the public debt limit from $12.394 trillion to $14.294 trillion.
The current national debt is $12.3 trillion. Check out the National Debt Clock, which tells you your share of that -- roughly $40,000 per citizen, $113,000 per taxpayer.
The bill also establishes a statutory Pay-As-You-Go procedure requiring that new non-emergency legislation affecting tax revenue or mandatory spending not increase the Federal deficit ? in other words, that any new spending or tax cuts be paid for with new taxes or spending cuts.
-jpt
February 12, 2010 | Permalink
:shoot:
President Obama Signs Law Raising Public Debt Limit from $12.4 Trillion to $14.3 Trillion
February 12, 2010 3:21 PM
<!-- ABCNews.com
--><!--share toolbox--><SCRIPT type=text/javascript>abcNewsShare.render(false,false,false,'http://feeds.abcnews.com/abcnews/politicalpunchblog',false,'addthis',false,'blog entry');</SCRIPT>Behind closed doors and with no cameras present, President Obama signed into law Friday afternoon the bill raising the public debt limit from $12.394 trillion to $14.294 trillion.
The current national debt is $12.3 trillion. Check out the National Debt Clock, which tells you your share of that -- roughly $40,000 per citizen, $113,000 per taxpayer.
The bill also establishes a statutory Pay-As-You-Go procedure requiring that new non-emergency legislation affecting tax revenue or mandatory spending not increase the Federal deficit ? in other words, that any new spending or tax cuts be paid for with new taxes or spending cuts.
-jpt
February 12, 2010 | Permalink
:shoot:
The Seer
EOG Dedicated
Re: U.S DEBT CLOCK....
As I sit with a foot of snow up in Birmingham, it has happened because of Global warming. However in 2007, there was little snow in the Sierra Nevada's snow pack and potential drought for most of LA, the reason for no snow was Global warming.
I cannot remember there being a few inches of snow on the ground overnight in central Alabama ever.
As I sit with a foot of snow up in Birmingham, it has happened because of Global warming. However in 2007, there was little snow in the Sierra Nevada's snow pack and potential drought for most of LA, the reason for no snow was Global warming.
I cannot remember there being a few inches of snow on the ground overnight in central Alabama ever.
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
So during Christmas, the debt ceiling was raised to 12.4 trillion, and that lasted all the way to....... Feb
Now 14.3 trillion, and we will spend every of it thanks to Obama and his crapulis spending bills, entitlement programs, and giveaways
We are doomed, there is no hope
Things are going to get much worse before they get better
<TABLE><TBODY><TR><TD align=middle>
</TD></TR><TR><TD class=collapse><TABLE><TBODY><TR><TD align=left>Gold:
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE><TABLE><TBODY><TR><TD align=middle>
</TD></TR><TR><TD class=collapse><TABLE><TBODY><TR><TD align=left>Silver:
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
So during Christmas, the debt ceiling was raised to 12.4 trillion, and that lasted all the way to....... Feb
Now 14.3 trillion, and we will spend every of it thanks to Obama and his crapulis spending bills, entitlement programs, and giveaways
We are doomed, there is no hope
Things are going to get much worse before they get better
<TABLE><TBODY><TR><TD align=middle>
</TD></TR><TR><TD class=collapse><TABLE><TBODY><TR><TD align=left>Gold:</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE><TABLE><TBODY><TR><TD align=middle>
</TD></TR><TR><TD class=collapse><TABLE><TBODY><TR><TD align=left>Silver:</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>
brucefan
EOG Dedicated
Re: U.S DEBT CLOCK....
The truth will set you free.
A doctor that tells you that you have cancer, is not a fear monger, or someone spreading hate
They are telling you the truth
While the zombies cheer for more free stuff, and our government tries to make laws to determine how much money is 'fair" for us to have...
our economy is collapsing
Keep going Mr Beck, some of us our watching you, and not the Bigest Loser.
