Saturday, December 19, 2009

Making 2012 Campaign Videos - Deficit Spending

All too easy to video edit now and splash stuff on youtube even if you can't afford a TV spot. These comments come back to bite you in the ass with back to back years of trillion dollar deficits and a sovereign default crisis. Our credit rating had a toe dipping style warning by Moody's this month. The federal government funding crisis is coming. Obama just hopes it is after 2012. When it happens, it will rock every debt instrument since (almost) all other bond yields are tied to the US govt bond rates. Mortgage rates, credit cards and even small business loans will be jacked up. Variable student loans? Ha, skyward! Here's how the crisis can unfold, from China...

"The United States cannot force foreign governments to increase their holdings of Treasuries," Zhu Min said, "Double the holdings? It's definitely impossible".

"The US current account deficit is falling as residents' savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world. The world does not have so much money to buy more US Treasuries".


This is not a Democrat or Republican thing. Both parties are responsible for running up deficits, it's just they are trillion dollars a year under the Dems instead of hundreds of billions under the GOP. Tea Party supporters will look like Cassandras not 'teabaggers' as Anderson Cooper, the POTUS, and Rahm call them. Does anyone watch Anderson Cooper anymore? Buy gold.

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