Fed Chairman Bernacke announced today that he would add another purchase of US Treasuries bringing the total to nearly $4 trillion. That is nearly double the same amount held by China and Japan and nearly as much as held by ALL foreign countries. The September 2012 report from the Treasury (source below) confirms that both of the two largest holders had $2.285 trillion invested in our "junk".
For years, we have heard that China is buying us lock, stock and barrel and before we know it, we will all have to be speaking Chinese. What a piece of malarkey! We have been sold a bill of goods and for one, Tom is tired of it. The reality is that China has been reducing its purchases over the past year, not greatly but the numbers have continued to fall.
Our government is on a spending binge that can only end the same way a drunken sailor's ends, bankrupt, penniless and in shambles. We cannot tax our way out and spending cuts necessary to achieve our goals would be met with universal protest. Folks, there is no way to solve the problem.
In the current crisis, the "leadership" in Washington will come up with some "fix" either before or after we go over the fiscal cliff. The problem is that it only will put a band-aid on a broken foot. We will continue to face financial problems until there is no longer a way out. Just like the drunk who promises that his ways have changed everything will be fine until he goes into the next bar which means the next budget plan by the government.
We, as a country, are spoiled. Our legislators have lavished generous plans on top of more benefits for years and now it has come time to pay for them and the cupboard is bare. ObamaCare, Medicare, Social Security, welfare, to name just a couple are drowning us. We need a major surgery and are willing only to take an aspirin.
It is time to prepare for the worst that your mind can conceive and then multiply it by ten! Think of the German economy in the 30's, that is where we are heading! It is not if, but when!
Conservative Tom
Here are the sources:
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt
http://finance.yahoo.com/news/fed-seen-pumping-assets-4-050000764.html
For years, we have heard that China is buying us lock, stock and barrel and before we know it, we will all have to be speaking Chinese. What a piece of malarkey! We have been sold a bill of goods and for one, Tom is tired of it. The reality is that China has been reducing its purchases over the past year, not greatly but the numbers have continued to fall.
Our government is on a spending binge that can only end the same way a drunken sailor's ends, bankrupt, penniless and in shambles. We cannot tax our way out and spending cuts necessary to achieve our goals would be met with universal protest. Folks, there is no way to solve the problem.
In the current crisis, the "leadership" in Washington will come up with some "fix" either before or after we go over the fiscal cliff. The problem is that it only will put a band-aid on a broken foot. We will continue to face financial problems until there is no longer a way out. Just like the drunk who promises that his ways have changed everything will be fine until he goes into the next bar which means the next budget plan by the government.
We, as a country, are spoiled. Our legislators have lavished generous plans on top of more benefits for years and now it has come time to pay for them and the cupboard is bare. ObamaCare, Medicare, Social Security, welfare, to name just a couple are drowning us. We need a major surgery and are willing only to take an aspirin.
It is time to prepare for the worst that your mind can conceive and then multiply it by ten! Think of the German economy in the 30's, that is where we are heading! It is not if, but when!
Conservative Tom
Here are the sources:
http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt
http://finance.yahoo.com/news/fed-seen-pumping-assets-4-050000764.html