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD align=middle><CENTER>[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=+2]Evaluating US Treasury Auction Distress[/SIZE][/FONT]
</CENTER>
</TD></TR></TBODY></TABLE><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD>
[FONT=Arial, Verdana, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif]-- Posted Thursday, 8 April 2010 | Digg This Article
[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif] |<SCRIPT src="http://w.sharethis.com/button/sharethis.js#publisher=fcf60c63-d3ea-4686-ac51-51a1eae2a62b&type=website&buttonText=Share%20this%20article&style=rotate&headerTitle=news.GoldSeek.com" type=text/javascript></SCRIPT> Share this article| Source: GoldSeek.com[/FONT]
By Ron Hera<?XML:NAMESPACE PREFIX = O /><O
></O>
April 8, 2010<O></O>
?2010 Hera Research, LLC<O></O>
<O></O>
Investors often seek safety from financial market turbulence in US government bonds since they offer virtually no risk of default and, unlike cash or gold, provide a yield. At the same time, sovereign debt default concerns outside the US, e.g., Iceland, Dubai, and Greece, have been linked to short-term rallies in the US dollar and have diverted attention from the fiscal challenges facing the US. However, since seven US states are in worse financial condition than <?XML:NAMESPACE PREFIX = ST1 /><ST1:COUNTRY-REGION w:st="on">Greece</ST1:COUNTRY-REGION>, <ST1:COUNTRY-REGION w:st="on">Ireland</ST1:COUNTRY-REGION>, <ST1:COUNTRY-REGION w:st="on">Portugal</ST1:COUNTRY-REGION> or <ST1:COUNTRY-REGION w:st="on"><ST1LACE w:st="on">Spain</ST1LACE></ST1:COUNTRY-REGION>, shelter may prove hard to find. With a $3.83 trillion budget, a $12.3 trillion federal government debt, a $1.35 trillion 2010 budget deficit and $63 trillion in unfunded liabilities, the fiscal condition of the US has come into question and foreign interest in US Treasuries has declined. In late March, it was reported that the 10-year US Treasury Note yield had risen 30 basis points and that foreign holders of 10-year Notes were selling in record numbers.<O></O>
<O></O>
<TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top><O></O>
Reports of US Treasury auction distress first appeared in December of 2009 when an article by Eric Sprott and David Franklin entitled ?Is it All Just a Ponzi Scheme?? questioned the ?Other Investors? reported by the US Federal Reserve. The unidentified investors held $359.1 billion worth of US Treasuries in the forth quarter of 2008 but $880.5 billion by the end of the third quarter 2009, an increase of $521.4 billion. Based on the Federal Reserve Flow of Funds Report, Messrs. Sprott and Franklin found the increase attributable to the ?Household Sector?, which is defined in the Federal Reserve?s Flow of Funds Guide as ??amounts held or owed by the other sectors ? subtracted from known totals ? [such that] the remainders are assumed to be the amounts held or owed by the household sector.? Thus, the ?Household Sector? is strictly an artifact of accounting practices, and, as a result, there has been some speculation regarding the parties responsible for $521.4 billion in 2009 US Treasury purchases.<O></O>
<O></O>
A recent analysis of 4-week Treasury auction results by OmniSans Investment Research suggested that US Treasury auctions are more distressed than has been generally recognized, and a similar analysis appeared on the popular Zero Hedge website.<O></O>
<O></O>
<TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>></O>
The OmniSans and Zero Hedge articles focus on the percent of Treasury auction purchases made by the Federal Reserve?s own primary dealers, as compared with other bidders, and on the percentage of indirect (foreign) bids accepted. In particular, the acceptance of 100% of foreign bids suggests extremely weak foreign demand. While the evidence is accurate, the conclusion is less clear since the changing pattern of US Treasury auction results is more complex.<O></O>
<O></O>
Federal Reserve measures designed to increase financial market liquidity and to recapitalize the banking system, such as the Term Asset-Backed Securities Loan Facility (TALF), represent monetary inflation (or re-inflation), and some of this currency has certainly found its way into the coffers of the US Treasury, i.e., a rise in primary dealer purchases. A rise in primary dealer purchases could also be a result of the low cost of borrowing from the Federal Reserve. In theory, primary dealers can generate profits simply by borrowing from the Federal Reserve at near zero percent interest rates and buying Treasuries with higher yields. Of course, primary dealer purchases funded by borrowing from the Federal Reserve would be tantamount to debt monetization.<O></O>
<O></O>
An increase in primary dealer purchases, or in purchases by direct bidders, could compensate for a decline in foreign purchases of US Treasuries but would not explain it. To be significant, a decline in foreign purchases would have to be evident in more than one type of Treasury, i.e., outside of the reported 1.0 bid to cover ratio for indirect bidders in recent 4-week Treasury Bill auctions.<O></O>
