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 : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (451)	2/22/2004 10:52:42 PM
From: Chispas	Read Replies (3) \| Respond to of 116555

"Japan, China and America have never been more aligned than they are today" (European companies are in danger....) Found by Winston on Kitco.... yomiuri.co.jp

To: Chispas who wrote (451)	2/22/2004 11:19:48 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

US Treasuries vs National Debt Discussion From a chain on IHUB investorshub.com ======================================================================= Feb. 23 (Bloomberg) -- U.S. Treasury note investors are more bearish on signs that inflation is poised to accelerate and on speculation the Bank of Japan may reduce its purchases of U.S. debt. Ried, Thunberg & Co.'s weekly index of sentiment toward the 10-year Treasury note fell to 45 Friday from 48 a week earlier. A reading below 50 reflects expectations the note's price will fall through the end of March. The 37 investors surveyed by the Westport, Connecticut-based research firm manage $122 billion. A government report Friday that showed the consumer price index rose the most in 11 months and a surge in the dollar versus the yen has damped the appeal of Treasuries. Inflation erodes the value of fixed-income payments while a rising dollar means the Bank of Japan has less of a need to sell yen for the U.S. currency, giving it less money with which to buy Treasuries. ``All that, to us, argues interest rates will eventually move up,'' said Robert Doll, president of Plainsboro, New Jersey- based Merrill Lynch Investment Managers, which has about $500 billion in assets. Yields move inversely to bond prices. The benchmark 4 percent note due in February 2014 fell about 3/8 last week, or $3.75 per $1,000 in face value, to 99 1/4. The yield rose 6 basis points, or 0.06 percentage point, to 4.10 percent. The yield may reach 5 percent in a year, Doll said. ======================================================================= Reply from Zeev Well, are you surprised? In the last three weeks only the national debt has increased by $75 B, I have not seen such an acceleration in debt since I have been monitoring it closely in the last 10 years. If you really want to get frightened, from 2/4 (after the beginning of the month influx of receipts) to 2/19, a mere 15 days, debt increases by $80 B..... Zeev ====================================================================== Reply from SmartMoney If you divide the national debt by every citizen in American it's not that bad. Americans today have hundreds of thousands in debt if you count the mortgage. The national debt is still manageable. ===================================================================== Reply from Sherlock I think the debt itself now is likely managable...it is the rate of increase of debt and the massive spending programs that have not even kicked in yet that are a major concern imo. ======================================================================= Reply from Zeev Look at the curve of debt vs GDP, it was declining in the years 1995 to 2000, now it has taken on frightening acceleration characteristics, again. Zeev