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2008-11-25 Home Front Economy

Back to the Future: Bloomberg sez US Needs Obama Bonds

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Posted by phil_b 2008-11-25 00:41|| || Front Page|| [3 views ] Top

#1 See RIAN > RUSSIAN ANALYST PREDICTS THE DECLINE AND BREAKUP OF THE USA/US ALREADY IN THROES OF COLLAPSE [Prof.Igor Penarin]. May destabilize and break up into SIX SECTIONS.

Posted by JosephMendiola 2008-11-25 01:38|| 2008-11-25 01:38|| Front Page Top

#2 With this blatant and apparently unstoppable raid of our Federal treasury, perhaps we are in collapse. Six sections sounds about right: East Coast, West Coast, Chicago Lake area, Old South, Northern Midwest, Southern Midwest ???

The experiment probably lasted longer than they expected. Let us just hope that somehow, someway, it lives on.

Posted by Shalet and Tenille1168 2008-11-25 04:49|| 2008-11-25 04:49|| Front Page Top

#3 Joe, you are pissing me off. Why can't you post the damn link? I can't find the article there (highlight, press ctrl+c and then ctrl+v. Copy and paste, that is all to it. Please.

Posted by Spike Uniter 2008-11-25 05:36|| 2008-11-25 05:36|| Front Page Top

#4 It just keep getting jacked up higher. Buy Obama Bonds because America is too important to the world economy to allow it to fail. Heh.

Posted by Procopius2k 2008-11-25 09:42|| 2008-11-25 09:42|| Front Page Top

#5 This is fairly ominous. Japan has already stopped buying Treasuries. If China does so, the House of Cards may collapse. In order to obtain capital, interest rates on T-Bills will mandatorily rise. This scheme may work for a while...10-20 years. When debt service rises beyond 1/3 of GDP, look for US to stop servicing debt payments. Then, all hell will break loose. Or, alternatively, taxes on US citizens will rise to prohibitive levels...maybe 60% total, including, federal, state taxes, fees, fees, and more fees...of annual earnings. This madness is not sustainable. The only way to grow beyond it is to impose substanial tariffs on imported goods, returning most jobs to US domain. This, too, would create havoc in the rest of the world, and no doubt, lead to serious conflicts. Probably the best path for US citizens.

Posted by Woozle Elmeter 2700 2008-11-25 09:49|| 2008-11-25 09:49|| Front Page Top

#6 I've played that game.

How 'bout Nerobama coins.

Posted by swksvolFF 2008-11-25 10:52|| 2008-11-25 10:52|| Front Page Top

#7 No no no. There is NOT 700 billion or 7 trillion of bad mortgage loans out there. There IS some multiple of 100 billion of BAD PAPER out there. Some people bought the wrong paper. It's the government working now to make those people whole on the backs of the American taxpayer. That's the crisis.

Posted by M. Murcek">M. Murcek 2008-11-25 11:09|| 2008-11-25 11:09|| Front Page Top

#8 The only way to grow beyond it is to impose substanial tariffs on imported goods, returning most jobs to US domain.

That worked well with Smoot-Hawley. /sarcasm off

Anyone else notice that the unemployment has also moved with the jobs. The economy has been and is cyclic and a significant down turn has been due. Usually assisted by stupid leverage tricks and both government interference in the basic market and failure to enforce regulations established from lessons learned from previous experience. The low level jobs may have been contracted out [either across borders or illegally imported] but the unemployment that hits with the vagaries of the economy go with it.

Posted by Procopius2k 2008-11-25 11:17|| 2008-11-25 11:17|| Front Page Top

#9 I think Barry Bonds would have been more help than Biden on the Obama ticket myself but does the US need Obama/Bonds? I don't think so.

Posted by rjschwarz 2008-11-25 12:39|| 2008-11-25 12:39|| Front Page Top

#10 Issuing bonds in a foreign currency is a stupid idea. Every banana republic out there has issued foreign currency bonds. The result has always been a major boom followed by the complete collapse of the currency and economy - defined here as a 50% contraction - accompanied by widespread social unrest. If we can't finance out debt, the right way to fix this is to cut expenditures and raise yields. We don't need a penny of foreign financing. Americans will rush in to buy Treasuries with 5% yields. The problem is that the Treasury department won't issue them - they are putting out debt without compensating for the risk of future hikes in rates.

Posted by Zhang Fei 2008-11-25 15:29|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2008-11-25 15:29|| Front Page Top

#11 This article simply confirms for me an earlier suspicion, William Pesek is an amoeba - to call him a cretin would be an insult to cretins.

Posted by Zhang Fei 2008-11-25 15:31|| http://timurileng.blogspot.com]">[http://timurileng.blogspot.com] 2008-11-25 15:31|| Front Page Top

#12 Assuming there isn't a total collapse of confidence in the dollar, can't anyone see that the unleashing of all this cash (albeit really just paper) will result in massive inflation as trillions of TARP/bailout funds work into the econmy? I was in the market in the 80's when we had money market rates of 18+ %, and remember selling a guy US Treasury Bonds for Puerto Rico at 13%. Those numbers will be chickenfeed in this next go round.
You can only shake the confidence of the public so long, and DIRE things start to happen.
And into this massive mess, domestically and abroad, steps ZERO, with manical, calculating and adroitly sly Marxist plans.....
sounds like a Clancy novel, or more likely Cussler....
My grandparents are spinning in their graves in anger at how we have screwed up the grandest experiment in the history of mankind!

Posted by NoMoreBS">NoMoreBS 2008-11-25 16:02|| 2008-11-25 16:02|| Front Page Top

#13 This scheme may work for a while...10-20 years

Try 10-20 months. I've concluded that this is a attempt to jump start the economy before the effects of paying the government debts are felt.

Read the UK Times and Telegraph where there are discussions of the impact of the debt resulting from the current bailouts and stimuluses. If economies are not back to something like normal in 18 months or less then the gamble will have failed and government debt will drag us into something worse.

BTW, the USA was hit worst in the Great Depression because it had most of the world's excess manufacturing capacity. This time around, it will be China.

Posted by phil_b 2008-11-25 16:03|| 2008-11-25 16:03|| Front Page Top

#14

Posted by GolfBravoUSMC 2008-11-25 17:04|| 2008-11-25 17:04|| Front Page Top

#15 That pretty much covers it, GBUSMC.

Posted by Barbara Skolaut">Barbara Skolaut 2008-11-25 19:22|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/] 2008-11-25 19:22|| Front Page Top

#16 I'm stealing that flowchart!

Fuckin' awesome.

Posted by DarthVader 2008-11-25 19:28|| 2008-11-25 19:28|| Front Page Top

#17 Spike - try this one.

Posted by Barbara Skolaut">Barbara Skolaut 2008-11-25 19:42|| http://ariellestjohndesigns.com/]">[http://ariellestjohndesigns.com/] 2008-11-25 19:42|| Front Page Top

#18 Methinks the Russian was just reflecting on his own experience of an empire collapsing . Euros have been betting on an American breakup since the Treaty of Paris.

Han Solo: You said you wanted to be around when I made a mistake, well, this could be it, sweetheart.
Princess Leia: I take it back.

Posted by Procopius2k 2008-11-25 22:20|| 2008-11-25 22:20|| Front Page Top

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