OT: Price fixing by the oil refineries?

wrote:


If rates for TREASURIES double, that would increase costs by around $250 billion. That's about 7% of the budget. Is that a problem? It depends on what you do with two wars and a defense budget that could eat Ohio.
Are you predicting a doubling of the interest rate on Treasuries? And, if so, why?
--
Ed Huntress



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On Wed, 18 May 2011 17:44:22 -0400, "Ed Huntress"

==========The problem is that while the FRB can set the interest rate any where they wish, Uncle Sam can only borrow money at rates the bond market dictates, except for the forced purchase by the "trust funds" at below market rates.
Internationally, (although this only works for domestically held funds), a frequently used ruse to force the purchase of dodgy government bonds [and operationally expropriate the capital] is to dictate that a [increasing] per cent of reserve funds held by banks, pension funds, insurance companies, and other institutions, must be government bonds [for safety :-<].
-- Unka George (George McDuffee) .............................. The past is a foreign country; they do things differently there. L. P. Hartley (1895-1972), British author. The Go-Between, Prologue (1953).
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I have thought about that. That last thing I'm going to invest in would be treasuries that are redeamed with inflated printed money.
I was too late for silver and gold but in time for guns and ammo.
On a serious note, who has the money to loan us? Where did they get it, what does their balance sheet look like? Are they other nations printing money so we are borrowing imaginary money so rubes like me won't realize what is happening?
Wes
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wrote:

Countries who run a mercantilist economic policy and who need a place to stick their trade surpluses: China (7.5% of US national debt [public debt]) and Japan (6.4%) are well known. The UK holds 3.4% of our debt, and Canada has just moved somewhere into the top ten. But foreign holdings are only a fraction of the public debt: around 32% of it, actually.
42.2% is owned by private US individuals and institutions. And a lot of the total public debt -- something like 26% -- is really money we owe to ourselves, in various government accounts. For example, Social Security, which we have beaten to death here; military and civil service retirement funds.

Wes, those are good and penetrating questions. The money is real money, as far as I know.
Here's a general breakdown of categories of owners of the national debt:
http://www.fms.treas.gov/bulletin/b2011_1ofs.doc
This is a tedious series of pages you have to scroll through, but it contains little explanations that are useful:
http://www.cnbc.com/id/29880401/The_Biggest_Holders_of_US_Government_Debt
Here's a quick-and-dirty pie chart that's repeated all over the Web. It's not easy to read:
http://www.mygovcost.org/wp-content/uploads/2011/01/who-owns-us-national-debt-30-sept-20101.png
If you need more, just ask. There are country-by-country breakdowns available from Treasury.
--
Ed Huntress



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On 05/17/2011 11:31 PM, F. George McDuffee wrote:

Kindly explain how a GOP minority in the Senate can kill any bill not requiring a supermajority vote?
technomaNge
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Pray for Obama
Psalm 109.8
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technomaNge wrote:

WASHINGTON -- A ceremonial vote over whether to end subsidies to major oil companies failed on Tuesday, with 45 Republicans and three Democrats voting to continue the tax incentives to the five largest oil companies.
Atlhough the 52-48 vote broke down mostly along party lines, Republican Sens. Olympia Snowe and Susan Collins of Maine split with the rest of the GOP to support the effort to repeal oil subsidies.
--

Richard Lamb
http://www.home.earthlink.net/~cavelamb
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Before you ding me, I know where my SSI and Medicare money went. I didn't have a choice. ;)
Wes
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