US Treasury Bonds

[Spiky]

With US budget deficit close to USD 1 trillion, it is a matter of time before the world loses confidence and no longer wants to buy US Treasury bonds and notes.

If demand for US Treasury bond drops, it will invariably lead to an edging up of US long-term interest rates. And then US mortgage rates will rise too.

If the rating agencies start to downgrade them, we may face another crisis in the fixed income market that will spillover to the equity markets.

In other words, the Americans are screwed.

I am not too bullish on countries that do lots of trade with the US. But I am bullish China. Go long China, go short USA.

Europe is undergoing their own austerity measures and cutting spending. At least there is hope for Europe 10 years down the road.

US is screwed, big time. Another crisis in the making. Akan datang.

 

[Devil Within]

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[Relako]

The Japanese copied the Federal Reserve under Alan Greenspan and cut interest rates after the bursting of the Japanese property market bubble.

The Japanese cut their interest rates to zero and they went into an extended recession for more than 15 years. Of course, the Japanese had their quantitative easing along the way too.

The the Federal Reserve under Bernanke is copying the Japanese, exactly - cutting interest rates close to zero and quantitative easing too.

Alan Greenspan went from hero to zero (becos of the subprime crisis). After seeing what Bernanke is doing now, I think Alan Greenspan will go back to hero again.

The future President of USA may just ask Alan Greenspan to come back as FED chief again, if Greenspan is still alive and kicking.

 

[Charlie258]

A Moron(Greenspan) left, and was replaced with a Spastic(Bernanke). And now, just because the Spastic cannot do the job, you want to replace him with the Moron?

 

[Relako]

A Moron(Greenspan) left, and was replaced with a Spastic(Bernanke). And now, just because the Spastic cannot do the job, you want to replace him with the Moron?

Who will you suggest as the next chief of FED ? Paul Krugman ?

I wouldn't mind Paul Krugman as I think he is a big-picture guy (if you have read his works on international trade)

 

[Devil Within]

Who will you suggest as the next chief of FED ? Paul Krugman ?

Get Peter Schiff.

 

[halsey02]

Who will you suggest as the next chief of FED ? Paul Krugman ?

I wouldn't mind Paul Krugman as I think he is a big-picture guy (if you have read his works on international trade)

Ho Jinx...the best! not only the US Dollar now turning into monopoly money, with HEr in charge, in will become HELL MONEY!!

 

[longbow]

Problem with Japan is that they doled out their stimulus too slowly.

The kick start economy must be very aggressive. If US did everything at once economy would be in better shape.

Like fighting fire with garden hose; better to use all available water via fire hose in 20 minutes vs 24 hours vis gdn hose.

The Japanese copied the Federal Reserve under Alan Greenspan and cut interest rates after the bursting of the Japanese property market bubble.

The Japanese cut their interest rates to zero and they went into an extended recession for more than 15 years. Of course, the Japanese had their quantitative easing along the way too.

The the Federal Reserve under Bernanke is copying the Japanese, exactly - cutting interest rates close to zero and quantitative easing too.

Alan Greenspan went from hero to zero (becos of the subprime crisis). After seeing what Bernanke is doing now, I think Alan Greenspan will go back to hero again.

The future President of USA may just ask Alan Greenspan to come back as FED chief again, if Greenspan is still alive and kicking.

 

[hokkienpeng]

With US budget deficit close to USD 1 trillion, it is a matter of time before the world loses confidence and no longer wants to buy US Treasury bonds and notes.

I guess with so much misinformation floating around, this sort of idiotic post is unavoidable.

The US is hoping that China would dump US treasury bonds. In fact the White House is taking active measures to ensure that it happens.

The whole problem right now is that China keeps buying up US treasury securities to keep the value of RMB low relative to other currencies so that Chinese goods can be kept cheap. This is great for Chinese exports but factories in every other country are going to be forced out of business since they can't compete with Chinese prices. Note that this isn't because Chinese factories are more efficient but because China is in effect subsidizing its exports by keeping the RMB low (mainly through buying up US debt) &mdash; a selfish act that also violated numerous WTO regulations.

In fact, one of the retaliation measures proposed is to forbid China from participating in US debt auctions so that China can't buy anymore US debt (like treasury bonds).

If China dump all its US treasury bonds, it will be a very good thing for the US. Since then US exports will be cheap and perhaps (though not likely) US could export its way to a recovery.

Don't take my word for it, read it yourself from a Nobel laureate:

http://krugman.blogs.nytimes.com/2010/09/10/chinese-bond-purchases/

 

[Devil Within]

Don't take my word for it, read it yourself from a Nobel laureate:

http://krugman.blogs.nytimes.com/2010/09/10/chinese-bond-purchases/

Paul Krugman is an idiot. Peter Schiff has more juice than that fake economist Paul Krugman.

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[Cruxx]

With US budget deficit close to USD 1 trillion, it is a matter of time before the world loses confidence and no longer wants to buy US Treasury bonds and notes.

If demand for US Treasury bond drops, it will invariably lead to an edging up of US long-term interest rates. And then US mortgage rates will rise too.

If the rating agencies start to downgrade them, we may face another crisis in the fixed income market that will spillover to the equity markets.

In other words, the Americans are screwed.

I am not too bullish on countries that do lots of trade with the US. But I am bullish China. Go long China, go short USA.

Europe is undergoing their own austerity measures and cutting spending. At least there is hope for Europe 10 years down the road.

US is screwed, big time. Another crisis in the making. Akan datang.

At the moment, you should short the sterling instead. Do a Soros on them.

 

[Cruxx]

Paul Krugman is an idiot.

