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Thread: Harder to buy US Treasuries

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    Harder to buy US Treasuries

    Shanghai Daily | ???? -- English Window to China News

    Looks like Obama is getting wish right before Christmas. His dumb ass policies have squandered billions of dollars on foolish utterly stupid programs and he can blame it all on Bush. Never mind that what the money wasted on was done by the DIMS (no spell error) on Obama's watch.

    I have warned from the beginning he was out to destroy the economy and he's almost there.
    The Dims vote to raise the debt ceiling and the Chinese say so sorry no more money to save you with.

    The only thing worse than this is there are so many empty Obama worshipers out there who will believe the next set of lies nothing is going to happen to stop this before it's way too late to save us.

    Harder to buy US Treasuries
    Created: 2009-12-18 0:13:35
    Author:Zhou Xin and Jason Subler



    IT is getting harder for governments to buy United States Treasuries because the US's shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.

    The comments by Zhu Min, deputy governor of the People's Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds.

    Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.

    China's State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments.

    In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.

    He then addressed where demand for that debt would come from.

    "The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu said, according to an audio recording of his remarks. "Double the holdings? It is definitely impossible."

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    Re: Harder to buy US Treasuries

    Wait...are you saying it's a bad thing that the US-China current account deficit is shrinking?

    US treasuries are incredibly bubbly right now. I would strongly encourage everyone to steer clear of them for a few years, and get out now if you're already invested in them.
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    Re: Harder to buy US Treasuries

    If it's shrinking it's Obama's fault, if it's expanding it's Bush's fault. Check.
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
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    Re: Harder to buy US Treasuries

    The delusion that one man, the President, can affect the entire economy so deeply, is a persistent one.

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    Re: Harder to buy US Treasuries

    Quote Originally Posted by American View Post
    If it's shrinking it's Obama's fault, if it's expanding it's Bush's fault. Check.
    Current account balance is shrinking due to less consumption in the U.S, due to the recession.

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    Re: Harder to buy US Treasuries

    Um...

    I'm not sure quite what to say. Foreign governments will continue to purchase securities to prop up the value of their reserves. Decreasing the availability of dollars at the same time will cause the value of the dollar to rise. And it is highly unlikely that the Chinese will go cold turkey. And even if the Chinese stopped and sold off that only represents somewhere between 5 and 7% of total debt. Not exactly enough to cause panic.
    "If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu

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    Re: Harder to buy US Treasuries

    First the 2.3 trillion that the Chinese hold is a lot more than 5-7% of our debt.

    There are enough dollars out there so we don't have to worry about a shortage of supply, nor is there a surge in demand.

    For now Foreign governments will continue to buy our debt. The real question is will this continue forever. Maybe the bigger question is what interest rate will they demand.

    If the interest on our debt goes up by 1% that will cost us about 120 billion at today's level of debt.

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    Re: Harder to buy US Treasuries

    1. zhu min speaks the obvious

    2. but that he SAYS it is quite revealing

    3. and the timing

    4. coincidental with the passage of health care, dependent for deficit control on its half T cuts to m and m that aint never gonna happen, the comments of the people's bank manager are yet another chinese bitch slapping of our clueless commander in chief

    5. it is NOT in the interests of the people's people to be TALKING DOWN treasuries

    6. yet there he is

    7. hu has humiliated obama on the climate, on ruling out sanctions against iran

    8. and now THIS

    9. hu whispered in obama's big ears during that disastrous asia trip NOT to do this

    10. but the oblivious one just went right ahead

    11. he's in BIG TROUBLE now

    12. with his BOSS

    13. the DEBT CEILING has been scaled lower

    14. which only means pelosi and reid are gonna have to roof repair again in 2 months

    15. obama's suddenly talking like a deficit hawk

    16. LOL!

    17. how DUMB does he think are the american people?

    18. who's DUMB

    19. zhu: "the united states cannot force foreign govt's..."

    20. unlike consumers of insurance who are suddenly required to buy up else face fines, criminalization and jail

    21. obama's agenda is expired

    22. more like, repossessed
    Last edited by The Prof; 12-21-09 at 02:13 PM.

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    Re: Harder to buy US Treasuries

    Anyone who thinks they will keep buying our debt is in for one hell of a surprise.

    now THAT is an OPINION trolls!

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    Re: Harder to buy US Treasuries

    Quote Originally Posted by ConservaBill View Post
    Anyone who thinks they will keep buying our debt is in for one hell of a surprise.

    now THAT is an OPINION trolls!
    The question is not if but when.....
    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
    "Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911

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