<O></O>
What may be an emerging pattern of falling foreign demand and rising primary dealer purchases, both of which have been moderated by an increase in purchases made by direct bidders (financial institutions that place bids directly with the US Treasury, such as domestic depository institutions and mutual funds) is evident in 4-week Treasury Bill auction results.<O></O>
<O></O>
<TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>></O>
Direct Federal Reserve purchases of US Treasuries (monetization) have been distributed over Treasuries of different types and maturities and have been generally implemented as a consistent, low-level of buying for particular Bills, Notes or Bonds. Overall, the Federal Reserve increased its holdings of US Treasuries by $286 billion in 2009, an increase of more than 60% as of September 2009 compared to 2008, and, as of March 2010, the Federal Reserve?s holdings of US Treasuries had increased another $14 billion to roughly $777 billion.<O></O>
<O></O>
What is important is that monetization has been most significant in 4-week Treasury Bills, reaching 38.59% of total 4-week Treasury Bill sales on January 26, 2010, but similar spikes in Federal Reserve purchases do not appear in auction results for other types of Treasuries. Thus, it should come as no surprise that 4-week Treasury Bills have fallen out of favor with foreign investors.<O></O>
<O></O>
Of course, the amount of currency created by monetization in a particular auction, regardless of the percent of Treasuries purchased by the Federal Reserve, represents only a small fraction of the monetary base. Nonetheless, there is not only a psychological dimension but also aggregate effects on the balance sheet of the Federal Reserve, on the US dollar and, ultimately, on the viability of US Treasury auctions.<O></O>
<O></O>
A general pattern of decreased indirect bidder participation offset by rising direct bidder participation, setting aside any increase in primary dealer purchases, is evident outside of 4-week Treasury Bill auctions.<O></O>
<O></O>
<TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>></O>
Foreign demand for 30-year Treasury Bonds has fallen over the past year, suggesting that foreign purchases may have shifted towards the short end of the maturity continuum. The more significant fact, however, is the marked increase in direct bidder purchasing, which has more than compensated for slack foreign demand at the extreme long end of the spectrum leaving primary dealer purchases flat.<O></O>
<O></O>
Given the increase in direct bidder purchases, and reflecting on the questions raised by Messrs. Sprott and Franklin, it seems likely that the $521.4 billion worth of US Treasuries in 2009 reflects otherwise unclassified direct bidders, i.e., direct bidders other than recognized domestic investment funds and depository institutions. Unfortunately, the identities of the bidders remain unknown in any case.<O></O>
<O></O>
The most dramatic example of primary dealer purchases replacing indirect (foreign) bidders is in Cash Management Bills, but these represent a rolling debt of perhaps $100 billion analogous to the corporate bond market and are not representative of other types of Treasuries.<O></O>
<O></O>
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While there are apparent signs of Treasury auction distress, based on a survey of Treasury auction data from January 2009 to March 2010, there is no indication of an immanent auction failure so long as the primary dealers and direct bidders continue to step into the breach. Further, the same patterns either do not appear or are much less pronounced in longer-term Treasury Note sales.<O></O>
<O></O>
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It seems unlikely that direct bidders within the US can compensate indefinitely, or to an unlimited extent, for falling foreign demand. Commenting on the ambitious spending plans of the US federal government, Zhu Min, Deputy Governor of the People's Bank of China said in December 2009 that "the world does not have so much money to buy more US Treasuries."<O></O>
<O></O>
It would certainly be unreasonable for the US federal government and Federal Reserve to assume that ambitious deficit spending and ongoing quantitative easing (QE) would have no cumulative impact on US Treasury auctions. If there is a limit to foreign appetite for US debt, to foreign capacity to lend to the US, or to international tolerance for US dollar devaluation, the US government and Federal Reserve seem determined to find it.<O></O>
<O></O>
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China's foreign exchange reserves, valued at $2,399.2 billion at the end of December 2009 (not including gold), include only $894.8 billion in US Treasury bonds. In contrast, the US must issue or roll over $702 billion in debt in 2010 and a total of $2.55 trillion in Treasuries to be issued this year, while $3.7 trillion in US Treasuries are held abroad.<O></O>
<O></O>
While US GDP was at $14.46 trillion in 2009 (with debt levels set to rise to 90% of GDP by 2020), China?s GDP is currently estimated as $8.791 trillion. Although there are signs of recovery in Chinese exports, the entire value of China's reserves, assuming that its current Treasury holdings could be liquidated, is insufficient to finance US federal government debt in 2010.<O></O>
<O></O>
Since China recently liquidated $34 billion in US Treasuries, the statement of China?s Director of the State Administration of Foreign Exchange, Yi Gang, ?[China is] a responsible investor and in the process of these investments we can definitely achieve a mutually beneficial result" seems obligatory. In reality, the US is currently the largest debtor nation in the history of the world, while China is the US? largest creditor, and neither China nor any other country is in a position to bail out the US should US Treasury auctions run aground. Nonetheless, an overt Treasury auction failure seems impossible with the Federal Reserve as the lender of last resort to domestic depository institutions and to its own primary dealers. Unfortunately, direct monetary inflation is not without consequences. Specifically, increased debt monetization would impact the value of the US dollar and could spark high inflation, i.e., rising US dollar prices for imported goods and energy, or an eventual hyperinflationary collapse of the US dollar.<O></O>
<O></O>
Without a robust economic recovery in the US, it seems unlikely that the apparent distress of US Treasury auctions will abate. Among other things, the gap between increasing US federal government spending and falling federal tax receipts is currently growing. A continuation of current US federal government and Federal Reserve policies under deteriorating economic conditions suggests levels of debt that could not be absorbed by US creditors, and a so-called double-dip recession would put extreme pressure on the US dollar. Indicators of Treasury auction distress include:<O></O>
<O></O>
></O>
<O></O>
About Hera Research<O></O>
Hera Research, LLC, provides deeply researched analysis to help investors profit from changing economic and market conditions. Hera Research focuses on relationships between macroeconomics, government, banking, and financial markets in order to identify and analyze investment opportunities with extraordinary upside potential. Hera Research is currently researching mining and metals including precious metals, oil and energy including green energy, agriculture, and other natural resources. The Hera Research Monthly newsletter covers key economic data, trends and analysis including reviews of companies with extraordinary value and upside potential.<O></O>
<O></O>
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The truth will set you free.
A doctor that tells you that you have cancer, is not a fear monger, or someone spreading hate
They are telling you the truth
While the zombies cheer for more free stuff, and our government tries to make laws to determine how much money is 'fair" for us to have...
our economy is collapsing
Keep going Mr Beck, some of us our watching you, and not the Bigest Loser.
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD align=middle><CENTER>[FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=+2]Evaluating US Treasury Auction Distress[/SIZE][/FONT]
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[FONT=Arial, Verdana, Helvetica, sans-serif][FONT=Verdana, Arial, Helvetica, sans-serif]-- Posted Thursday, 8 April 2010 | Digg This Article
[/FONT][FONT=Verdana, Arial, Helvetica, sans-serif] |<SCRIPT src="http://w.sharethis.com/button/sharethis.js#publisher=fcf60c63-d3ea-4686-ac51-51a1eae2a62b&type=website&buttonText=Share%20this%20article&style=rotate&headerTitle=news.GoldSeek.com" type=text/javascript></SCRIPT> Share this article| Source: GoldSeek.com[/FONT] By Ron Hera<?XML:NAMESPACE PREFIX = O /><O
></O>April 8, 2010<O
></O>?2010 Hera Research, LLC<O
></O><O
></O>Investors often seek safety from financial market turbulence in US government bonds since they offer virtually no risk of default and, unlike cash or gold, provide a yield. At the same time, sovereign debt default concerns outside the US, e.g., Iceland, Dubai, and Greece, have been linked to short-term rallies in the US dollar and have diverted attention from the fiscal challenges facing the US. However, since seven US states are in worse financial condition than <?XML:NAMESPACE PREFIX = ST1 /><ST1:COUNTRY-REGION w:st="on">Greece</ST1:COUNTRY-REGION>, <ST1:COUNTRY-REGION w:st="on">Ireland</ST1:COUNTRY-REGION>, <ST1:COUNTRY-REGION w:st="on">Portugal</ST1:COUNTRY-REGION> or <ST1:COUNTRY-REGION w:st="on"><ST1
LACE w:st="on">Spain</ST1LACE></ST1:COUNTRY-REGION>, shelter may prove hard to find. With a $3.83 trillion budget, a $12.3 trillion federal government debt, a $1.35 trillion 2010 budget deficit and $63 trillion in unfunded liabilities, the fiscal condition of the US has come into question and foreign interest in US Treasuries has declined. In late March, it was reported that the 10-year US Treasury Note yield had risen 30 basis points and that foreign holders of 10-year Notes were selling in record numbers.<O></O><O
