Page 1 of 13 12311 ... LastLast
Results 1 to 10 of 124

Thread: Foreign demand falls for Treasuries

  1. #1
    Banned
    Join Date
    Nov 2009
    Location
    melbourne florida
    Last Seen
    09-24-15 @ 12:15 AM
    Gender
    Lean
    Very Conservative
    Posts
    13,156

    Foreign demand falls for Treasuries

    China is selling our debt what will this do to our economy? Obama's out of control spending may need to stop.


    FT.com / US / Economy & Fed - Foreign demand falls for Treasuries


    Foreign demand for US Treasury securities fell by a record amount in December as China purged some of its holdings of government debt, the US Treasury department said on Tuesday.

    China sold $34.2bn in US Treasury securities during the month, the US Treasury said on Tuesday, leaving Japan as the biggest holder of US government debt with $768.8bn. China overtook Japan as the largest holder in September 2008.

    The shift in demand comes as countries retreat from the “flight to safety” strategy they embarked on upon during the worst of the global economic crisis and could mean the US will have to pay more to service its debt interest.

    For China, the shedding of US debt marks a reversal that it signalled last year when it said it would begin to reduce some of its holdings. Any changes in its behaviour are politically sensitive because it is the biggest US trade partner and has helped to finance US deficits.
    Last edited by ptif219; 02-18-10 at 01:11 AM.

  2. #2
    Sage
    Hatuey's Avatar
    Join Date
    Oct 2006
    Last Seen
    Today @ 07:30 PM
    Gender
    Lean
    Moderate
    Posts
    42,039

    Re: Foreign demand falls for Treasuries

    Quote Originally Posted by ptif219 View Post
    China is selling our debt what will this do to our economy? Obama's out of control spending may need to stop.
    Kind of funny how our debt has been growing steadily for 30 years but only now it is "Obama's" out of control spending. I wonder what it was called when Reagan was doing it.

    I refuse to accept the view that mankind is so tragically bound to the starless midnight of racism and war that the bright daybreak of peace and brotherhood can never become a reality. - MLK

  3. #3
    Banned
    Join Date
    Nov 2009
    Location
    melbourne florida
    Last Seen
    09-24-15 @ 12:15 AM
    Gender
    Lean
    Very Conservative
    Posts
    13,156

    Re: Foreign demand falls for Treasuries

    Quote Originally Posted by Hatuey View Post
    Kind of funny how our debt has been growing steadily for 30 years but only now it is "Obama's" out of control spending. I wonder what it was called when Reagan was doing it.

    Funny how you go off topic on the first post.

    Tripling what Bush did in 8 years in one year is the largest increase by a first year president.

    Now how about addressing the questions in the OP.

  4. #4
    Sage
    Hatuey's Avatar
    Join Date
    Oct 2006
    Last Seen
    Today @ 07:30 PM
    Gender
    Lean
    Moderate
    Posts
    42,039

    Re: Foreign demand falls for Treasuries

    Quote Originally Posted by ptif219 View Post
    Funny how you go off topic on the first post.
    You commented on Obama's "out of control spending". I pointed out you're a partisan hack who doesn't care about how the money is being spent unless there is a Democrat is in power.

    Tripling what Bush did in 8 years in one year is the largest increase by a first year president.
    So it was okay when Bush was doing it. Not okay when Obama does it. Your selective outrage is quite obvious.

    Now how about addressing the questions in the OP.
    There are no questions in your OP. Just silly rhetoric.
    I refuse to accept the view that mankind is so tragically bound to the starless midnight of racism and war that the bright daybreak of peace and brotherhood can never become a reality. - MLK

  5. #5
    Professor

    Join Date
    Oct 2009
    Location
    North Dakota
    Last Seen
    09-02-17 @ 08:22 PM
    Gender
    Lean
    Conservative
    Posts
    2,357

    Re: Foreign demand falls for Treasuries

    China has been keeping its currency artificially low (about 6.8 yaun per dollar).

    The dollar recently rallied recently due to the economic events in europe, so this may be an act by the chinese to maintain its pegged position on the dollar. I am not certain though.

  6. #6
    Disappointed Evolutionist
    Catawba's Avatar
    Join Date
    Jun 2009
    Last Seen
    05-28-13 @ 08:15 PM
    Gender
    Lean
    Liberal
    Posts
    27,254

    Re: Foreign demand falls for Treasuries

    Quote Originally Posted by Hatuey View Post
    Kind of funny how our debt has been growing steadily for 30 years but only now it is "Obama's" out of control spending. I wonder what it was called when Reagan was doing it.

    The graph is striking to see how the debt grew after the unfunded tax cuts to the wealthy coupled with increased military spending under Reagan And W.

