Leave it to the government to invent a whole new way of tallying demand for our debt when the old way may show that there is no demand. Although unconfirmed, the Treasury may be skewing numbers to show that there is more foreign demand for U.S. debt than is actually there. I guess if the truth came out that our credit-worthiness was in doubt, we could kiss our government's trillion dollar spending programs goodbye. Rates would catapult higher and we wouldn't even be able to afford interest payments. They may be able to skew numbers on one side, but on the opposite side of the world our creditors in the form of China and Russia have made it very clear and explicit that they do not trust the U.S. Dollar to act as the world's reserve currency. Our record levels of debt scares them silly, and rightly so.
Read the article HERE.
U.S. Treasury auction changes may overstate indirect bid
NEW YORK, June 24 (Reuters) - Recent changes to the way the U.S. Treasury tallies demand at its bond auctions may be artificially inflating "indirect bids," a category used by investors as a loose proxy for foreign demand....
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment