Article

2009-12-20 China-Japan-Koreas

"The world does not have so much money to buy more US Treasuries."

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Posted by tipper 2009-12-20 04:36|| || Front Page|| [3 views ] Top

#1 Yeah, well we know the world is financially screwed, what else is new. Don't buy the bonds, treasuries and financial instruments and you will kill the ONEs programs. You would not do that to a fellow "Progressive" would you ?

Posted by Ebbineng Untervehr1947 2009-12-20 06:57|| 2009-12-20 06:57|| Front Page Top

#2 That's ok - We'll just print more. After all -- we still have checks left!

Posted by CrazyFool 2009-12-20 08:36|| 2009-12-20 08:36|| Front Page Top

#3 If you owe the bank $100,000, you have a problem; if you owe $2.3 trillion the bank has a problem.

Posted by Glenmore 2009-12-20 08:51|| 2009-12-20 08:51|| Front Page Top

#4 That's ok - We'll just print more. After all -- we still have checks left!

That's what the Treasury has been doing when it can't sell bonds, it in turn buys them with more printed money. The bonds mitigate the debt over a number of years [hoping inflation will eat some of it] whereas the purchase makes the debt and debasement of the currency immediate.

Posted by Procopius2k 2009-12-20 09:13|| 2009-12-20 09:13|| Front Page Top

#5 "The world does not have so much money to buy more US Treasuries."

I think he is saying China's surplus has peaked and is now falling.

International currency flows are always automatically in balance. There is always enough USD outside the USA to buy treasuries to fund the trade deficit.* Although not of course the budget deficit.

* Excepting hoarding of USD by drug cartels etc.

Posted by phil_b 2009-12-20 10:30|| 2009-12-20 10:30|| Front Page Top

#6 Hi phil_b,

Apologies for my being so dense, but could you please expound on your words, "International currency flows are always automatically in balance. There is always enough USD outside the USA to buy treasuries to fund the trade deficit.* Although not of course the budget deficit". Not being an economist, I'd just like to understand the nuance of your words.
Thank you, Sir.

Posted by Asymmetrical Triangulation 2009-12-20 21:07|| 2009-12-20 21:07|| Front Page Top

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