Sam,
The US has a $5 trillion national debt (Just US treasuries. Not counting private/corporate debt). Comparing this to the $600 billion makes it a little more plausible.
But I still agree, $600 billion/year is a very high number. If it was a misprint, $600 million makes no sense. It's way low. $60 billion is also low. Remember, what was it, about $28 billion flowed into our markets from Japan in the month of April.
If anyone can verify this, it would be interesting to know. Maybe Jimmy Rogers claiming Japan was going to destory the US capital markets (he's been saying it for at least 3 years) isn't so far off the mark? He always inferred Japan was financing our debt.
This brings up another topic. The Euro. For those that don't know this, there is concern the Euro is going to be strong competition for the dollar. There is worry that instead of foreign countries financing the US national debt, they will instead buy the Eurobonds. I'm a little concerned about this, but have no idea how to put it in perspective. Is it really going to happen? What is the magnitude? When is it going to happen, etc. I know nothing about this except some are worried. The US seems to be taking a stance (Rubin and Greenspan) of saying oh well, it's going to happen. Not much we can do about it. It will probably be good for us. I can't remember their reasoning why they said it would be good for us?
MikeM(From Florida) |
