fiscal
Rudd Predicts `Orderly Restructuring’ of Greek Debt
June 17 (Bloomberg) — Roland Rudd, senior partner at public relations firm Finsbury Ltd., discusses the euro-zone debt crisis.
He talks with Maryam Nemazee on Bloomberg Television’s “The Pulse.”
Duration : 0:4:52
National Debt
www.MothersAgainstDebt.com The debt we are leaving our children is fiscal child abuse. Since we made this video, debt per citizen has risen more than $1700 to $41,869 according to the US Debt Clock. To find out more about what we are doing to our children and how to stop it, visit MothersAgainstDebt.com. “Government, we’ve got our eye on you!”
Duration : 0:0:40
I.O.U.S.A.: Byte-Sized – The 30 Minute Version
By now, you may have heard about our acclaimed documentary I.O.U.S.A., a film that boldly examines the rapidly growing national debt and its consequences for the United States and its citizens. The film has been a huge hit, getting rave reviews from Roger Ebert and others.
Now, we proudly release a 30-minute condensed version of I.O.U.S.A. designed specifically for watching and sharing on the web – for free.
So if you haven’t had a chance to see the movie yet, watch the condensed I.O.U.S.A. today. If you’ve already seen it in a theater, check out the abbreviated version for a refresher. Then, tell your friends, your family, your Facebook friends and your Twitter followers about the staggering amount of money – $53 trillion – in financial obligations owed by the federal government to foreign investors and to every single American in the form of pensions, health benefits, Social Security and Medicare.
Then, visit http://www.IOUSAtheMovie.com and join us in our Fiscal Wake-Up Movement. Together, we can make American fiscal responsibility a reality.
You can now own I.O.U.S.A. on DVD! The newly released DVD, with 125 minutes of bonus material, now enables even more concerned citizens to learn about the state of our countrys finances and take action!
Available at a local retailer or online at http://www.shoppbs.org/product/index.jsp?productId=3445713 and at http://www.amazon.com/i-o-u-s-David-Walker-Peterson-Foundation/dp/B001P9G3HE/ref=pd_bbs_1?ie=UTF8&s=dvd&qid=1239048356&sr=8-1
Duration : 0:32:35
China won’t Finance U.S. Debt; We Hate You…you are devaluing your Dollar! Hyperinflation Collapse?
Who will finance our debt? Who has confidence in the fiscal responsibility of the U.S. congress? Will our dollar collapse, and if it does, what will be the consequence of such a collapse? I don’t know the answers to these questions, but I do know one thing, and that is that I hate my government; they are corrupt, right down to the bone. The corruption is cancerous, so drastic steps must be taken; they must be replaced in their entirety.
jbranstetter04
Why do Japan and China keep on buying dollars?
The dollar has fallen about twenty percent against the Euro in the last year but China and Japan continue to accumulate large dollar surpluses. At the same time, many economists worry that they will dump their holdings, sending the dollar into a free fall.
Michael Dooley, Peter Garber, and David Folkerts-Landau suggest that this financial policy is no accident. They view the Chinese and Japanese as pursuing deliberate full employment policies. They buy and hold dollars, not as an investment, but rather to subsidize their own exports. Read this summary of the argument, or buy an NBER working paper here. Garber puts the point bluntly:
http://www.marginalrevolution.com/marginalrevolution/2004/01/why_do_japan_an.html
China is right to have doubts about who will buy all America’s debt
Chinese doubts about the value of US Treasury bonds highlight a crucial question: who will buy the estimated $2.7 trillion (£1.9 trillion) to $4.2 trillion of debt expected to be issued over the next two years?
With annual foreign purchases accounting for less than a tenth of the low end of that range, and domestic investors unable to bridge the gap, the Chinese are right to worry.
Yu Yongding, former adviser to the Peoples Bank of China, recently demanded guarantees for the value of Chinas $682bn of Treasury securities. Then Luo Ping, director of the China Banking Regulatory Commission, said that China had misgivings about the US economy, but despite this it would continue to buy Treasuries. The two statements appear designed to raise the issue non-confrontationally before new chief US diplomat Hillary Clintons visit to Beijing on February 20.
China worries about the dollars value against other currencies, particularly the yuan. With US interest rates so low, the dollars value may slide. However, President Barack Obama has repeatedly said he wants a strong dollar, and indeed its trade-weighted value rose 13.9pc between April and December 2008.
The other area of concern for China is the value of its Treasuries. Given the US borrowing requirement and its lax monetary policy, Treasury bond yields could well rise sharply, causing a corresponding price decline. If Chinas holdings match Treasuries average 48-month duration, then a 5pc rise in yields, from 1.72pc on the 5-year note to 6.72pc, would lose China 17.5pc of its holdings value, or $119bn.
Foreign buyers have absorbed a little over $200bn of Treasuries annually, a useful contribution to financing the $459bn 2008 deficit, but only a modest help towards the $1.35 trillion minimum average deficit forecast for 2009 and 2010.
Unless that changes substantially, there will be $1trillion annually to be raised by the Treasury from domestic sources, more than double the previous record from domestic and foreign sources together, plus whatever is needed to bail out the banks.
Even if the US savings rate were to rise from zero to its long-term average of 8pc of disposable personal income, that would create only an additional $830bn of savings — not enough to fund the domestic share of the deficit. Interest rates would probably have to rise substantially to pull in more foreign investors.
Yu is right to worry.
http://www.telegraph.co.uk/finance/breakingviewscom/4611408/China-is-right-to-have-doubts-about-who-will-buy-all-Americas-debt.html
Duration : 0:3:37
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