The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Larry S. who wrote (4369)	2/18/2008 7:04:12 AM
From: Real Man	Read Replies (1) of 71455

"The problem is that in about 10 or so years the SS revenues will no longer cover benefits and it will be necessary to redeem special treasuries. This will add to the Unified Deficit and the redemptions will require more borrowing from the public. This will mean an increase in rates and all of this debt will become debt held by the public." I'm afraid that point will be reached in 2008, as the retirement wave is expected to first hit this year. That plus the tax hilo drop obviously won't improve the government finances. Kind of like... the wave of subprime resets this fall was to the housing market. I agree, it is not clear if it happens in 2008, 2009, or later. Unlike with resets, we have not seen detailed data, just speculation. "Special treasuries"? Hmm... Do they even exist? GAAP makes perfect sense, IMHO, otherwise corporations would not use it to report earnings. They will have to either can SS and medicare or drastically increase their borrowing in already skittish treasury market.

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