Journal zogger's Journal: They can't sell the debt 14
Uncle Sugar is trying to run this whole expensive shebang on debt, in particular, selling debt, bonds.
Well, if ya take a gander, they ain't sellin'..by a lot.
Auction results, partial copy paste, dec 29th
4 week
Tendered Accepted
Primary Dealer7 $71,350,000,000 $8,314,620,000
Direct Bidder8 $5,150,000,000 $657,192,000
Indirect Bidder9 $13,152,888,000 $12,751,977,000
Total Competitive $89,652,888,000 $21,723,789,000
5 year
Tendered Accepted
Primary Dealer6 $75,720,000,000 $17,995,580,000
Direct Bidder7 $7,101,000,000 $5,457,370,000
Indirect Bidder8 $25,753,100,000 $18,437,820,000
Total Competitive $108,574,100,000 $41,890,770,000
"No mas..No mas!"
Man....compounded debt promises offered that are being treated like mutant poison ivy. Go on and extrapolate yourself the outcome from this dichotomy between public happy face from the pols and stock shillers and trillions in proposed expenditures and then stuff like this in the fine print.
We are going to be *lucky* to only have peaceful/no social unrest hyperinflation and a surge in imported goods prices if this keeps up. I can't see any way possible to fund this huge government without running the presses, because no one is gonna eat a 90% tax rate (whatever, some hugemongous number like that), and that is the only alternative they have if they can't sucker in any more foreign so called investment.
Well..there is one..they won't do it, but they could run an emergency government furlough, pretty much shut down at least half of federal agencies, cut all entitlements and pensions in half, throw money in keynesian bucketfuls at public works infrastructure projects, and another huge wad at tax free/tax credits offered energy projects and so on, and try and soak up as much unemployment as possible (including the newly furloughed government workers) into wealth producing employment. And then do an A to Z look at patents and copyrights, eminent domain seize truckloads of them and open source them, to further spur a domestic manufacturing surge to compensate for what is coming. They won't do all of that and a scosh more little tricks like skipping the war on carbon and the healthcare war on everyone, but that is really all that can work at this point. We'll call that the "nixon on crack, steroids and a jug of home stilled corn liquor" gambit (He was a skunk, I didn't like him, but he would do it, he postponed the collapse by two generations before with shrewdness and some balls, by telling the planet to just eat printing press dollars or else). And they did. Until now....
Most likely..my guess..is they will go to an expanded war or three instead (which will be the "..or else" part finally getting into play), the typical historical governmental and kingly reaction to this sort of economic morass, the "grande diversion".
Well, if ya take a gander, they ain't sellin'..by a lot.
Auction results, partial copy paste, dec 29th
4 week
Tendered Accepted
Primary Dealer7 $71,350,000,000 $8,314,620,000
Direct Bidder8 $5,150,000,000 $657,192,000
Indirect Bidder9 $13,152,888,000 $12,751,977,000
Total Competitive $89,652,888,000 $21,723,789,000
5 year
Tendered Accepted
Primary Dealer6 $75,720,000,000 $17,995,580,000
Direct Bidder7 $7,101,000,000 $5,457,370,000
Indirect Bidder8 $25,753,100,000 $18,437,820,000
Total Competitive $108,574,100,000 $41,890,770,000
"No mas..No mas!"
Man....compounded debt promises offered that are being treated like mutant poison ivy. Go on and extrapolate yourself the outcome from this dichotomy between public happy face from the pols and stock shillers and trillions in proposed expenditures and then stuff like this in the fine print.
We are going to be *lucky* to only have peaceful/no social unrest hyperinflation and a surge in imported goods prices if this keeps up. I can't see any way possible to fund this huge government without running the presses, because no one is gonna eat a 90% tax rate (whatever, some hugemongous number like that), and that is the only alternative they have if they can't sucker in any more foreign so called investment.
Well..there is one..they won't do it, but they could run an emergency government furlough, pretty much shut down at least half of federal agencies, cut all entitlements and pensions in half, throw money in keynesian bucketfuls at public works infrastructure projects, and another huge wad at tax free/tax credits offered energy projects and so on, and try and soak up as much unemployment as possible (including the newly furloughed government workers) into wealth producing employment. And then do an A to Z look at patents and copyrights, eminent domain seize truckloads of them and open source them, to further spur a domestic manufacturing surge to compensate for what is coming. They won't do all of that and a scosh more little tricks like skipping the war on carbon and the healthcare war on everyone, but that is really all that can work at this point. We'll call that the "nixon on crack, steroids and a jug of home stilled corn liquor" gambit (He was a skunk, I didn't like him, but he would do it, he postponed the collapse by two generations before with shrewdness and some balls, by telling the planet to just eat printing press dollars or else). And they did. Until now....
Most likely..my guess..is they will go to an expanded war or three instead (which will be the "..or else" part finally getting into play), the typical historical governmental and kingly reaction to this sort of economic morass, the "grande diversion".
