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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (105891)	6/3/2011 7:32:35 PM
From: chartseer	Respond to of 224748

China follows Bill Grossman? citizrn chartseer

To: FJB who wrote (105891)	6/3/2011 7:59:33 PM
From: chartseer	Read Replies (2) \| Respond to of 224748

If china and PIMCO both sold their treasuries who the heck is buying? citizrn chartseer

To: FJB who wrote (105891)	6/3/2011 8:48:33 PM
From: chartseer	1 Recommendation Respond to of 224748

Interest rates to go higher. Before the end of March 2012, the Treasury must redeem all of the $1.7 trillion in Treasury bills that were extant as of March 2011 and find new or old buyers who will continue to invest in U.S. debt. But, for now, the Chinese at least do not appear to be bullish customers of short-term U.S. debt. Treasury bills carry lower interest rates than longer-term Treasury notes and bonds, but the longer term notes and bonds are exposed to a greater risk of losing their value to inflation. To the degree that the $1.7 trillion in short-term U.S. Treasury bills extant as of March must be converted into longer-term U.S. Treasury securities, the U.S. government will be forced to pay a higher annual interest rate on the national debt. As of the close of business on Thursday, the total U.S. debt was $14.34 trillion, according to the Daily Treasury Statement. Of that, approximately $9.74 trillion was debt held by the public and approximately $4.61 trillion was “intragovernmental” debt. democraticunderground.com chartseer