Category: US Debt
The analysis published under this category are as follows.
Tuesday, December 11, 2012
U.S. National Deficit / Interest-Rates / US Debt
By: Fred_Sheehan
"Under current law, the Treasury is technically allowed to mint as many coins made of platinum as it wants and can assign them whatever value it pleases. Under this scenario, the U.S. Mint would make a pair of trillion-dollar platinum coins. The president orders the coins to be deposited at the Federal Reserve. The Fed moves this money into Treasury's accounts. And just like that, Treasury suddenly has an extra $ trillion to pay off its obligations for the next two years - without needing to issue new debt. The [current $16.4 trillion national debt] ceiling is no longer an issue." - Brad Plumer, Washington Post, December 6, 2012, "Could the 'Platinum Coin Option' Solve the U.S. Debt Crisis?"
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Friday, December 07, 2012
US Debt Crisis, Interest Rates and GDP / Interest-Rates / US Debt
By: Zeal_LLC
With the rancorous fiscal-cliff negotiations dominating newsflow, the markets are rightfully on edge. Will a deal be reached as time relentlessly dwindles, or not? How the fiscal cliff is resolved has massive implications for the US economy and markets in 2013 and beyond. But provocatively, the fiscal cliff is a minor sideshow in the real crisis. The United States of America is drowning under federal debt.
Wednesday, December 05, 2012
California Dreaming: Bankruptcy, Pensions and Taxes / Politics / US Debt
By: BATR
The California Public Employees' Retirement System lives in the rarified air where financial magic somehow materializes to pay for their irrational exuberant pensions. When the drug high is over, the real world requires a harsh penalty for ebullient irresponsibility. The Chicago Tribune reports:
"San Bernardino, a city of 210,000 about 60 miles east of Los Angeles, filed for bankruptcy protection on August 1. Since then, it has halted its bi-weekly, $1.2 million payment to Calpers, saying it wants to defer any payments to the fund until fiscal year 2013-2014. Calpers says the city is already $6.9 million in arrears since August 1.
Monday, December 03, 2012
Doing Away With U.S. Debt Ceiling Drama / Politics / US Debt
By: Peter_Schiff
Treasury Secretary Timothy Geithner made news last week by proposing to transfer the Congressional prerogative to raise the debt ceiling to the President. The change would essentially do away with the meaningless debt ceiling debates that have become ritual kabuki in Washington over the past few generations. Most Republicans have dismissed the proposal as a blatant executive power grab that will significantly weaken both the Congress and the minority party. While this is certainly true, Congress will only lose a power that it has never shown the slightest courage to actually use. But in truth, the proposal has the merit of refreshing honesty. By telling U.S. taxpayers, and the world in general, that the U.S. government has no intention of ever balancing its budget or limiting its accumulation of unsustainable debt, then perhaps we can begin to have an honest discussion about our economic future. Read full article... Read full article...
Friday, November 30, 2012
NY Fed Mortgage Debt Data Says No US Economic Recovery / Economics / US Debt
By: Raul_I_Meijer
Let me try to keep this short and still make the point I want to make. Lately, I've seen a huge amount of people talking about an economic recovery, certainly in the US, so much so that people who disagree with that assessment are labeled "doomer" or things like that. Again. It's an easy thing to do.
Thursday, November 15, 2012
US Budget Deficit Soars in October; Do You Trust the Politicians to Solve This Looming Crisis? / Interest-Rates / US Debt
By: InvestmentContrarian
Sasha Cekerevac writes: The U.S. Treasury Department recently released the budget deficit numbers for October, reporting a massive $120 billion deficit. This compares to a budget deficit in October 2011 of “only” $98.0 billion. While the U.S. economy is not growing at a rapid rate, it’s certainly not shrinking. So in the span of one year, with some growth in the U.S. economy, albeit slow growth, we’ve seen an approximate $20.0-billion monthly year-over-year increase in the budget deficit. I think this shows the true ineptitude of our political leaders.