></O><TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>
<?XML:NAMESPACE PREFIX = V /><V:SHAPETYPE id=_x0000_t75 path="m@4@5l@4@11@9@11@9@5xe" o:spt="75" oreferrelative="t" filled="f" coordsize="21600,21600" stroked="f"><V:STROKE joinstyle="miter"></V:STROKE><V:FORMULAS><V:F eqn="if lineDrawn pixelLineWidth 0"></V:F><V:F eqn="sum @0 1 0"></V:F><V:F eqn="sum 0 0 @1"></V:F><V:F eqn="prod @2 1 2"></V:F><V:F eqn="prod @3 21600 pixelWidth"></V:F><V:F eqn="prod @3 21600 pixelHeight"></V:F><V:F eqn="sum @0 0 1"></V:F><V:F eqn="prod @6 1 2"></V:F><V:F eqn="prod @7 21600 pixelWidth"></V:F><V:F eqn="sum @8 21600 0"></V:F><V:F eqn="prod @7 21600 pixelHeight"></V:F><V:F eqn="sum @10 21600 0"></V:F></V:FORMULAS><VATH o:extrusionok="f" gradientshapeok="t" o:connecttype="rect"></VATH><O:LOCK v:ext="edit" aspectratio="t"></O:LOCK></V:SHAPETYPE><O></O>
</TD></TR></TBODY></TABLE>referrelative="t" filled="f" coordsize="21600,21600" stroked="f"><V:STROKE joinstyle="miter"></V:STROKE><V:FORMULAS><V:F eqn="if lineDrawn pixelLineWidth 0"></V:F><V:F eqn="sum @0 1 0"></V:F><V:F eqn="sum 0 0 @1"></V:F><V:F eqn="prod @2 1 2"></V:F><V:F eqn="prod @3 21600 pixelWidth"></V:F><V:F eqn="prod @3 21600 pixelHeight"></V:F><V:F eqn="sum @0 0 1"></V:F><V:F eqn="prod @6 1 2"></V:F><V:F eqn="prod @7 21600 pixelWidth"></V:F><V:F eqn="sum @8 21600 0"></V:F><V:F eqn="prod @7 21600 pixelHeight"></V:F><V:F eqn="sum @10 21600 0"></V:F></V:FORMULAS><VATH o:extrusionok="f" gradientshapeok="t" o:connecttype="rect"></VATH><O:LOCK v:ext="edit" aspectratio="t"></O:LOCK></V:SHAPETYPE><O></O>
Chart courtesy of StockCharts.com<O></O>
></O>
></O>Reports of US Treasury auction distress first appeared in December of 2009 when an article by Eric Sprott and David Franklin entitled ?Is it All Just a Ponzi Scheme?? questioned the ?Other Investors? reported by the US Federal Reserve. The unidentified investors held $359.1 billion worth of US Treasuries in the forth quarter of 2008 but $880.5 billion by the end of the third quarter 2009, an increase of $521.4 billion. Based on the Federal Reserve Flow of Funds Report, Messrs. Sprott and Franklin found the increase attributable to the ?Household Sector?, which is defined in the Federal Reserve?s Flow of Funds Guide as ??amounts held or owed by the other sectors ? subtracted from known totals ? [such that] the remainders are assumed to be the amounts held or owed by the household sector.? Thus, the ?Household Sector? is strictly an artifact of accounting practices, and, as a result, there has been some speculation regarding the parties responsible for $521.4 billion in 2009 US Treasury purchases.<O
></O><O
></O>A recent analysis of 4-week Treasury auction results by OmniSans Investment Research suggested that US Treasury auctions are more distressed than has been generally recognized, and a similar analysis appeared on the popular Zero Hedge website.<O
></O><O
></O><TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>
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<O
></O>The OmniSans and Zero Hedge articles focus on the percent of Treasury auction purchases made by the Federal Reserve?s own primary dealers, as compared with other bidders, and on the percentage of indirect (foreign) bids accepted. In particular, the acceptance of 100% of foreign bids suggests extremely weak foreign demand. While the evidence is accurate, the conclusion is less clear since the changing pattern of US Treasury auction results is more complex.<O
></O><O
></O>Federal Reserve measures designed to increase financial market liquidity and to recapitalize the banking system, such as the Term Asset-Backed Securities Loan Facility (TALF), represent monetary inflation (or re-inflation), and some of this currency has certainly found its way into the coffers of the US Treasury, i.e., a rise in primary dealer purchases. A rise in primary dealer purchases could also be a result of the low cost of borrowing from the Federal Reserve. In theory, primary dealers can generate profits simply by borrowing from the Federal Reserve at near zero percent interest rates and buying Treasuries with higher yields. Of course, primary dealer purchases funded by borrowing from the Federal Reserve would be tantamount to debt monetization.<O
></O><O
></O>An increase in primary dealer purchases, or in purchases by direct bidders, could compensate for a decline in foreign purchases of US Treasuries but would not explain it. To be significant, a decline in foreign purchases would have to be evident in more than one type of Treasury, i.e., outside of the reported 1.0 bid to cover ratio for indirect bidders in recent 4-week Treasury Bill auctions.<O
></O><O
