FT.com / US / Economy

FT.com / US / Economy & Fed – Foreign demand falls for Treasuries

Here’s a dangerous portend of things to come.  As our debt mounts and the government continues to print money thereby making the dollar valuable, countries that have invested in the United States as a “sure thing” are taking a second look. This lessened demand will catch up with us in the form of inflation that will surpass the Carter years if the hapless spending of this administration continues.  This is not to say that the previous administration is without fault.  However, Barrack Obama wins the “prize” for a seemingly unconscious spending spree that has never been witnessed in the history of this country.  And there seems that there is no let up in sight.  The latest move by the administration is to create a panel that will perform an “independent” study of solutions to achieve some balance in the budget.  The administration goes on to say that recommendation by the panel should not be blamed on the president, who vowed during his campaign not to raise taxes on Americans earning less than $250,000.  The president will not sit on the commission and the options they present will not necessarily reflect administration policy, according to White House officials.  Wow, what a perfect scheme to get what he wants, so he thinks.  Of course the commission will recommend that either spending is cut or taxes are raised.  Since the politicians in Washington have no stomach for restraint the only alternative will be to raise taxes.  This will all be done without blaming Obama since it will be the recommendation of this pseudo commission.  Of course this is why many Republicans are skeptical of the panel and do not want to participate unless tax increases are off the table.  You’ll never hear this in the main stream media however.

When are the population and the politicians going to begin to show some restraint?  I’m not an economist but it doesn’t take much of an intellect to realize that we are on a dangerous course.

Joepf

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