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Ask the Germans if Paul Krugman is someone worth listening.

 

[Cruxx]

Get Peter Schiff.

An Austrian school advocate eh?

 

[Thick Face Black Heart]

The world cannot isolate itself from USA. When they fall, the entire world will be adversely affected, China probably worst of all.

The best is sector-specific and region-specific plays, like the gulf states, oil, precious metals, etc.

In other words, the Americans are screwed.

I am not too bullish on countries that do lots of trade with the US. But I am bullish China. Go long China, go short USA.

Europe is undergoing their own austerity measures and cutting spending. At least there is hope for Europe 10 years down the road.

 

[SQguy]

I am sticking to gold bars and keep buying them. In another 6 months currency wars will start when prices of commodities will become so expensive inflation will hit roof. Countries must learn from china....keeping currency weak is great and let's all learn from it. Eurozone will peak at 25 percent employment in two years and social structure will collapse. Poor countries will face very big issues due to high commodity prices and riots will start in countries like India, Indonesia etc.

In japans as we all know nothing will happen and few more people will jump in front of train.....it is a dead economy and country.

 

[Relako]

I guess with so much misinformation floating around, this sort of idiotic post is unavoidable.

The US is hoping that China would dump US treasury bonds. In fact the White House is taking active measures to ensure that it happens.

The whole problem right now is that China keeps buying up US treasury securities to keep the value of RMB low relative to other currencies so that Chinese goods can be kept cheap. This is great for Chinese exports but factories in every other country are going to be forced out of business since they can't compete with Chinese prices. Note that this isn't because Chinese factories are more efficient but because China is in effect subsidizing its exports by keeping the RMB low (mainly through buying up US debt) &mdash; a selfish act that also violated numerous WTO regulations.

In fact, one of the retaliation measures proposed is to forbid China from participating in US debt auctions so that China can't buy anymore US debt (like treasury bonds).

If China dump all its US treasury bonds, it will be a very good thing for the US. Since then US exports will be cheap and perhaps (though not likely) US could export its way to a recovery.

Don't take my word for it, read it yourself from a Nobel laureate:

http://krugman.blogs.nytimes.com/2010/09/10/chinese-bond-purchases/

USA will panic if China dumps her US Treasury bond holdings. The last thing USA wants now is for their long term interest rates to go up. Given the number of foreclosures, if the mortgage rates go up, more people will lose their homes.

Your argument is one dimensional. Is USA an export-dependent country ? Their economy is 70% dependent on the domestic and service sector.

If you have to depend on reading other economist's arguments and not form your own opinions, you are an idiot in the first place.

Typical Sinkie 'quote from textbooks and quote other people' mentality. What a f##ling loser !

 

[Watchman]

If the rating agencies start to downgrade them, we may face another crisis in the fixed income market that will spillover to the equity markets.

This time you be screwed sideways in and
out with no amount of +/- tweaking is going to help .

 

[Seee3]

I am sticking to gold bars and keep buying them. In another 6 months currency wars will start when prices of commodities will become so expensive inflation will hit roof. Countries must learn from china....keeping currency weak is great and let's all learn from it. Eurozone will peak at 25 percent employment in two years and social structure will collapse. Poor countries will face very big issues due to high commodity prices and riots will start in countries like India, Indonesia etc.

In japans as we all know nothing will happen and few more people will jump in front of train.....it is a dead economy and country.

Then what will happen to Sg? What will happen to the gold we hold? Can sell? Or ...

 

[tanwahtiu]

With US budget deficit close to USD 1 trillion, it is a matter of time before the world loses confidence and no longer wants to buy US Treasury bonds and notes.

If demand for US Treasury bond drops, it will invariably lead to an edging up of US long-term interest rates. And then US mortgage rates will rise too.

If the rating agencies start to downgrade them, we may face another crisis in the fixed income market that will spillover to the equity markets.

In other words, the Americans are screwed.

I am not too bullish on countries that do lots of trade with the US. But I am bullish China. Go long China, go short USA.

Europe is undergoing their own austerity measures and cutting spending. At least there is hope for Europe 10 years down the road.

US is screwed, big time. Another crisis in the making. Akan datang.

A Spending economy is an unsustainable economy. Keep buying with credit will soon be using 'hell monies' to buy buy buy.

 

[unicando]

I guess with so much misinformation floating around, this sort of idiotic post is unavoidable.

The US is hoping that China would dump US treasury bonds. In fact the White House is taking active measures to ensure that it happens.

The whole problem right now is that China keeps buying up US treasury securities to keep the value of RMB low relative to other currencies so that Chinese goods can be kept cheap. This is great for Chinese exports but factories in every other country are going to be forced out of business since they can't compete with Chinese prices. Note that this isn't because Chinese factories are more efficient but because China is in effect subsidizing its exports by keeping the RMB low (mainly through buying up US debt) &mdash; a selfish act that also violated numerous WTO regulations.

In fact, one of the retaliation measures proposed is to forbid China from participating in US debt auctions so that China can't buy anymore US debt (like treasury bonds).

If China dump all its US treasury bonds, it will be a very good thing for the US. Since then US exports will be cheap and perhaps (though not likely) US could export its way to a recovery.

Don't take my word for it, read it yourself from a Nobel laureate:

http://krugman.blogs.nytimes.com/2010/09/10/chinese-bond-purchases/

hmm...i tot chn is being use as the cheap factory for many big global company setting up factory there. more correctly is to say mnc factory in chn import compoents from other countries and assemble/build them. ppl buying these global brand products made in chn and not chn brand products. so most of big money chn generating belong to these mnc. these mnc will move their factory to any cheaper country that can offer similar advantage or better deal for them...