Can you please post more evidence of this 3x number? I am curious to how the credit destruction is being calculated precisely.
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Not Deflation...
- Thread starter PohPoh
- Start date
Can you please post more evidence of this 3x number? I am curious to how the credit destruction is being calculated precisely.
Quote from jprad:
The latest figures show that 75% of the national debt is owned by domestic entities...
You're highlighting the problem. Foreign holdings of US Treasuries are ~25% - as foreign holdings are at historical highs this means foreign participation in *current* Treasure auctions is considerably higher than 25%.
This also doesn't take into account all the agency debt which has become de facto sovereign debt with the recent Treasury policies.
Nor does it take into account that foreigners withdrawing from Japanese treasury-equivalents means the end of WPA-like programs, whereas foreign withdrawal from future US treasury participation means no Social Security checks. Much different level of problem...
Japan has had low interest rates for decades.... where is the inflation???
1. The boomer demographic cannot be replenished. It's that simple.
2. Those currenctly in their 20a and 30s, firstly can't fill the boomer demographic in terms of numbers and secondly, even if they could they don't have the money. Most are in debt, paying off student loans or medical expenses. Money for stocks? No way.
3. How many Americans are going to make it past 60? No many I'd say, judging by their health. Less people = deflation.
1. The boomer demographic cannot be replenished. It's that simple.
2. Those currenctly in their 20a and 30s, firstly can't fill the boomer demographic in terms of numbers and secondly, even if they could they don't have the money. Most are in debt, paying off student loans or medical expenses. Money for stocks? No way.
3. How many Americans are going to make it past 60? No many I'd say, judging by their health. Less people = deflation.
Quote from Random.Capital:
You're highlighting the problem. Foreign holdings of US Treasuries are ~25% - as foreign holdings are at historical highs this means foreign participation in *current* Treasure auctions is considerably higher than 25%.
No matter how much increased foreign participation there is now does not change the fact that the person I replied to was wrong -- the majority of our debt is not foreign owned and that fact is not going to change any time soon.
Quote from jprad:
Not true.
(I posted this on another thread as well -- why do so many people think this is the case?)
The latest figures show that 75% of the national debt is owned by domestic entities with the Fed itself on the hook for 52%.
Only 25% is foreign owned and that breaks down as; Japan 21%, China 19%, UK 11%, OPEC nations 6%.
Russia checks in at less than 3%.
http://en.wikipedia.org/wiki/United...mated_ownership
Foreign Debt purchases have increased 500% in the last 2 years..
Quote from jprad:
Irrelevant.
You stated that the majority of our debt was foreign owned.
It's not, own up already.
From my notes,
$4.7 trillion in private hands, $2.4 trillion (51%) is held by foreign investors. Japan holds around $600 billion (24%) and China holds $500 billion (around 20%). U.K., Brazil and the oil exporting countries own about 6%.
Quote from PohPoh:
From my notes,
$4.7 trillion in private hands, $2.4 trillion (51%) is held by foreign investors. Japan holds around $600 billion (24%) and China holds $500 billion (around 20%). U.K., Brazil and the oil exporting countries own about 6%.
Nice spin there, sparky.
That foreign owned debt, the $2.4T you're referring to, is 25% of the total debt.
The fact remains that the Fed owns $4.8T, 52% of it and the remaining 23% is owned domestically.