    The only time we leveled off the debt after Reagan was when we raised the taxes a bit on the wealthy and reduced military spending.

    If we are truly concerned about reducing the debt, we need to do the same thing today.
    Treat the earth well: it was not given to you by your parents, it was loaned to you by your children. We do not inherit the Earth from our Ancestors, we borrow it from our Children. ~ Ancient American Indian Proverb

  7. #7
    Sage

    Join Date
    Oct 2007
    Location
    New York
    Last Seen
    Today @ 12:40 PM
    Gender
    Lean
    Centrist
    Posts
    11,691

    Re: Foreign demand falls for Treasuries

    Quote Originally Posted by Catawba View Post
    The graph is striking to see how the debt grew after the unfunded tax cuts to the wealthy coupled with increased military spending under Reagan And W.

    The only time we leveled off the debt after Reagan was when we raised the taxes a bit on the wealthy and reduced military spending.

    If we are truly concerned about reducing the debt, we need to do the same thing today.
    The U.S. fiscal position is beyond the point where a few tweaks can fix things. Everything needs to be on the table. Entitlement programs, particularly Medicare, need to be reformed to make them fiscally sustainable. The tax structure needs to be changed so as to provide sufficient revenue to meet the nation's priorities. All discretionary programs need to be reviewed and every department needs to improve its productivity to do more with each dollar expended. No department should be exempt. Regular independent audits of the major departments should be undertaken to verify that they are achieving productivity gains, have adequate systems for measuring their financial performance relative to their departmental objectives, etc.

    Sadly, at this stage of the game, the implied political consensus is to do nothing substantive. On one end, political leaders want to treat certain mandatory spending and discretionary programs as almost sacred cows exempt from serious changes. On the other, some want to leave in place a tax structure that chronically provides inadequate revenue, even wanting to cut revenue further. Relying on foreigners to essentially finance a growing share of the nation's costs--from national security to health care--is not sustainable indefinitely.
    Last edited by donsutherland1; 02-18-10 at 08:34 AM.

  8. #8
    Sage
    PeteEU's Avatar
    Join Date
    Mar 2006
    Location
    Denmark
    Last Seen
    Today @ 06:12 PM
    Gender
    Lean
    Centrist
    Posts
    29,090

    Re: Foreign demand falls for Treasuries

    Quote Originally Posted by ptif219 View Post
    Funny how you go off topic on the first post.

    Tripling what Bush did in 8 years in one year is the largest increase by a first year president.

    Now how about addressing the questions in the OP.
    That is an out right lie. Obama has not trippled the Bush debt increase in his first year in office... far far far far far from it.
    PeteEU

  9. #9
    Sage
    samsmart's Avatar
    Join Date
    Dec 2009
    Last Seen
    @
    Gender
    Lean
    Other
    Posts
    10,316
    Blog Entries
    37

    Re: Foreign demand falls for Treasuries

    Quote Originally Posted by donsutherland1 View Post
    The U.S. fiscal position is beyond the point where a few tweaks can fix things. Everything needs to be on the table. Entitlement programs, particularly Medicare, need to be reformed to make them fiscally sustainable. The tax structure needs to be changed so as to provide sufficient revenue to meet the nation's priorities. All discretionary programs need to be reviewed and every department needs to improve its productivity to do more with each dollar expended. No department should be exempt. Regular independent audits of the major departments should be undertaken to verify that they are achieving productivity gains, have adequate systems for measuring their financial performance relative to their departmental objectives, etc.

    Sadly, at this stage of the game, the implied political consensus is to do nothing substantive. On one end, political leaders want to treat certain mandatory spending and discretionary programs as almost sacred cows exempt from serious changes. On the other, some want to leave in place a tax structure that chronically provides inadequate revenue, even wanting to cut revenue further. Relying on foreigners to essentially finance a growing share of the nation's costs--from national security to health care--is not sustainable indefinitely.
    Getting out of Iraq and Afghanistan would go a long way towards that.

  10. #10
    I'm not-low all the time
    Kushinator's Avatar
    Join Date
    Jan 2006
    Location
    West Loop
    Last Seen
    Today @ 08:19 PM
    Gender
    Lean
    Independent
    Posts
    16,254

    Re: Foreign demand falls for Treasuries

    Quote Originally Posted by drz-400 View Post
    China has been keeping its currency artificially low (about 6.8 yaun per dollar).

    The dollar recently rallied recently due to the economic events in europe, so this may be an act by the chinese to maintain its pegged position on the dollar. I am not certain though.
    When wealth increases, for the most part, savings decreases. The national wealth of China has increased quite a bit, and we are safe to refer to their foreign reserves as national savings.
    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

Page 1 of 13 12311 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •