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

To: mishedlo who wrote (33955)	7/21/2005 5:56:27 AM
From: Chispas	Respond to of 116555

Bill Buckler's Comments - . "In 2004, Americans were holding $US 37 TRILLION in debt - more than $US 123,000 for every man, woman and child in the US. Last year, the US recorded an overall internal credit expansion of $US 2,718.6 Billion - 26 percent of its GDP. National saving was virtually zero. Were the US to decelerate its current internal credit expansion back to zero, the US economy would contract by that 26 percent of GDP. The saga continues. Over the week to June 13, the US broad money supply (M3) rose $US 16 Billion to $US 9.70 TRILLION. Four-week gains were $US 80 Billion. Year to date M3 growth has accelerated to 5.1%. This is "money" created, through loans, out of thin air, with credit piled on top. The (Still) Friendly Foreign Lenders: For all of 2004, foreign investors acquired a record net $US 1.255 TRILLION of US financial assets. In the first quarter of 2005, this figure fell to an annual rate of $US 1.170 TRILLION. In these numbers lie the real financial danger to the US. If foreigners stop lending, the US economy would dive by about 11 percent of its current GDP, simply from the cessation of the inflow of funds. As of the end of March 2005, global foreign investors held the following respective percentages of the total of Treasuries, Agencies, US corporate bonds and US equities: 43.0%, 13.2%, 27.3% and 13.4%. Combined world holdings of Treasuries and Agencies were 25.8% of the total. US capital market assets readily salable by foreigners totalled $US 6.668 TRILLION or 68.5% of total US financial assets held by foreigners. As of the end of March 2005, foreign investors held a grand total of $US 9.723 TRILLION of US financial assets. As of the end of March, all foreign financial liabilities to the US came to $US 4.634 TRILLION, resulting in a net foreign claim against the US of $US 5.089 TRILLION. The GLOBAL breakdown will likely happen in the second half of this year. The Bush Administration plans to borrow internationally an additional $US 900 Billion this year." the-privateer.com