http://www.sprott.com/Docs/MarketsataGlance/12_2009_MAAG.pdf
...to summarize, the majority buyers of Treasury securities in 2009 were:
1. Foreign and International buyers who purchased $697.5 billion.
2. The Federal Reserve who bought $286 billion.
3. The Household Sector who bought $528 billion to Q3 – which puts them on track
purchase $704 billion for fiscal 2009.
These three buying groups represent the lion’s share of the $1.885 trillion of debt that was issued by the US in fi scal 2009. We must admit that we were surprised to discover that “Households” had bought so many Treasuries in 2009. They bought 35 times more government debt than they did in 2008. Given the financial condition of the average household in 2009, this makes little sense to us. With unemployment and foreclosures skyrocketing, who could afford to increase treasury investments to such a large degree?
Amazingly, we discovered that the Household Sector is actually just a catch-all category. It represents the buyers left over who can’t be slotted into the other group headings. For most categories of financial assets and liabilities, the values for the Household Sector are calculated as residuals.
Showing posts with label money. Show all posts
Showing posts with label money. Show all posts
Friday, January 8, 2010
Thursday, January 7, 2010
Tuesday, November 24, 2009
Wave of Debt Payments Facing US Government
http://www.cnbc.com/id/34104722
Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.
In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.
Americans now have to climb out of two deep holes: as debt-loaded consumers, whose personal wealth sank along with housing and stock prices; and as taxpayers, whose government debt has almost doubled in the last two years alone, just as costs tied to benefits for retiring baby boomers are set to explode.
An increase of one percentage point in the Treasury’s average cost of borrowing would cost American taxpayers an extra $80 billion this year — about equal to the combined budgets of the Department of Energy and the Department of Education.
Treasury officials estimate that about 36 percent of the government’s marketable debt — about $1.6 trillion — is coming due in the months ahead.
Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed.
In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan.
Americans now have to climb out of two deep holes: as debt-loaded consumers, whose personal wealth sank along with housing and stock prices; and as taxpayers, whose government debt has almost doubled in the last two years alone, just as costs tied to benefits for retiring baby boomers are set to explode.
An increase of one percentage point in the Treasury’s average cost of borrowing would cost American taxpayers an extra $80 billion this year — about equal to the combined budgets of the Department of Energy and the Department of Education.
Treasury officials estimate that about 36 percent of the government’s marketable debt — about $1.6 trillion — is coming due in the months ahead.
Thursday, July 2, 2009
Congress's Travel Tab Swells
http://online.wsj.com/article/SB124650399438184235.html
"The spending on overseas travel is up almost tenfold since 1995, and has nearly tripled since 2001, according to the Journal analysis of 60,000 travel records. Hundreds of lawmakers traveled overseas in 2008 at a cost of about $13 million. That's a 50% jump since Democrats took control of Congress two years ago."
"The congressional trips are possible thanks in part to an unlimited fund created by a three-decade old law. Nearly two dozen government officials work full-time organizing the trips. Much of the costs are not made public, including the cost of flying on government jets. The Air Force maintains a fleet of 16 passenger planes for use by lawmakers."
"Last summer, Rep. Brian Baird (D., Wash.) took a four-day trip to the Galápagos Islands with his wife, four other lawmakers and their family members. The lawmakers spent $22,000 on meals and hotels, records show. Mr. Baird, a member of the House Science Committee, said the trip was to learn about global warming.
On the first day, lawmakers toured a breeding center for giant tortoise and land iguanas before dining with scientists, according to an itinerary for the trip. The next morning, lawmakers headed to the Galápagos National Park while their family members had the option of hiking, swimming or shopping. That afternoon, the group boarded a boat to visit a sea-lion colony and search for white-tip sharks."
"The spending on overseas travel is up almost tenfold since 1995, and has nearly tripled since 2001, according to the Journal analysis of 60,000 travel records. Hundreds of lawmakers traveled overseas in 2008 at a cost of about $13 million. That's a 50% jump since Democrats took control of Congress two years ago."
"The congressional trips are possible thanks in part to an unlimited fund created by a three-decade old law. Nearly two dozen government officials work full-time organizing the trips. Much of the costs are not made public, including the cost of flying on government jets. The Air Force maintains a fleet of 16 passenger planes for use by lawmakers."
"Last summer, Rep. Brian Baird (D., Wash.) took a four-day trip to the Galápagos Islands with his wife, four other lawmakers and their family members. The lawmakers spent $22,000 on meals and hotels, records show. Mr. Baird, a member of the House Science Committee, said the trip was to learn about global warming.
On the first day, lawmakers toured a breeding center for giant tortoise and land iguanas before dining with scientists, according to an itinerary for the trip. The next morning, lawmakers headed to the Galápagos National Park while their family members had the option of hiking, swimming or shopping. That afternoon, the group boarded a boat to visit a sea-lion colony and search for white-tip sharks."
Wednesday, March 25, 2009
Daniel Hannan: "You have run out of our money"
http://www.youtube.com/watch?v=94lW6Y4tBXs
I am simply blown away. Why aren't their more politicans like this! Why aren't their more men with integrity, honor, and character? Obama's supposed oration talent pales in comparison to this. This is straight shouting, no non-sense talk. This is what people want from their politicians. That is what our country needs.
I am simply blown away. Why aren't their more politicans like this! Why aren't their more men with integrity, honor, and character? Obama's supposed oration talent pales in comparison to this. This is straight shouting, no non-sense talk. This is what people want from their politicians. That is what our country needs.
Friday, March 20, 2009
Glenn Beck: Last Line of Defense
http://www.glennbeck.com/content/articles/article/198/22954/
Ok, so we are robbing Peter to pay...Peter, got it!
Note:
Glenn mentioned Zimbabwe as a case study for inflation. I found this informative, but rather long study called "A Decade of Suffering in Zimbabwe" done by the Cato Institute so you know it's good. Truthfully, I just skimmed it, but when I have more time I'd like to read it more in depth. For those of you that are interested:
http://www.cato.org/pubs/dpa/dpa5.pdf
Ok, so we are robbing Peter to pay...Peter, got it!
Note:
Glenn mentioned Zimbabwe as a case study for inflation. I found this informative, but rather long study called "A Decade of Suffering in Zimbabwe" done by the Cato Institute so you know it's good. Truthfully, I just skimmed it, but when I have more time I'd like to read it more in depth. For those of you that are interested:
http://www.cato.org/pubs/dpa/dpa5.pdf
Subscribe to:
Comments (Atom)