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Thursday, November 15, 2012
Facing the Fiscal Cliff Solves 77% of the Deficit Problem in One Move / Interest-Rates / US Debt
By: Money_Morning
Martin Hutchinson writes:
With the election over, Wall Street is now obsessing over the possibility that the "fiscal cliff" negotiations may end in stalemate.
Well I have news for them: a stalemate would be good for the U.S. economy, and any deal that does not preserve most of the fiscal cliff is not worth having.
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Saturday, November 10, 2012
Obama To Continue Extend and Pretend, Going Over the Fiscal Cliff is Good for America / Politics / US Debt
By: Peter_Schiff
Now that President Obama has been re-elected, the media is finally free to focus on something besides the clueless undecided voters in Ohio, Florida, and Colorado. The brightest and shiniest object that has attracted its attention is the "fiscal cliff" that we are expected to drive over at the end of the year unless Congress and the President can agree to turn the wheel or apply the brakes.
Friday, November 09, 2012
America's Double Trouble and The Reckoning, U.S. Debt Higher than Greece / Economics / US Debt
By: Andy_Sutton
Now that the untold billions have been spent trying to convince America that our leaders actually know what they’re doing, they’re going to get put to an early test, and a critical one at that. Looming large are two big issues: the debt ceiling (again), and the ‘fiscal cliff’ automatic budget cuts. While they may seem like two separate issues, it all really ties together rather nicely into one big package that can be loosely labeled as yet another attempt to spend more than is brought in and at the same time justify it. The good news is that the players are the same so the egos are the same and we can use that as barometer based on how they ‘handled’ the situation in 2010. The bad news is the egos are the same and they did a pitiful job in 2010, opting to simply kick the can down the road as opposed to actually embarking on any meaningful reform pathway.
Thursday, October 25, 2012
Why Government Debt Is Dragging on the U.S. Economy / Interest-Rates / US Debt
By: Casey_Research
By Dan Steinhart, Casey Research : The US has too much debt. This is no longer a controversial statement. Some may believe other problems are more urgent, or that we need to grow our way out rather than slash spending. But even the most spendthrift pundits acknowledge that the debt-to-GDP ratio of the US must decrease if we are to have a stable, prosperous economy.
Friday, October 12, 2012
Negative Real Yields on U.S. Treasury Debt Highly Bullish for Gold / Interest-Rates / US Debt
By: Jesse
Today's 30 year Treasury auction was described as 'soft' as the cover rates were not as robust as yesterday's ten year. Ten-year notes started the day yielding 1.679% and were recently yielding 1.684%, while 30-year bonds were up 12/32 in price to yield 2.875%.
Personally I think that buying a 30 year bond yielding under 3 percent is insanity.
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Friday, September 28, 2012
Christine Lagarde On The U.S. 'Fiscal Cliff' / Politics / US Debt
By: Ian_R_Campbell
I suggest you read an article published last Friday by The Telegraph which reports on remarks made and concerns expressed by International Monetary Fund Managing Director Christine Lagarde with respect to the rapidly approaching January 1 (now only three months away) U.S. Federal spending cuts and taxes increases that are then due automatically to come into force.
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Wednesday, September 26, 2012
Nothing Will Change Until the Great Debt Default, Will you be Prepared? / Interest-Rates / US Debt
By: Gary_North
The Wall Street Journal ran an article the likes of which I have never seen. "The Magnitude of the Mess We're In." It was written by five well-known economists. It warns readers about a series of highly destructive outcomes of the federal government's present fiscal policies. The article says that these problems are close to being unmanageable.
