What will the Bond Vigilantes do? They’re coming to get America because of the DEBT!!!! BE AFRAID!!!!
Ron Paul: Profoundly wrong all the time… The yield on treasuries goes negative!
(Reuters) – The U.S. government may ask investors to pay for the privilege and safety of holding short-term debt issued by its Treasury Department.
In response to clamor from investors, the Treasury said on Wednesday it was looking closely at allowing negative-yield auctions. This would mean bidders who want the security of U.S. government debt in the face of global insecurity, might have to pay a premium for it.
Doing so would allow the U.S. government to benefit from something that is already occurring on the secondary market, where investors have accepted negative yields in recent months to protect their cash from financial strains.
Remarkably, Wall Street is asking to be able to pay a premium for U.S. debt even after the United States lost its prized AAA rating last year and as the government heads for a fourth straight year with $1 trillion-plus budget deficit.
Investors would have to pay America to park their money in T-Bills. So much for the power of the debt & deficit idiots.
Wow! If you knew anything about economics, you would not believe that what is occurring now with treasury securities will sustain as more and more debt in thrown onto us by the Obama administration.
Wow, that’s some powerful stupid you’ve got there…
The US is getting paid to hold people’s money. Investors are giving money to the treasury for a safe haven investment. The markets can’t get enough of our debt. They love our debt. They want our debt.
That means that the markets don’t give a shit about the debt or the deficit in America.
Read what I wrote again. I pointed out that they may love our debt now, but with more debt being piled on ever day, this love will end. Explain to your grandchildren someday what happened to America and your part in destroying their future.
Hey guys,
Since a large portion of the debt is actually owned by Federal government Agencies, banks, insurance companies and mutual funds, I don’t think we have a problem. We all own it.
You beat me to the answer. A very small percentage of the debt is held overseas. Most of it is money we owe ourselves.
Great! Thanks for reminding me that I owe a portion of the debt. I will sleep like a baby tonight.
The debt is huge and growing swiftly. The real problem is when, not if we are no longer the world reserve currency. Japan, Russia, China and Brazil are all pushing for a larger percentage of their monies in the current ‘basket of currencies’and a reduced roll for the dollar.Russia and China began trading oil in each others currencies last year. When this happens we will no longer enjoy such low interest rates. In 2011, we paid $454 billion in interest and that’s with fed rates at .025%, imagine the payment in a 5% world. It is what Senator Tom Coburn writes about in ‘The Debt Bomb’…we ignore the debt at our peril…
Tom Coburn knows as little about economics as he does about governing. How do you explain the low interest rates in Japan despite a much higher debt-to-GDP ratio and a non-reserve currency?