Source? (Score:1)
I don't suppose you'd have a URL handy for a source for this? I know some people who might be interested, but who get glazed looks when I mention "Slashdot"...
Horse's mouth (Score:2, Interesting)
http://www.treasurydirect.gov/instit/annceresult/press/preanre/2009/2009_4week.htm [treasurydirect.gov]
http://www.treasurydirect.gov/instit/annceresult/press/preanre/2009/2009_5year.htm [treasurydirect.gov]
Just select the latest, dec 29th
The actual stuff is in PDFs so when I copied I had to use the "post in code" option here to keep the formatting. I tried plain old text and it got garbled.
Here's another year end analysis by someone else, a bit more than what I wrote if you want a human readable synopsis of the state of the economy. You simply can
Re: (Score:2, Informative)
Question: If I am starving, why the hell would I want your gold?
Everyone who is hoarding gold is going to find themselves sitting on... a pile of gold.
Gold is just as much a meaningless reference for wealth as anything else is. "They aren't making any more of it!" is valid for almost any substance.
No one is making more land, and we all know how well faith in that asset holding value turned out.
If everyone agrees that gold is The Offici
Re: (Score:1)
No one is making more land...
No? [nasa.gov] I would beg to differ [internatio...stment.com] :-)
tangibles (Score:2, Insightful)
I hold a lot more than gold, it is just part of it. And for that matter, using your example, what is a starving man going to do with your stocks and bonds? heck, most people don't even hold their physical stocks, they are held elsewhere and they just get a statement.
If you go back and read some stories about the great depression, or have had the privilege of talking to relatives who went through it..believe me, gold and silver still got used in the gray market economy back then, even after roosevelt confisc
Gotta be same for Calif. (Score:1)
I get a kick out of the ads I see in the paper for California bonds. Not redeemable until 2017 or something like that. Ya, like who would buy those! We'll have long been taken over by the federal govt. (since we're too big to fail (meaning, as it does today, simply that we have too many union jobs that, being so, and unlike private sector jobs, are worth saving)) and ceased being a state by then, to become the second D.C.: District of California.
Re: (Score:2)
California has a huge, tangible economy. Agriculture, for one thing. Heck, just legalize and tax pot, and all of California's budget woes disappear in a puff of smoke. Hehe. But California has so much more than just pot and huge, multinational entertainment conglomerates. Think aerospace, computing, genetics: all the important industries of the technological age.
California's budget problems spring from an inability or lack of desire to tax it's enormous assets fairly. A libertarian mindset holds sway, any t
Re: (Score:1)
But marijuana also leads to the destruction of brain cells, the tragic results of which can be witnessed right here, immediately above. ;)
But more seriously:
Agriculture, for one thing.
Our agriculture has been decimated by (Liberal) environmentalist groups getting a (Liberal) judge to shut off the water from the northern part of the state used to irrigate the central valley. Even Liberal Hollywood actor/comedian Paul Rodriguez opposes this Liberal idea.
Heck, just legalize and tax pot, and all of California's
Re: (Score:2)
California, by itself one of the world's largest economies, was created by a liberal state. Makes you think, doesn't it? In fact, if we look at all the world's largest economies, we find most of them created by states more liberal than the US. Weird, huh? Somehow I don't think California will be giving up it's heavyweight title any time soon, troubles or no.
Re: (Score:1)
Well I don't think California was created by any state -- in name, maybe, but the foundation for becoming one of the world's largest economies was the people of California. Unless you're attributing the national defense spending that presumably spurred an aerospace boom here (before my time, but I thought I might have heard that Silicon Valley was the creation of the generation that were the offspring of these engineers) as having the single most important role in making this state's economy the size it is.
Re: (Score:2)
I was talking about the politics of California itself, not the federal government. And what of all the other, decidedly liberal economies I mentioned? The largest economies are (not counting the largest, the EU) the US, China, Japan, India, Germany, Russia, the UK, and France. Find me one country on that list that is less liberal than the US. You can't.
Re: (Score:1)
You'd have to tell me what you mean by "liberal economies" then, for me to know what you're getting at. I was talking about Liberal policies. And California wasn't always a blue state, IIRC, esp. during when this state's economy was growing to where it is in modern times now.
If your thesis re: "fair taxation" is that out-of-control spending, one of the typifying characteristics of Liberals, is only a problem when there are obstacles in the way, like our Proposition 13 limiting the growth of annual property
So basically (Score:2)
The "Full Faith and Credit of the United States" is now worth less than 50% of what the Democrats think it does.
50% (Score:1)
It's worse than that probably. The US makes something like 14 trillion a year in inflated dollars, and this includes some really dubious things of worth like "IP" stuff being "worth" such and such a digital copy. Future debt load is way over one hundred trillion and climbing daily, much faster than true wealth creation could justify.
I read this analogy with budgets, it is more or less accurate. Say you make 200 grand a year, but are already three million in debt, and your projected budget and day to day spe