June 17, 2009

Who will buy our debt?

“I am concerned about the long-term issue of our structural deficit and our long-term debt. If we don’t get a handle on that, then there’s no doubt that, at some point, you know, whether it’s the Chinese, the Koreans, the Japanese, whoever else has been snatching up Treasuries, are going to decide that this is too much of a risk.”

- Barack Obama, admitting what we all know is true, June 2009


Anonymous said...

obama will get them to continue to buy our debt just by the power of his oratory alone.

that and they need to keep buying to prop up their economies that are based on exporting to the usa.

Anonymous said...

This statement is a load of crap.

The idiot who said that , didn't know what he is talking about.

President Obama knows what he is doing.

Ooops, was it THAT President Obama who said that ?

Did somebody switch the teleprompter ?

How's that for speaking out of BOTH sides of your mouth ?


Andrew from Russia said...

One more stock market crash/bank panic, and the reborn domestic savers (ex-consumers) will chew it up in the form of "safe" savings bonds, to be inflated away at some point in the future. Just a guess, of course.

Afterthought said...

He hasn't put the country on a survival footing. Why?

The 21st century will be one of enormous technological and societal change amidst a roiling backdrop of population pressures and diminishing resources.

Perhaps now isn't the best time to indulge every whim of the people? Perhaps now is the time to make them grow the $%#@ up.

Carter tried. And was booted out. 30 years later we know he was pretty much dead on. The alternative to his realism was to paper over reality by borrowing.

That's over.

Obama may "get it" but he isn't exactly communicating that to the people. You've got to go to where people live and grab them by the throat, not give pedantic speeches to the intellectuals.

When people see Obama sweating and running around in a panic, they will know it's time to get serious. His cool "confidence" persona undermines the needed message.

yoski said...

Not to worry, US treasuries will never ever be defaulted on like GM or Chrysler bonds or maybe even Clownifornia state bonds. How can they default if they own the printing press.
Who will buy or debt?
It comes down to 3 categories. The first are suckers. The same fools that bought into GM, Chrysler, Enron, Madoff and the housing boom. Obviously they are plentiful and it would be a shame to leave all that easy money on the table.
The second category are friendly forgein governments. Japan, Saudis, Germany, etc. They want to avoid a world financial panic and buy dollars for no other reason.
The 3rd category are governments that don't give a damn about the dollar or US but instead want their export driven economy to pick up again. They already know they will take a hit on their US treasuries but view it as investment to get their own economy going again. Those include China, Korea, Brazil.
Then there those openly hostile to the dollar like Russia and those who openly voice concern, like Germany, Brazil and China.
This won't end well.

msNJ said...

He said yields on Treasuries will definitely rise, in that fly-catching interview yesterday. What does this indicate? I also heard someone on CNBC yesterday talking about a W recovery, with the next crash in... 2011. You say 2013, Keith. No one wants to say 2012 because with that Mayan legend stuff, it would just be too weird to have things get worse(r) again in 2012 on the dot.

Anyhow, I think that the economy is Obama's Iraq. As such, I am venturing a mid-year prediction that at some point soon, the US is going to default on a portion of, if not all of its debt, somehow. Perhaps by planting a set of extremely high-value "fake" (but not fake) bonds in a suitcase in Europe somewhere and then destroying them "legally".

Wait, what? You're kidding!! I'll be...

All jokes aside, I believe that the default will cause a huge plunge in the economy and housing market. People will be freaking out just in time for the next election and Obama will run on a "stay the course" platform. The dollar will ultimately be strengthened, but things will cost much less. Until the next run-up.

Anonymous said...

The child-would-be-president must be auditioning for a late night talk show host. He runs up the debt to 3 times more than EVER in the history of the country. He absolutely jambs bills through congress where no one ever has a chance to really read them (remember, the American people will be able to view online each and every bill before the big O signs it - yeah, sure). And then he STARTS talking about pay-as-you-go. Where was that idea before you ran up the debt, dumb ass?

Obama, probably the ONLY man who could make Bush look like a GREAT president. Change, be careful what you wish for, you might get it - and we did, in the form of one big pinhead.

Anonymous said...

Ron Paul's "Fed Transparency" Bill Gets Majority House Support


Anonymous said...


After you saw those "Green Shoots" how much green did you spend?

DOPES wants to know. And Cramer says thanks...BOO YAA


RICO said...

The Federal Reserve is *buying* our debt by means of US Treasury-sanctioned accounting fraud.

Ponzi-nomic *sleight of hand* to cover up massive Wall Street bankster 'securitization' fraud by covering CDS counterparty 'bets' in full.

Criminal activity abounds.

The DOJ has obviously been told to *stand down* in the interest of National Security.

The USA is bankrupt.

The dollar is toast.

Anonymous said...

