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Politics : Formerly About Advanced Micro Devices

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To: Taro who wrote (601949)2/27/2011 11:57:03 AM
From: Brumar891 Recommendation   of 1574282
 
China has stopped buying US Treasury bonds:

"China ended 2010 with $891bn in Treasuries, extending its drop from a record high of $940bn in July 2009."

ft.com

The Federal Reserve is printing money to buy Treasury debt. The current $600B QE2 program runs out in June. Whats going to happen then? In order to get foreigners to buy Treasury debt, rates are gonna have to go up. And over time the interest portion of the budget will balloon.
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