Thread: U.S. Treasury Debt Auctions Bombing, China Heading for Hills

U.S. Treasury Debt Auctions Bombing, China Heading for the Hills … Higher Interest Rates Dead Ahead!

Interest-Rates / US Interest Rates Feb 19, 2010 - 10:15 AM
By: Mike_Larson

You can’t count on Washington to pro actively warn you about major economic and market problems …

* We warned you that tech stocks would crash well before they did.
* We told you the housing market would implode well before it did.

And as you know, for months we’ve been ratcheting up our warnings about the government bond market.

Now, the very latest data suggests the day of reckoning is fast approaching. This is no longer some theoretical, potential future event. It’s a crisis that could strike with deadly force at virtually any time. You simply must consider taking action to protect yourself and profit before it’s too late!

Let’s get right to the numbers …

10-Year, 30-Year Auctions Stink Up the Joint!

Every few weeks, Uncle Sam floods the bond market with a deluge of new long-term notes and bonds. The government has no choice! It’s running massive budget deficits, with tax revenues failing to cover expenses, and it has to borrow to make up the difference.

Historically, the Treasury Department hasn’t had any trouble finding buyers for its bonds. It could always count on loyal foreign and domestic bidders to show up at its debt auctions.
Treasury is having trouble finding buyers for its bonds.
Treasury is having trouble finding buyers for its bonds.

But times are a-changing!

Just a few days ago, Treasury tried to auction off $25 billion in 10-year notes and $16 billion in 30-year bonds. Investors failed to step up to the plate in either auction — a bright red warning sign for bonds if I’ve ever seen one!

With the 10-year auction, only 33.2 percent of the notes sold went to so-called “indirect bidders,â€

Who would want our bonds and treasuries at this point? There's a high risk of default. Any country studying the US economy knows we're in a collapse with no plan and no action to correct the fundamentals that caused it.

If you want to fix the problem, then:

1. stop illegal immigration
2. pass the FairTax
3. protect our trade
4. legalize/regulate/tax under 2 the illegal drug trade
5. drill baby drill

No country is going to bail out the United States government when it has so clearly betrayed the very citizens and businesses it expects to repay $14 Trillion of debt with no means to do so.

Duh.

Originally Posted by Judy

Who would want our bonds and treasuries at this point? There's a high risk of default. Any country studying the US economy knows we're in a collapse with no plan and no action to correct the fundamentals that caused it.

If you want to fix the problem, then:

1. stop illegal immigration
2. pass the FairTax
3. protect our trade
4. legalize/regulate/tax under 2 the illegal drug trade
5. drill baby drill

No country is going to bail out the United States government when it has so clearly betrayed the very citizens and businesses it expects to repay $14 Trillion of debt with no means to do so.

Duh.

OK Judy, I'm on board with all five of your proposals.

Originally Posted by melena29

Originally Posted by Judy

Who would want our bonds and treasuries at this point? There's a high risk of default. Any country studying the US economy knows we're in a collapse with no plan and no action to correct the fundamentals that caused it.

If you want to fix the problem, then:

1. stop illegal immigration
2. pass the FairTax
3. protect our trade
4. legalize/regulate/tax under 2 the illegal drug trade
5. drill baby drill

No country is going to bail out the United States government when it has so clearly betrayed the very citizens and businesses it expects to repay $14 Trillion of debt with no means to do so.

Duh.

OK Judy, I'm on board with all five of your proposals.

Oh thank you so much melena29. We need to spread the word. Just call them "Judy's Five Steps To Fix Our Country", not to give me credit but to identity them. I've emailed them to Glenn Beck and Stephen Moore of the WSJ. You know Stephen Moore who is on Greta Live all the time is one of the economists that developed the FairTax? He sure was.

We are so running out of time and our government is paralyzed by special interest and ignorance on all levels. Maybe if they just see this little list they'll say "hey, we can do that".

YES YOU CAN! So just do it. And by the way, they don't cost anything, not a red cent of new government spending or one dime of new debt.

I saw the poll on the other thread from Rasmussen that says 75% of likely voters are angry at government policies. Well of course they are. The vast majority of Americans know most of what we need to do, and if they hear the others they'll say "of course now that I think about it, absolutely".

This government must act and act now, because we are running out of time, because we've already run out of money. With this many angry Americans, it is not a good thing. Our government must respond and respond now to the will of the American People.

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Japan now owns more U.S. securities than China

http://www.alipac.us/ftopict-188506-japan.html