Article

2009-07-30 Economy

Weak Treasury Auctions Raise Worries About US Debt Burden

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by Steve White 2009-07-30 00:00|| || Front Page|| [1 views ] Top

#1 Under the weight of the ballooning deficit, the government has raised auction volumes and analysts now wonder whether the strain on the market is showing.

If the US can't borrow enough to finance the deficit, then Congress will be forced to act by cutting spending, beginning with the $787 billion "Stimulus"

And with the overarching idea that republicans must be left out of all legislation in this congress, the democratic left will own the cuts.

It will also moot cap and trade, and health care, as well as any number of "reforms" on liberal democrats' agendas.

All of which has the "potential to translate into an electoral bloodbath for democrats in 2010.

Posted by badanov 2009-07-30 00:51|| http://www.freefirezone.org]">[http://www.freefirezone.org] 2009-07-30 00:51|| Front Page Top

#2 Under the weight of the ballooning deficit, the government has raised auction volumes and analysts now wonder whether the strain on the market is showing.

Nonsense! Just raise the interest earned to record levels and you'll have all kinds of takers and plenty of new cash to squander. If that fails to work, then nationalize all the 401k accounts and dump that money into gummit bonds. It's the rich people (old white men) who are to blame. They're just holding out for better returns.

Posted by Besoeker 2009-07-30 07:28|| 2009-07-30 07:28|| Front Page Top

#3 I have to point out that yields on 5-year bonds were 2.7% Would you loan money to this government at that rate for 5 years? I didn't think so.

Posted by Anguper Hupomosing9418 2009-07-30 08:24|| 2009-07-30 08:24|| Front Page Top

#4 If you are an investor who anticipates high inflation, you avoid bonds & such - they'll devalue even more than cash - and put money in stocks & commodities. If you anticipate deflation bonds are a little better than cash. If, like me, you expect both at the same time - inflation-driven increases in interest rates and decreasing corporate earnings, it's just a WAG which way to go.

Posted by Glenmore 2009-07-30 08:41|| 2009-07-30 08:41|| Front Page Top

#5 Don't be silly, Besoeker -- it's the Chinese and Russian governments that are refusing to play along.

Posted by trailing wife">trailing wife 2009-07-30 08:57|| 2009-07-30 08:57|| Front Page Top

#6 If you expect both at the same time - inflation-driven increases in interest rates and decreasing corporate earnings

Invest in aspirin and rot gut booze. Oh, and pitchforks.

Posted by ed 2009-07-30 09:18|| 2009-07-30 09:18|| Front Page Top

#7 If the US can't borrow enough to finance the deficit, then Congress will be forced to act by cutting spending, beginning with the $787 billion "Stimulus"

Oh they will cut. But not their bribe money. Defense and security will take the major hits. Then taxes will be raised.

High taxes+weak economy+high risk of being hit again+government bloat=loss for dhimocrats for the next 4 years.

Posted by DarthVader 2009-07-30 09:30|| 2009-07-30 09:30|| Front Page Top

#8 darth, Dems 'investment' in ACORN should maintain their electability regardless of what they do. And (as shown in Washington State a few years ago & others since) 'it doesn't matter who votes, it matters who counts the votes.'

Posted by Glenmore 2009-07-30 11:00|| 2009-07-30 11:00|| Front Page Top

#9 Don't be silly, the US government has no intention of cutting a significant amount of spending. Obama will leverage in a more pliable Fed chairman who will assist the government in monetizing the debt (or at least the deficits) as the Fed & Treasury swap newly-printed currency for newly-printed bonds.

Posted by AzCat 2009-07-30 13:25|| 2009-07-30 13:25|| Front Page Top

#10 Lesse, the Fed is payin' crap interest and equities are back. Whoodathunk desire for treasuries would go down under such conditions.

The only question I'd like answered is how much is spending going to be cut and how much money is going to be printed to cover our debt.

Posted by Mike N. 2009-07-30 15:09|| 2009-07-30 15:09|| Front Page Top

#11 The Fed Ponzi scheme with the Treasury is monitizing the debt right under everyone's noses, and not a squeak from anyone. Devaluing fiat money is the next bold step in destroying public confidence worldwide in credit markets. And specificallly in the US, is essentially theft in that they are simply stealing the real value of what we have saved in personal wealth through monitization. They print more paper and the buying power I had in my IRA/401/457 erodes just as if they simply stole the exact percentage by which they inflate the overall money supply. This and the 30 year de-industrialization of America represents the greatest transfer of wealth in the history of mankind, and not a real peep from our leaders.....but we are still checking to make sure Michael Jackson is really dead and what beer Zero will have at the picnic table tonight....

Posted by NoMoreBS">NoMoreBS 2009-07-30 16:02|| 2009-07-30 16:02|| Front Page Top

23:39 trailing wife
23:03 Old Patriot
22:57 Zhang Fei
22:55 Zhang Fei
22:47 Skunky Glins 5***
22:37 Anonymoose
22:37 Pappy
22:35 Skunky Glins 5***
22:21 Adriane
22:20 OldSpook
22:17 OldSpook
22:16 OldSpook
22:15 OldSpook
22:15 Anonymoose
22:14 OldSpook
22:06 James
22:03 OldSpook
22:01 Cornsilk Blondie
21:56 OldSpook
21:55 SteveS
21:54 OldSpook
21:46 KBK
21:46 OldSpook
21:44 OldSpook