Sunday, September 16, 2012
The Deficit, The Economic Consequences of a Political Decision / Politics / US Debt
By: John_Mauldin
We are often told that the current election is the most important in recent history. I think I have heard that in about ten presidential cycles, ever since I first voted, for McGovern, as a young man. And looking back, only about one of those elections actually qualified on that score. I think this election does have the potential to be one of those rare times, at least in terms of economic outcomes. In Thoughts from the Frontline we cover economics and investments, money and finance. We only rarely stray into the political world, and then only glancingly. Today, we cross that gray line, but at a somewhat different angle, as we look at the economic consequences of the political decision that will come with the choices we make in November in the US.
Wednesday, September 12, 2012
Sky No Longer the Limit for U.S. National Debt / Interest-Rates / US Debt
By: Pravda
The U.S. national debt has hit a new record. It has long been clear that no one can handle the problem. Therefore, the term, which the U.S. will need to come close to the legislative ceiling of this indicator, remains the main topic for speculation and forecasts. It is possible that the Americans will make it during the remaining several months of 2012.
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Wednesday, September 05, 2012
The Quadrillion Dollar Deflationary Debt Raft / Interest-Rates / US Debt
By: Raul_I_Meijer
Our Down Under roving reporter Skip came up with a few interesting questions when watching an interview that Russia Today recently ran with economist Richard Duncan.
Where doth debt take us going forward, and, for that matter, where has it - really - taken us so far? If and when Japan implodes, does that force the US out of the possibility of moving - or already being - into the Japanese deflationary scenario and into something more sinister? Will it be a quadrillion dollar long-term drip-feed, in essence prolonging death, or a massive quadrillion dollar diversion into breakthrough technologies? Both perhaps? Go halfsies?
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Monday, August 27, 2012
America: The Land of Debt / Economics / US Debt
By: InvestmentContrarian
Traders and the media are focused on the debt distress in Spain, as the country is hindered by a national debt of around 712 billion euros, or about US$892 billion, which breaks down to US$19,391 per citizen. This is why Spain is seriously concerned about the 10-year bond yield at close to seven percent. Paying these high financing costs, trying to cut its national debt and manage its budget will not be easy. The reality is that the eurozone and Europe are in a serious financial crisis.
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Tuesday, August 14, 2012
Why The Government Is Destroying The U.S. Dollar / Interest-Rates / US Debt
By: Dan_Amerman
The United States government has five interrelated motivations for destroying the value of the dollar:
1. Creating money out of thin air on a massive basis is all that stands between the current state of hidden depression, and overt depression with unemployment levels in excess of those seen in the US Great Depression of the 1930s.
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Thursday, August 02, 2012
Unintended Consequences of Well-Intended Policies / Interest-Rates / US Debt
By: Casey_Research
Dr. Lacy Hunt for Casey Research writes:In the early 1960s, when JFK was in the White House and William McChesney Martin was Fed chairman, Keynesian economics was in full bloom. One of its major tenets is the Phillips Curve, which posits a stable inverse relationship between the rate of inflation and the unemployment rate. Yale professor James Tobin and others argued that the social outcome could be improved by a more activist monetary and fiscal policy. Specifically, they contended that the unemployment rate could be lowered while only resulting in slightly higher inflation.
Tuesday, July 24, 2012
The Relationship Between High Total Public Debt and Interest Rates / Interest-Rates / US Debt
By: John_Mauldin
The relationship between high total public debt and interest rates is controversial (to some); and in today’s Outside the Box Van Hoisington and Dr. Lacy Hunt of Hoisington Investment Management tackle the subject head-on, in their “Quarterly Review and Outlook” for Q2 2012. They bring important new evidence to the debate, citing three academic studies (including an April 2012 paper coauthored by Rogoff and Reinhart) and an historical retrospective that focuses on the debt-disequilibrium panic years of 1873 and 1929 in the US and 1989 in Japan. In their view, the onus of responsibility for the “Panic of 2008” falls on the sometimes-slumping shoulders of the Federal Reserve, for making money and credit too easily available, and then “[failing] to use regulatory powers to check the unsound lending and the concomitant buildup of non-productive debt.”