></O>What may be an emerging pattern of falling foreign demand and rising primary dealer purchases, both of which have been moderated by an increase in purchases made by direct bidders (financial institutions that place bids directly with the US Treasury, such as domestic depository institutions and mutual funds) is evident in 4-week Treasury Bill auction results.<O
></O><O
></O><TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>
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<O
></O>Direct Federal Reserve purchases of US Treasuries (monetization) have been distributed over Treasuries of different types and maturities and have been generally implemented as a consistent, low-level of buying for particular Bills, Notes or Bonds. Overall, the Federal Reserve increased its holdings of US Treasuries by $286 billion in 2009, an increase of more than 60% as of September 2009 compared to 2008, and, as of March 2010, the Federal Reserve?s holdings of US Treasuries had increased another $14 billion to roughly $777 billion.<O
></O><O
></O>What is important is that monetization has been most significant in 4-week Treasury Bills, reaching 38.59% of total 4-week Treasury Bill sales on January 26, 2010, but similar spikes in Federal Reserve purchases do not appear in auction results for other types of Treasuries. Thus, it should come as no surprise that 4-week Treasury Bills have fallen out of favor with foreign investors.<O
></O><O
></O>Of course, the amount of currency created by monetization in a particular auction, regardless of the percent of Treasuries purchased by the Federal Reserve, represents only a small fraction of the monetary base. Nonetheless, there is not only a psychological dimension but also aggregate effects on the balance sheet of the Federal Reserve, on the US dollar and, ultimately, on the viability of US Treasury auctions.<O
></O><O
></O>A general pattern of decreased indirect bidder participation offset by rising direct bidder participation, setting aside any increase in primary dealer purchases, is evident outside of 4-week Treasury Bill auctions.<O
></O><O
></O><TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>
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<O
></O>Foreign demand for 30-year Treasury Bonds has fallen over the past year, suggesting that foreign purchases may have shifted towards the short end of the maturity continuum. The more significant fact, however, is the marked increase in direct bidder purchasing, which has more than compensated for slack foreign demand at the extreme long end of the spectrum leaving primary dealer purchases flat.<O
></O><O
></O>Given the increase in direct bidder purchases, and reflecting on the questions raised by Messrs. Sprott and Franklin, it seems likely that the $521.4 billion worth of US Treasuries in 2009 reflects otherwise unclassified direct bidders, i.e., direct bidders other than recognized domestic investment funds and depository institutions. Unfortunately, the identities of the bidders remain unknown in any case.<O
></O><O
></O>The most dramatic example of primary dealer purchases replacing indirect (foreign) bidders is in Cash Management Bills, but these represent a rolling debt of perhaps $100 billion analogous to the corporate bond market and are not representative of other types of Treasuries.<O
></O><O
></O><TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>
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<O
></O>While there are apparent signs of Treasury auction distress, based on a survey of Treasury auction data from January 2009 to March 2010, there is no indication of an immanent auction failure so long as the primary dealers and direct bidders continue to step into the breach. Further, the same patterns either do not appear or are much less pronounced in longer-term Treasury Note sales.<O
></O><O
></O><TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>
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<O
></O>
It seems unlikely that direct bidders within the US can compensate indefinitely, or to an unlimited extent, for falling foreign demand. Commenting on the ambitious spending plans of the US federal government, Zhu Min, Deputy Governor of the People's Bank of China said in December 2009 that "the world does not have so much money to buy more US Treasuries."<O></O><O
></O>It would certainly be unreasonable for the US federal government and Federal Reserve to assume that ambitious deficit spending and ongoing quantitative easing (QE) would have no cumulative impact on US Treasury auctions. If there is a limit to foreign appetite for US debt, to foreign capacity to lend to the US, or to international tolerance for US dollar devaluation, the US government and Federal Reserve seem determined to find it.<O
></O><O
></O><TABLE class=MsoNormalTable style="BORDER-COLLAPSE: collapse; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 480" cellSpacing=0 cellPadding=0 border=0><TBODY><TR style="PAGE-BREAK-INSIDE: avoid; mso-yfti-irow: 0; mso-yfti-firstrow: yes; mso-yfti-lastrow: yes"><TD style="BORDER-RIGHT: #ece9d8; PADDING-RIGHT: 5.4pt; BORDER-TOP: #ece9d8; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; BORDER-LEFT: #ece9d8; PADDING-TOP: 0in; BORDER-BOTTOM: #ece9d8; BACKGROUND-COLOR: transparent" vAlign=top>
