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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (25768)	2/6/2010 12:27:08 AM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 103300

Re: "Who has that kind of money to invest in the U.S. Nobody." Wrong. Two quick points: 1) the bulk of it is internally financed (i.e. Americans or American Fed itself are right now --- last six months, say --- purchasing the majority of US short-term sovereign debt issuance). 2) Foreigners, (China, Japan, etc.) have actually increased purchases in recent months. So long as they insist on protecting their internal jobs by maintaining an artificial low value for their currencies vs. the US Dollar then they are FORCED to purchase US debt to 'sterilize' the massive inflows of US dollars that they receive from their exports to the US. If they didn't do that then INFLATION would eat their countries alive. NOTE, please: I am NOT saying that we don't have big, big problems with our structural federal deficits ('cause we do!), or with the high level of indebtedness of the American society itself (government, business, individuals!) because we sure do with that too! But I AM SAYING that --- in the time frame that you suggested... over the next year or two --- we, America, WILL NOT be "forced to DEFAULT" (as you suggested) "because of the tilt toward short-term debt instead of long-term debt". That much just ain't in the cards... not with the entire GLOBE in a massive crisis as it is, and with some MANY OTHER BIG NATIONS in even deeper trouble....