Our Debts & Inflation: $380,000 - $1,037,000 Per Person, China, Bill Gross, Inflation as Tax, Borrow Long

April 14th, 2009 · No Comments

Bill-Coppedge27sep08-1 original content selection by MortgageNewsClips.com

Observations On The U.S. Debt - by Tyler Durden - Some observations on the total U.S. debt (the number are conservative) without commentary. The total is subject to interpretation and the probabilistic treatment of contingent liabilities and guarantees as well as the netting of derivative notionals. Total US Debt so far: $115 - $315 Trillion dollars? (excluding/including derivatives notional) $380,000 - $1,037,000 per person.
The break out:
- $9.7 Trillion in bailouts
- $11 Trillion in national debt
- $17 Trillion in corporate/financial debt, and $13.8 Trillion in household debt
- $1 Trillion in credit card debt
- $10.5 Trillion in mortgages
- $52 Trillion in social security/medicare obligations
 
goes into further detail at Zero Hedge

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nytlogo153x23

 China Slows Purchases of U.S. and Other Bonds - KEITH BRADSHER - Reversing its role as the world’s fastest-growing buyer of United States Treasuries and other foreign bonds, the Chinese government actually sold bonds heavily in January and February before resuming purchases in March, according to data released during the weekend by China’s central bank. - NY Times

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bloomberg

Gross Raises U.S. Debt Holdings to Highest Since 2007 - By Dakin Campbell - Bill Gross, manager of Pacific Investment Management Co.’s $144 billion Total Return Fund, increased his holdings of U.S. government debt to 28 percent in March, the highest percentage in almost two years. -  Bloomberg 
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rcp

Magic Words in Politics - Thomas Sowell - China is the largest foreign holder of U.S. government bonds. … China has been selling some of its U.S. government bonds this year.  The Chinese are no fools. They know … that inflation is coming. …  Inflation also means that all the talk about how higher taxes will be confined to “the rich” is nonsense. Inflation is a hidden tax that takes away the value of money held by everyone at every income level. … -   Real Clear Politics  - so inflation will s*rew the other 95% - BC

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wash-post

Structuring the Treasury’s Bet For a Long-Term Payoff - By Allan Sloan - … The U.S. Treasury should do some fancy financial dancing that would hurt taxpayers today but would save tons of money for taxpayers in the future.  How could the government do that? By borrowing as much money as it can by selling long-term Treasury securities before the financial world comes to its senses and rates rise, rather than continuing to sell shorter-term securities that save us interest today … - Washington Post




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