More than half of the $9 trillion in debt U.S. to accrue will be INTEREST only

[libertad]

Quote from JamesJ:

they are all fiat...
he asked for the best out of all the bad ones...
Switzerland has a massive trade surplus and low debt - public and private.
add the gold reserves and safety and steadiness of their politics...

CHF has long been a safe haven and still is, i reckon it would be much higher (following the path of gold) if the Nationalbank were not intervening.

..............................................

The ¨right¨tax rates matter as well....

It just seems that the Swiss manage a tighter ship than most countries....

Taxes are a big part of prices and therefore competitiveness....

One does not have to have a gigantic ship....a smaller tighter run ship ....is better in a lot of ways....
...................................................

What would be interesting one day is to have a banking facility that would allow the actual CB rates per currency....cash on cash....instead of forex...

Then the game becomes the interest received and the currency movement....

ie 1.05x1.10x1.11x1.15....etc....

 

[JamesJ]

I stick to short maturity bonds mostly in CHF and EUR, and some in USD... (rolling 6 month SWAPS with a rate of the 6 month LIBOR, a synthetic product offered by my bank)

they yield almost nothing at the moment, but i'm fine in "quasi-"cash right now.

The yield will rise along possible inflation (as rates should rise along it), so you are protected to a certain degree.

you may not be aware how extremly (!!) high the correlation of inflation and short term interest rate in CHF has been.

the very superior goal of the Swiss Nationalbank is price stability...
and the 3m interest rates have been at ("current inflation rate" + 1%) +/- 0.5% almost the whole past century.

 

[Emini Maestro]

Quote from MohdSalleh:

the only way out is another revolution now

Politicians and the UN know that. But looking around, I doubt that Americans have the guts to do what the South did 150 years ago. The second civil war would NOT be a video game on the Wii.

 

[libertad]

Quote from MohdSalleh:

the only way out is another revolution now

................................................

Actually this is a very interesting point of impasse....

What needs to occur is debt destruction....

Question is....what entity is going to impose it ?

 

[Emini Maestro]

Quote from libertad:

................................................ Actually this is a very interesting point of impasse.... What needs to occur is debt destruction.... Question is....what entity is going to impose it ?

Debt-for-equity swap with China? California in exchange for our national bonds they hold? Throw in Oregon and Washington if they assume all other American debts?

 

[hayman]

Quote from Mvic:

What happens if this economic slow down continues and the US consumer doesn't make a roaring come back? Where will the Chinese and Japanese who have long been used to huge USD trade surpluses get the USD with which to keep buying US treasuries?

My guess is that when Obama went over to Asia they told him some hard truths and told him that Americans need to stop being delusional about their debt problem because crunch time is near.

Those who think that the US can just devalue their way out of the debt are also deluding themselves, politically it is a non starter which AARP (people on fixed incomes) getting more powerful by the day and economically it would be a disaster with input costs soaring.

We will be taking our medicine at some point, better sooner rather than later.

I agree wholeheartedly !

 

[Banjo]

Quote from achilles28:

Thanks.

A year ago, I was railing and cursing these bastards up and down. Realized the hostility only takes away from the point. So I toned down.

We're in serious trouble. I estimate 3-5 years, max.

I buy into this, it may take a bit longer but we will see something enormous before 2020. The globalism drive has been so obvious for so long , I just don't see how some people are oblivious to it.

 

[the1]

The government has already secured a way of putting down whatever revolution rises up. Think about what has been happening over the past few weeks.

Quote from MohdSalleh:

the only way out is another revolution now

 

[jprad]

Quote from Emini Maestro:

Debt-for-equity swap with China? California in exchange for our national bonds they hold? Throw in Oregon and Washington if they assume all other American debts?

Nah, Beijing would much rather have Taiwan.

 

[achilles28]

Quote from Dr. Zhivodka:

Well of course they do ....what in gods name do you thinks the Eurodollar market is all about? Will I shock the shit outta you to tell you that it goes all over the global...EVERY NIGHT?


Be that as it may the TIPS market is sensing inflation expectations. And that's the most important thing you can take for next several months.

The hostility wasn't necessary.

Where's this obvious connection between Eurodollars and clandestine FED loans to central banks to purchase US Treasuries? I don't see it.

Perhaps you can enlighten me?