Obama said that while the U.S. dollar remained a haven because of U.S. economic and political stability, he cautioned that if the federal government didn’t reign in spending, foreign investors would stop purchasing U.S. Treasury Bills.
“The dollar is still strong because people are still buying Treasury Bills,” he said. “They still think that’s the safest investment out there.”
“If we don’t get a handle on this, and also start looking at our long-term deficit projections, at a certain point people will stop buying--those-- Treasury Bills,” he said.
Well, No S*#$, Sherlock!! The fact that he is just now seeing the fact that we can't print money out of thin air and not have to worry about foreign countries buying our debt is absurd. Why would it take this long for him to see it? His advisers are only telling him what they think he should know. Telling him what they think he should tell the American people. Of course they don't want to have him talking about Dollar weakness prematurely. That could spark a worldwide selloff, and that's the last thing they wanted. The fact that this is coming out now, though, is somewhat frightening, for the very reason I just stated. Now that it may be common knowledge (because the President said so) that we need to reign in spending because of the threat to the Dollar, that could be the spark for other countries to see this weakness and start selling their Treasuries. I spoke of this a few blogs ago, about this distinct possibility, and now it appears to be coming to fruition. Ugh.
The only good I see coming of this is that maybe it isn't too late, and this realisation is just hitting the public as a whole. Maybe there will be a way for people in power to stop the spending of money we don't have. Maybe... Oh, the times, they are a changin'.
Here's the full story from Bloomsberg:
http://www.bloomberg.com/apps/news?pid=20601087&sid=amI5dRA9njjE&refer=home
CZ
2 comments:
So who else is bracing for a $6 gallon of milk once inflation hits from all this "bailout" money that's been printed out of thin air?
I am. It sucks, but I think that's where we are headed this summer when the problems really start to make themselves known.
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