Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (6782)	2/2/2004 9:01:41 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

I would not call them eager buyers of US Trez debt instead, unwilling & coerced from shorterm motivations as well as lack of alternatives eventually Asians will convert USTBonds to oil reserves, gas reserves, metals mines, stores of food supplies, cement plants, steel mills, forests, coal mines, gold, silver, and maybe even diamonds and rubies they will soon figure this game out they will trade USTBonds for what will be needed to build new economies the key is the USDollar ist path dictates future decisions / jim

To: philv who wrote (6782)	2/2/2004 9:45:36 PM
From: russwinter	Read Replies (1) \| Respond to of 110194

Reuters U.S. Expects to Borrow $177 Bln in Q1 Monday February 2, 4:36 pm ET By Jonathan Nicholson WASHINGTON (Reuters) - Coming off of a record borrowing binge in the final three months of 2003, the U.S. Treasury Department (News - Websites) on Monday said it expects to borrow even more money from capital markets in the current quarter. In its quarterly borrowing estimate, the Treasury said it borrowed a slightly smaller-than-expected $113 billion in the October-December quarter. However, that was still above the previous record $111 billion the Treasury borrowed from private investors in the January-March quarter of 2003. The Treasury is forced to sell debt to finance the government budget deficit, which is expected to set a record at $521 billion in the 2004 budget year, which began Oct. 1. That follows a record-setting $374 billion gap in 2003. The deficit is shaping up to be a campaign issue for President Bush as he seeks another term in the White House. After the 2000 election Bush pledged to pay off most of the national debt, but he has been forced to wrestle with surging budget deficits. Democrats say the deficits show Bush's tax cuts were unaffordable, while the administration says the gaps are the result of a sluggish economy and needed spending on the military and homeland security. In November, Treasury had thought it would borrow slightly more in the final quarter of 2003, about $117 billion. It said the difference was made up mostly by lower spending. For the current January-March quarter, the Treasury estimated it will borrow $177 billion, up from a projection of $160 billion made in November. "The increase in borrowing is due to lower receipts, primarily from an increase in tax refunds, and higher outlays," Treasury said. According to the Treasury's Office of Tax Analysis, the biggest kick from the accelerated individual income tax cuts enacted last year will actually come early this year, as taxpayers get their refunds. The tax cuts are expected to reduce cash flow to the U.S. Treasury by $39.3 billion in the January-March period and $60.5 billion in the April-June quarter.