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<O
></O>China's foreign exchange reserves, valued at $2,399.2 billion at the end of December 2009 (not including gold), include only $894.8 billion in US Treasury bonds. In contrast, the US must issue or roll over $702 billion in debt in 2010 and a total of $2.55 trillion in Treasuries to be issued this year, while $3.7 trillion in US Treasuries are held abroad.<O
></O><O
></O>
While US GDP was at $14.46 trillion in 2009 (with debt levels set to rise to 90% of GDP by 2020), China?s GDP is currently estimated as $8.791 trillion. Although there are signs of recovery in Chinese exports, the entire value of China's reserves, assuming that its current Treasury holdings could be liquidated, is insufficient to finance US federal government debt in 2010.<O></O><O
></O>Since China recently liquidated $34 billion in US Treasuries, the statement of China?s Director of the State Administration of Foreign Exchange, Yi Gang, ?[China is] a responsible investor and in the process of these investments we can definitely achieve a mutually beneficial result" seems obligatory. In reality, the US is currently the largest debtor nation in the history of the world, while China is the US? largest creditor, and neither China nor any other country is in a position to bail out the US should US Treasury auctions run aground. Nonetheless, an overt Treasury auction failure seems impossible with the Federal Reserve as the lender of last resort to domestic depository institutions and to its own primary dealers. Unfortunately, direct monetary inflation is not without consequences. Specifically, increased debt monetization would impact the value of the US dollar and could spark high inflation, i.e., rising US dollar prices for imported goods and energy, or an eventual hyperinflationary collapse of the US dollar.<O
></O><O
></O>Without a robust economic recovery in the US, it seems unlikely that the apparent distress of US Treasury auctions will abate. Among other things, the gap between increasing US federal government spending and falling federal tax receipts is currently growing. A continuation of current US federal government and Federal Reserve policies under deteriorating economic conditions suggests levels of debt that could not be absorbed by US creditors, and a so-called double-dip recession would put extreme pressure on the US dollar. Indicators of Treasury auction distress include:<O
></O><O
></O>- <LI class=MsoNormal style="MARGIN: 0in 0in 0pt; tab-stops: list .5in; mso-list: l0 level1 lfo7">Rising Treasury yields, regardless of interest rates, signaling inadequate demand.<O></O> <LI class=MsoNormal style="MARGIN: 0in 0in 0pt; tab-stops: list .5in; mso-list: l0 level1 lfo7">A continued decline in foreign bids, thus a higher percentage of accepted bids, particularly in additional types of Treasuries, outside of 4-week Treasury Bills.<O></O> <LI class=MsoNormal style="MARGIN: 0in 0in 0pt; tab-stops: list .5in; mso-list: l0 level1 lfo7">Direct bids failing to rise at a rate sufficient to offset falling indirect bidder demand, thus causing either primary dealer purchases or monetization to rise.<O></O> <LI class=MsoNormal style="MARGIN: 0in 0in 0pt; tab-stops: list .5in; mso-list: l0 level1 lfo7">A marked and sustained increase in primary dealer purchases versus direct or indirect bidders.<O></O> <LI class=MsoNormal style="MARGIN: 0in 0in 0pt; tab-stops: list .5in; mso-list: l0 level1 lfo7">Additional spikes in Federal Reserve purchases (monetization) in any type of Treasury, or a sustained increase in Federal Reserve Treasury purchases generally.<O></O>
- An expansion of the incipient shift away from the long end of the maturity continuum towards shorter-term Treasuries.<O></O>
></O>###<O></O>
></O><O
></O>About Hera Research<O
></O>Hera Research, LLC, provides deeply researched analysis to help investors profit from changing economic and market conditions. Hera Research focuses on relationships between macroeconomics, government, banking, and financial markets in order to identify and analyze investment opportunities with extraordinary upside potential. Hera Research is currently researching mining and metals including precious metals, oil and energy including green energy, agriculture, and other natural resources. The Hera Research Monthly newsletter covers key economic data, trends and analysis including reviews of companies with extraordinary value and upside potential.<O
></O><O
></O>[/FONT]
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Re: U.S DEBT CLOCK....
I don't care about idiotic ideologies....the path we're currently on is completely unsustainable and, as brucefan says, destined for collapse.
I don't care about idiotic ideologies....the path we're currently on is completely unsustainable and, as brucefan says, destined for collapse.
Re: U.S DEBT CLOCK....
