Get Your Wheel Barrels Ready

[BigRob]

Credit from whom and for how much longer?

Anyone who gives it for as long as we ask for it.

And we're totally screwed if we loose our AAA rating...

I think that is still a big "if."

 

[Mr. Shaman]

You have seen already agitation in China that job creation is not keeping up with demand. If the government cannot spur massive growth in China, I think their days are limited.....

Lemme guess....they need tax-cuts, right?


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[BigRob]

Lemme guess....they need tax-cuts, right?


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Do you ever have anything meaningful to say?

 

[GenSeneca]

Anyone who gives it for as long as we ask for it.

We're down to the Federal Reserve... China stopped buying our long term bonds and has drastically cut back on the 7 year bonds. China isn't alone in that financial move away from purchasing US debt.

I think that is still a big "if."

That "If" is getting smaller everyday...

If (its really more of a "when" since the voters turned down tax hikes) California debt becomes backed by the federal government, moodies has threatened to downgrade the California credit rating... I believe that would cascade across other states as they also looked to the Fed for a bailout and eventually bring about the decline of the federal credit rating.

 

[BigRob]

We're down to the Federal Reserve... China stopped buying our long term bonds and has drastically cut back on the 7 year bonds. China isn't alone in that financial move away from purchasing US debt.

True, but we recently had a big bond sale the other day (I forget the exact day but somewhat recently, like in the month or two month span) and we still managed to find buyers. China not buying our debt is not the end of the world. While I am not advocating spending tons of money in the manner we are, I do not necessarily think that the sky is yet falling because of it.

That "If" is getting smaller everyday...

If (its really more of a "when" since the voters turned down tax hikes) California debt becomes backed by the federal government, moodies has threatened to downgrade the California credit rating... I believe that would cascade across other states as they also looked to the Fed for a bailout and eventually bring about the decline of the federal credit rating.

Perhaps, time will tell. If it does happen, it is the end of US hegemony.