Last month the U.S. debt grew $574 billion to $10.574 trillion. That’s an increase of 6% in October alone. And Treasury is planning to sell another $550 billion of bonds the last three months of this year. Look for the national debt to surpass $12 trillion next year. CNN published a good piece today summarizing all the bailouts to date. They put the price tag, so far, at $3 trillion. That’s not money we’ve spent yet, it’s commitments the Feds have made to spend. That means we’ll have to flood the market with more treasury bonds to raise the money we need to finance the various bailouts. I don’t care how troubled the world economy is and how “safe” treasuries appear to be relative to other asset classes. There’s no way interest rates will stay low perpetually, not if the supply of Treasuries shoots the roof.
“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw. Why Copper Bullion ~~~ Interview with Silver Bullion Producer Market Harmony Passive Income blog
Heavy will lie the crown
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Posted - 11/06/2008 : 17:02:08