CBO chief says debt 'unsustainable'
'By JONATHAN ALLEN | 4/8/10 12:12 PM EDT <dl class="story-image"><dt>
</dt><dd>The problem 'cannot be solved through minor tinkering,' the head of the Congressional Budget Office said Thursday morning. <cite> AP
</cite></dd></dl>The nation?s fiscal path is ?unsustainable,? and the problem ?cannot be solved through minor tinkering,? the head of the Congressional Budget Office said Thursday morning.
Doug Elmendorf, best known for arbitrating the costs of various health care proposals, added his voice to a growing chorus of economic experts who predict dire consequences if political leaders don?t scale back spending, increase taxes or both ? and soon.
Elmendorf noted a recent CBO report that pegged an increase in the public debt from $7.5 trillion at the end of 2009 to $20.3 trillion at the end of 2020 if President Barack Obama?s fiscal 2011 budget were to be implemented as written. As a percentage of gross domestic product, the debt would rise from 53 percent to 90 percent, CBO forecasted. The last time the percentage was that high was right after World War II.
Elmendorf?s remarks to reporters at a breakfast sponsored by the Christian Science Monitor echo the recent sentiments of a pair of Federal Reserve chiefs ? the current head, Ben Bernanke, and former Chairman Paul Volcker.
Volcker said earlier this week that the U.S. should consider adopting a value-added tax, an idea he described as being less toxic than it has been in the past.
?If at the end of the day we need to raise taxes, we should raise taxes,? Volcker said.
On Wednesday, Bernanke said in a speech in Dallas that the government must cut entitlements or raise taxes.
?These choices are difficult, and it always seems easier to put them off ? until the day they cannot be put off anymore,? Bernanke said.
There?s little apparent political appetite to do either.
While the president created a fiscal reform commission earlier this year, his budget calls for an extension of most of President George W. Bush?s 2001 and 2003 tax cuts and no major restructuring of the popular entitlement programs that constitute the lion?s share of the federal budget.
Elmendorf also defended his agency?s role in the health care debate, saying the back and forth between CBO and members of Congress over scoring different policy proposals is typical fare.
?I don?t think we were gamed,? Elmendorf said, describing the process on the health care law as ?very similar? to that of other major pieces of legislation.
?I?m very comfortable with the numbers we released,? he said.
Read more: http://www.politico.com/news/stories/0410/35546.html#ixzz0kZzrWb5T
CBO chief says debt 'unsustainable'
'By JONATHAN ALLEN | 4/8/10 12:12 PM EDT <dl class="story-image"><dt>
</dt><dd>The problem 'cannot be solved through minor tinkering,' the head of the Congressional Budget Office said Thursday morning. <cite> AP </cite></dd></dl>The nation?s fiscal path is ?unsustainable,? and the problem ?cannot be solved through minor tinkering,? the head of the Congressional Budget Office said Thursday morning.
Doug Elmendorf, best known for arbitrating the costs of various health care proposals, added his voice to a growing chorus of economic experts who predict dire consequences if political leaders don?t scale back spending, increase taxes or both ? and soon.
Elmendorf noted a recent CBO report that pegged an increase in the public debt from $7.5 trillion at the end of 2009 to $20.3 trillion at the end of 2020 if President Barack Obama?s fiscal 2011 budget were to be implemented as written. As a percentage of gross domestic product, the debt would rise from 53 percent to 90 percent, CBO forecasted. The last time the percentage was that high was right after World War II.
Elmendorf?s remarks to reporters at a breakfast sponsored by the Christian Science Monitor echo the recent sentiments of a pair of Federal Reserve chiefs ? the current head, Ben Bernanke, and former Chairman Paul Volcker.
Volcker said earlier this week that the U.S. should consider adopting a value-added tax, an idea he described as being less toxic than it has been in the past.
?If at the end of the day we need to raise taxes, we should raise taxes,? Volcker said.
On Wednesday, Bernanke said in a speech in Dallas that the government must cut entitlements or raise taxes.
?These choices are difficult, and it always seems easier to put them off ? until the day they cannot be put off anymore,? Bernanke said.
There?s little apparent political appetite to do either.
While the president created a fiscal reform commission earlier this year, his budget calls for an extension of most of President George W. Bush?s 2001 and 2003 tax cuts and no major restructuring of the popular entitlement programs that constitute the lion?s share of the federal budget.
Elmendorf also defended his agency?s role in the health care debate, saying the back and forth between CBO and members of Congress over scoring different policy proposals is typical fare.
?I don?t think we were gamed,? Elmendorf said, describing the process on the health care law as ?very similar? to that of other major pieces of legislation.
?I?m very comfortable with the numbers we released,? he said.
Read more: http://www.politico.com/news/stories/0410/35546.html#ixzz0kZzrWb5T