Treasury market proudly flicking off everyone who thinks yields might ever be normal. Thank god everyone and their grandma is frontrunning the FED.
Yeah, borrow at 0 and invest for… whatever, soon govt would also start borrowing at 0, what will happen then?
Gov’t is now the 2nd largest holder of Gov’t debt. So what happens when they roll the debt/restructure/pay it down?
Basically Govt is printing for themselves, usually the value should tank down but thanks to Chinese (and others) that it hasn’t and won’t. Looks like one day Chinese politburo members will come to US and say, we are FED up with so much paper. Now, we want Texas! If not that much, I’m sure next bailout is going to come from Chinese if they maintain such levels of Dollar reserves/GDP.
Bernanke Wrote: ------------------------------------------------------- > Basically Govt is printing for themselves, usually > the value should tank down but thanks to Chinese > (and others) that it hasn’t and won’t. > Looks like one day Chinese politburo members will > come to US and say, we are FED up with so much > paper. Now, we want Texas! > If not that much, I’m sure next bailout is going > to come from Chinese if they maintain such levels > of Dollar reserves/GDP. Interesting tactic, developed countries must be crossing their fingers for a Biblical-style ‘jubilee year’ in 2011 or figuring might as well run a huge deficit if the world’s ending in 2012 anyways. Personally, I vote if the former possibilities don’t pan out, go ahead and give 'em Texas.