Good thread.

"...Perhaps now isn't the best time to indulge every whim of the people? Perhaps now is the time to make them grow the $%#@ up.

Carter tried. And was booted out. 30 years later we know he was pretty much dead on. The alternative to his realism was to paper over reality by borrowing.

That's over...."

ROFL. We'll never, EVER behave responsibly until we are FORCED to.

Witness the last 10 years.

This is going to end so fucking ugly.

"...we’re going to continue to have problems..."

Understatement of the century.

"...forcing those people to eat their bad investments is considered politically unacceptable.

We therefore will do this "the hard way", just like we did in the 1930s..."

Right on the money.

Joe said...

The O-man is right. Anybody that does not understand this has no clue. Amerika is beyond BK and runs on 3 billion a day received from foreign investors.

Well, well, guess what has happened recently while the masses have slept. 3 out of last 4 TIC reports have been negative.

Wake up peoples, foreign investors are now shunning the US, the O-man knows it and we have little time and only a printing press left.

Game over US Empire, this year. Period

Joe M.

Anonymous said...


Gimmie Cheese.

Anonymous said...

Well we will of course. Silly...

Did you ever watch "History of the World: Part I"? It was a 1981 comedy with Mel Brooks. Every time I hear people talking about the economy or the various Wall Street bandits or remembering the Enron scandal or ... well, name just about any other major corporation's actions in this country, a scene from the movie keeps coming to mind:

Picture it:
Mel is a "French King" who is playing a game of life-sized chess in the garden with the rest of the French Aristocracy. Suddenly he says (and I don't recall the exact order, but you'll get the idea), "Bishop takes Queen", and while the Bishop runs over to the Queen drops her to the ground and begins to have his way with her, Mel excitedly says, "Knight takes Queen", and on and on and on, until he finally calls for everyone to take the Queen and he himself runs in to join the now growing pile of bodies on the Queen moaning, and a..., well you get the idea.

What's my point? The US is the Queen; at some point everyone is going to say the hell with it and join in. Maybe they already have... Maybe we should just say the F-with-it and join in as well.

-Silly Monkey

P.S. All someone needs to do at this point in time, to collapse this country (and we're close), is starting printing counterfeit currency faster then the Fed. and disrupt the flow of oil. Well huge amounts of counterfeit bills are already being printed (by countries we can only speculate on) and the constant fear of oil disruption is there.

k.w. - Southern Ca. said...

Why there is no stopping the
mother of all depressions (and hyper-inflation) to date:

Good luck, we will all need it.

Anonymous said...

All the stimulous isn't doing a bit of good! $13 trillion and we still have deflation! And our debt is going throught the roof! I see interest rates going through the roof along with all the debt.

U.S. Economy: Cost of Living Decreases by Most in Six Decades

By Courtney Schlisserman

June 17 (Bloomberg) -- The cost of living in the U.S. fell over the last 12 months by the most in six decades, easing concern that government efforts to revive the economy will lead to an immediate outbreak of inflation.

“Inflation is not an issue,” said Michael Moran, chief economist at Daiwa Securities America Inc. in New York. “There are huge amounts of slack in the economy and demand is quite soft, so it’s difficult to see how inflation can pick up for the balance of the year.”


gutless and lazy said...

I'll buy your debt.

But you're a bad risk. I want 15% interest.

15% ... coming sooner than u think.

Anonymous said...


I got it give it to ya! You and Schiff had it right after all, we're definately in HYPERINFLATION. Ooooopsss, what's this from Mish:

"CPI Drops 1.3% in Past Year, Biggest Drop in 59 Years; Where To From Here? "


les said...

Who will buy our debt?

Who will hold our debt?

The major players are trying to divest themselves of treasuries without causing a panic.

Last week 2 Japanese nationals in Italy (probably there for the G8 summit) were caught smuggling $149 billion in bonds to Switzerland.


The clip is from a Japanese station. There seems to be a blackout in the West.

The Japanese news clip does mention that there is a question to the bonds authenticity. That's because so few people outside central banks know what they look like or know how to verify them. Even if the bonds turn out to be fake, it is definitely news worthy.

Shortly afterward, the Japanese govt said their trust in US T-Bills are "unshakable".

Russia also said recently that US T-bills are sound. Despite the fact Russia is now divesting from T-Bills.

People may scoff at Jim Rogers. But Jim Rogers' views reflect Asian sentiment. In his last MSNBC appearance, he seems confident that there will be a currency crises within the next year.

Anonymous said...

"...The DOJ has obviously been told to *stand down*..."

What else could it possibly be?

Gotta love the transformation on a scale not seen since the reforms that followed the Great Depression." part.

As. If. there were no laws against what the Financials and the Fed did/are doing.

Lawless. Nation. of Financial Criminals.