The odds are good that China won't dump its holdings of U.S. Treasuries anytime soon. But by substantially reducing its purchases of U.S. debt - or halting them completely in the form of a buyers' strike - the Red Dragon could absolutely shatter the myth that it is the U.S. Federal Reserve that controls...
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By William Patalon III, Executive Editor, Money Morning
Is America getting in too deep?
According to a new estimate by the Congressional Budget Office (CBO), if the United States continues along its current path, U.S. public debt will reach 90% of the nation’s economic output by 2020.
Given that federal debt has already zoomed...
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..Gold is a time-proven wealth preserving asset in periods of economic depression. Government-sponsored cash is also a time-proven wealth preserving asset in such periods as long as your timing is right. In other words, as long as you get rid of the government cash....
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The president has proposed a freeze on some domestic spending, but the freeze will impact only a small portion of the budget, would not kick in until next year, and would include a mix of spending cuts and spending increases. It would have zero impact on the 2010 deficit and little impact on future...
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Fannie and Freddie = Rat Holes
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Coming Soon: The Bill for the Massive U.S. Debt
Americans could be in for a rude awakening in coming months when they discover the true scope of the massive national debt racked up by the U.S. government.
In fact, the $1.6 trillion deficit expected for 2010, which is above 10% of gross domestic product (GDP), is...
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Don’t we all wish we live like that? Folks, it is simple why Gold and Silver are rising. It is because of sovereign debt default concerns. How can the US and the UK finance growing these record budget gaps when spending is increasing and tax receipts are stagnant? And as we mentioned in previous...
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