The US Is Running Out Of Financial Backers
With US spending out of control the crazy politicians apparently thought there was no end to the amount of money the US could print. They had a pretty good deal going. Rack up a lot of debt and then sell it any country willing to buy.
Zhu Min issued a wake up call letting the US know the world doesn’t have enough money to buy all the US debt. The government is trying to save our economy, but they themselves are in massive debt and spending more and more money with no end in site. How can the bankrupt government help save an economy it has contributed in making worse?
The government needs to step out and let the real thinkers and doers do what needs to be done. I think it should be obvious to everyone that the government doesn’t know what to do to fix anything. The government is made up of people whose soul job is to get reelected regardless of the cost to our country.
The effect this has on the financial markets will be more of what we have seen in the past. The US dollar will continue to weaken and the markets will fall again providing opportunity to short.
Bank Of China Official: The World Is Running Out Of Money To Buy US Debt
Here’s a stark warning to Barack Obama and Tim Geithner, courtesy of Zhu Min, deputy governor of the People’s Bank of China.
ShanghaiDaily: IT is getting harder for governments to buy United States Treasuries because the US’s shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.
The comments by Zhu Min, deputy governor of the People’s Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds.
Strictly speaking, this shouldn’t be a problem. Foreigners don’t technically fund our Federal deficit — what they fund is our current accounts deficit, and if that’s shrinking then the need to fund that debt diminishes. –more
Related Financial crisis articles
- Suddenly, safe haven Treasurys get tricky (money.cnn.com)
- White House backs health care deal, sees victory (nationalpost.com)
- Dollar decline continues: New 14-month low vs euro (sfgate.com)

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