What's this rumor that the Fed will buy $1 trillion in US bonds before midterm elec.

correct. a country can run a trade deficit as long as other countries are willing to finance the deficit by buying its debt securities. the US has irresponsibly expanded its public sector and public debt resulting from government pension promises, unemployment benefits, bailouts etc.. cut the public sector by 25%and the problem disappears,
 
Quote from poyayan:

No. You are equating QE as the same as africa and south america dictatorship debt. In order for that scenario to happen, you need to borrow in FOREIGN currency first. IE, if Argentina has tons of debt in US dollar, when they devalued their currency, their debt DID NOT shrink.

US debt are all in US dollar. That is the key point.
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at some point both foreigners and US residents don't want US paper.
the Fed buys the paper and monetizes the debt creating inflation.
 
Would you put it beyond the gangster Fed to establish target rates on mid to long term bonds so it could cut them too? For example, what if at the next fed meeting they establish a target rate of 2.5% on the 10 year and cut that rate by 25 or 50 bps everytime the stock market needs a pop.
 
Nobody has shorted the United States of America on a long-term basis and lived to tell about it. Did Osama hang on to his short for 12 months?

Go ahead and be the first. The capitalization for your timing might prove problematic.

Why is it that every other market in the World waits for the U.S. ?

Do you know why the United States pulls so much shit all the time? Because apparently they can. The U.S. can print money and the world buys it. Without demand rates wouldn't be where they are. Is the World stupid? Without the U.S. where would China be? China needs the U.S. intact and on top. China's holdings depend upon it. Europe? Red Bull is great but we need some follow-through. Do you know how exhausting it is to constantly be the big innovator? Just because the U.S. owns the IP and subcontracts out the assembly to third-world adolescents doesn't mean the parents of the adolescents gain control of the IP. China should at some point in time do something innovative and original for themselves. Without stealing it.

I know it's terrible, and it doesn't make sense, and the macroeconomics don't add up, but please be advised that money talks and your opinion about the U.S. walks.
 
Quote from bone:

Nobody has shorted the United States of America on a long-term basis and lived to tell about it. Did Osama hang on to his short for 12 months?

Go ahead and be the first. The capitalization for your timing might prove problematic.

Why is it that every other market in the World waits for the U.S. ?

Do you know why the United States pulls so much shit all the time? Because apparently they can. The U.S. can print money and the world buys it. Without demand rates wouldn't be where they are. Is the World stupid? Without the U.S. where would China be? China needs the U.S. intact and on top. China's holdings depend upon it. Europe? Red Bull is great but we need some follow-through. Do you know how exhausting it is to constantly be the big innovator? Just because the U.S. owns the IP and subcontracts out the assembly to third-world adolescents doesn't mean the parents of the adolescents gain control of the IP. China should at some point in time do something innovative and original for themselves. Without stealing it.

I know it's terrible, and it doesn't make sense, and the macroeconomics don't add up, but please be advised that money talks and your opinion about the U.S. walks.
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Red Bull isn't European, it's Thai. It's solely owned by one very rich Thai family.
 
Long-term unemployment is alarmingly high: in the US, half the unemployed have been out of work for over six months, something we have not seen since the Great Depression," he said.
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This is from the IMF. I have little respect for the IMF as they are pushing a One World Order. However, they do have serious numbers and stats that hold water. So, read the last sentence.

Google the US and "Since the Great Depression". See how many times this phrase is used.

We are in the Second Great Depression. Much like the first, there was a "Recovery" and a Stock Market move that many called "BULLISH". They declared the "DEPRESSION" over as many are declaring the "GREAT RECESSION" over, NO DOUBLE DIP.

SO, yes the FEDs are standing buy to purchase a shit tone of "Paper".

The Unemployment numbers for this week will be around 400K again, maybe alittle under, last weeks numbers will be revised. GDP numbers going forward will be revised down wards, Earnings will look padded but compared to "BEFORE THE GREAT DEPRESSION OF 1930s) they will look horriable.


Wake up people. We are in the Eye of the Hurrican. We went through the Front Wall in 08....the eye is about passed over. After the NOV elections, going into the Close of this year and Spring of 2011, we will see how strong the final blow is.
 
Joe, you're right, but the Austrians are involved. We'll move that credit over to Guiness.

Go, Thailand.

Emrglobal: short the market. be the man. long term. you make a very lucid and reasonable point - but from a relative value perspective all the money flows are inbound.

again, the world needs the U.S. apparently more than the U.S. needs them.
 
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