Foreigners Own Half US Debt
crystalline gold nugget
Gold investments … facts to consider:
Foreigners own roughly half of the US government’s publicly traded debt, or $3.47 trillion, representing nearly 25% of the size of the US economy, the highest level in history. If foreign lenders were to significantly reduce their purchases of US Treasury notes, without even dumping their current holdings, US long term interest rates could zoom higher, and the US dollar could crumble.
Jassem al Mannai, chief of the Abu Dhabi based Arab Monetary Fund said: “America, through this financial crisis, is accumulating a huge amount of debt. It’s a heavy burden on the US dollar. You have China and Russia proposing an international reserve currency other than the US dollar. These developments could affect negatively the dollar, and you cannot just ignore them.”
Chinese PM Wen Jiaboa said: “We have lent a massive amount of capital to the United States, and of course we are concerned about the security of our assets. To speak truthfully, I do indeed have some worries. So I call on the United States to maintain its creditworthiness, and abide by its commitments and insure the security of China’s assets. We have already adopted a management policy of diversifying our ($2 trillion) foreign exchange reserves.”
The US debt in the hands of foreign governments is 25% of the total, virtually double the 1988 figure of 13%. Despite the declining willingness of foreign investors to continue investing in US-dollar–denominated instruments as the US Dollar has fallen in 2007, the U.S. Treasury statistics indicate that, at the end of 2006, foreigners held 44% of federal debt held by the public. About 66% of that 44% was held by the central banks of other countries, in particular the central banks of Japan and China. In total, lenders from Japan and China held 47% of the foreign-owned debt.
Prospecting Equipment
At some point, the dollar will collapse and interest rates will go up sharply…it has to because foreigners will dump our dollars and our treasuries and will only be enticed to buy them again when they get rewarded for their risk…the mkts set the interest rates and not the Feds…I gaurantee you will interest rates will go up when foreigners wake up and stop buying our debt.
Silver coin
COMEX gold is being maniuplated by the Fed through a couple bullion banks.
They are doing a fine job of keeping gold down and everyone flooding into it.
But, eventually gold is up because even the Fed will eventually use it to cut the US debt in half or more by revaluing gold to the dollar. Only, they will do it when they feel it is time to do it.
Until then, gold will be stuck in the range of 750 to 900 dollars. Unless, Chinese or middle eastern folks take advantage of golds low price and start buying it on the COMEX with the intention of taking delivery.
Then the game will be over for manipulation by the Fed.
So, either the Fed will eventually cause the price of gold to go to four figures on their time table or some foreign entity will get into the game before that happens to keep from loosing dollars when the Fed does it.
Crystalline gold