American Treasury Bills: Too Much of a Good Thing
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Harrison
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china Debt Democrats economy Liberals Obama Spending stimulus t billsBloomberg.com reports:
Treasuries were the worst performing sovereign debt market in 2009 as the U.S. sold $2.1 trillion of notes and bonds to fund extraordinary efforts to bolster the economy and financial markets.
This should be no surprise as President Obama and Democrats in Congress blew up the U.S. deficit in 2009 to an unprecedented $7.17 trillion. To get an idea as to how much more U.S. debt was sold on the markets:
The government sold $2.109 trillion of notes and bonds in 76 auctions in 2009 after selling $922 billion in 2008.
One thing that has helped Obama and the Democrats plunge America so much further into debt has been the fact that, despite the massive amounts of Treasury Bills already out there, they still remain the safest place to park one’s money however this fact is really a double-edged sword as that confidence allows the president to send the country more into debt knowing investors will buy the bills but, at the same time, we are seeing diminishing returns on further debt sales as the main buyers of this money, namely China, wonder how much more they can buy without sinking their own economy by tying it too closely to America’s.
There has been talk around Washington about a second stimulus package. With key players such as Nancy Pelosi saying they are in favor of it, betting on even more debt and Treasury sales seems like a sure thing.
The problem will be how much longer this type of mortgaging of America’s future go on?
The government has sent the American taxpayer $80,000.00 into debt thus far.
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10:25 AM
I’m curious where the $80,000 figure came from, and what period it covers. I’m not necessarily disputing it, just wondering what it represents. Also of course the increase in debt over the past year should be put into context against the increase in national debt during the Bush administration, and whether being in the worst recession since the 1930′s, as opposed to economic conditions during the Bush administration, justifies a greater increase in the national debt than Bush incurred. Recall that even Republicans were in favor of increasing the debt to deal with the recession, as the TARP program was put into effect by Secretary Paulson. Also Republicans were in favor of a stimulus, they just wanted to do it by tax cuts instead of increased spending on public works. But their proposals would have increased the debt substantially also.
.-= Joe Markowitz´s last blog ..Dawn Johnsen =-.
10:35 AM
Actually, $80,000.00 is a small number as it covers monies given for financial “bailouts” (which were begun under Bush) divided by the number of taxpayers. We are not really counting all of the money since like the “stimulus.”
Did Bush and his party do a bad job of acting like fiscal conservatives during his time in office? Yes and this is why I never voted for Bush, however the amount he sent us into the red pales next to what Obama and his party has done and all the spending bills for his last two years in office were done by the Democrats and they didn’t exactly restrain themselves, either.
And cutting taxes is slightly different than simply raising spending in that in the former you are giving money back to the people while in the latter you are simply creating more programs which will never die and will end up costing more money over time while still not giving the taxpayer relief. I would also argue that injecting that much pork into the economy delays economic recovery rather than ends it sooner. That’s why the great recession turned into the great depression.
12:14 PM
You are right on, The Bush deficit spending propelled us into this recession. The stimulus response which you correctly state was supported by the Bush administration. Yes the level of defecit spending is unsustainable but for the moment it is necessary to stimulate job creation. Jobs create demand and increased demand is the only thing that will start us back on an upward spiral. A realist will recognize that the Bush cabal left us in too deep of a hole, we are screwed no matter how we respond.
9:02 PM
You obviously haven’t spent much time reading articles on this site because I have never said anything of the sort. If anything, Obama’s policies are prolonging the recession.
2:29 PM
Joe, as a conservative, I am and was (when Bush was in office) totally opposed to Bailout Nation. But the notion that somehow tax cuts would sink us into an equivalent amount of debt that the current administration is, strains credulity.
“There has been talk around Washington about a second stimulus package. With key players such as Nancy Pelosi saying they are in favor of it, betting on even more debt and Treasury sales seems like a sure thing.”
aka Son of Porkulus. Because the statist solution to failed statist polices is more statism.
12:17 PM
You should have started screaming earlier……….it is too late!
12:12 PM
I wish I would know how to link. There’s an excellent blog “Rage against the Kakistocracy” which just put up a great post (Jan.7,2010): “Let’s not vote stupidly again in 2010.” Every voter should read it. This blog has no party allegiance except to the American Constitution. I’ll mention Just Politics…? to the blog writer. I think it’s important that everyone has a clear idea, and gets ready for the important 2010 votes.
5:37 PM
At USDebtClock.org the debt per taxpayer is $112,703 and counting. It also provides a number of other interesting figures. And while it is true to state that Republicans and Democrats are both responsible for lavish spending, the Democrats seemed to be setting themselves apart from the pack.
.-= theLibertyPen´s last blog ..Was the Market Rally Rigged? =-.