Foreigners Are Dumping U.S. Debt At A Record Pace And Our $20 Trillion National Debt Is
Poised To Become A Major Crisis
By Michael Snyder.
While most of the country has been focused on the inauguration of Donald Trump, a very
real crisis has been brewing behind the scenes. Foreigners are dumping U.S. debt at a faster
rate than we have ever seen before, and U.S. Treasury yields have been rising. This is
potentially a massive problem, because our entire debt-fueled standard of living is dependent
on foreigners lending us gigantic mountains of money at ultra-low interest rates. If the
average rate of interest on U.S. government debt just got back to 5 percent, which would
still be below the long-term average, we would be paying out about a trillion dollars a year
just in interest on the national debt. If foreigners keep dumping our debt and if Treasury
yields keep climbing, a major financial implosion of historic proportions is absolutely guaranteed
within the next four years.
One of the most significant aspects of the �Obama legacy� is the appalling mountain
of debt that he has left behind. As I write this article, the U.S. national debt is sitting
at 19.944 trillion dollars. During Obama�s eight years, a staggering 9.3 trillion dollars
was added to the national debt. When you break that number down, it comes to more than a
hundred million dollars every single hour of every single day while Obama was living
in the White House. In just two terms, Obama added almost as much to the national debt
as all of the other presidents before him combined.
What Obama and the members of Congress that cooperated with him have done to future generations
of Americans is beyond criminal.
Unfortunately, hardly anyone is talking about this right now, but the consequences are about
to start catching up with us in a major way.
The only possible way that our game of �borrow, spend and stick future generations with the
bill� can continue is if the rest of the world participates. In other words, we need
them to continue to buy our debt.
Unfortunately for us, a major shift is now taking place. According to Zero Hedge, the
most recent numbers that we have show foreigners dumping more than 400 million dollars of U.S.
debt over the past 12 months�
The wholesale liquidation of US Treasuries continued in November, when according to the
just released TIC data, foreign central banks sold another $936 million in US paper in November
2016, which due to an offset of $892 million in buying one year ago, means that for the
12 month period ended November, foreign central banks have now sold a new all time high of
$405 million in the past 12 months, up from a record $403 million in LTM sales as of one
month ago.
This isn�t a catastrophic emergency just yet, but if we continue down this road we
will eventually get there. The only way that the U.S. government can continue on with business
as usual is if it can continue to borrow billions upon billions of dollars at ultra-low interest
rates. Now that Treasury yields are rising, some people are beginning to get quite nervous�
As we pointed out one month ago, what has become increasingly obvious is that both foreign
central banks, sovereign wealth funds, reserve managers, and virtually every other official
institution in possession of US paper, is liquidating their holdings at a disturbing
pace, something which in light of the recent surge in yields to over 2 year highs, appears
to have been a prudent move.
In some cases, like China, this is to offset devaluation pressure; in others such as Saudi
Arabia and other petroleum exporting nations, it is to provide the funds needed to offset
the drop in the petrodollar, and to backstop the country�s soaring budget deficit. In
all cases, it may suggest concerns about a spike in future debt issuance by the US, especially
now under the pro-fiscal stimulus Trump administration.
Someday historians are going to look back in horror at what took place during the Obama
years.
The amount that was added to the national debt during his years comes to �approximately
$75,129 for every person in the United States who had a full-time job in December�. There
is no possible justification for this. But because there haven�t been any catastrophic
consequences so far, most people assume that this theft from future generations of Americans
must be okay.
In a previous article, I explained that government debt greatly stimulates the economy. If we
had not borrowed and spent 9.3 trillion dollars over the past eight years, we would be in
the worst economic depression in U.S. history right now.
But most people don�t understand this. They don�t get the fact that we are living way,
way above our means. And they also don�t get the fact that the only way that Donald
Trump can keep the party going is to borrow and spend just like Obama was doing.
And even with all of Obama�s recklessness, he was still the only president in all of
U.S. history not to have a single year when U.S. GDP grew by at least three percent. The
following comes from the Hill�
Despite the trillions of dollars in government spending pumped into the economy every year
under Obama, America has never once enjoyed an annual GDP growth rate at 3 percent or
higher, making Obama the least successful president�at least when it comes to economics�in
modern history.
A historically sluggish GDP isn�t the only concern worth mentioning. Under Obama�s
tenure, average annual food stamp enrollment has risen by more than 15 million (compared
to 2008). The home ownership rate is the lowest it has been since 1995, the earliest year
provided in the U.S. Census Bureau�s most recent report. The Bureau of Labor Statistics
reports more than 590,000 Americans say they are not in the labor force because they are
discouraged, a figure that�s 26 percent higher than even the worst annual average
under George W. Bush. Additionally, the employment-population ratio has been continuously below the 60-percent
threshold under Obama; the last time it was this low was 1985.
Now that Donald Trump is president, he is going to have some very hard choices in front
of him.
If Donald Trump and the Republicans stop borrowing and spending so much money, the economy will
immediately start suffering.
But if they do continue down the same path that Obama put us on, it is a recipe for national
suicide.
So either we take our medicine now, or we risk completely destroying the bright future
that our children and grandchildren were supposed to enjoy.
For more infomation >> Mercedes-Benz E-Klasse Cabrio 350 CGI ELEGANCE AMG|2010|83.000Km|Navigati - Duration: 0:41. 
For more infomation >> YES WE CAT: Maternidade com Mãe Solo e Hel Mother - Duration: 12:05. 
For more infomation >> Mercedes-Benz E-Klasse 220 CDI CLIMA/ NAVI / AUTOMAAT - Duration: 1:18. 
For more infomation >> Citroën C1 1.0 E-VTI CABRIOLET AIRSCAPE FEEL * AIRCO * - Duration: 0:54. 
For more infomation >> Peugeot 308 SW ACTIVE 1.2 E-HTP 110PK * CLIMA * NAVI * LMV * - Duration: 0:51. 
For more infomation >> Come posso prenotare l'interprete? - Duration: 8:11. 
For more infomation >> Dagli sviluppatori | Cattura la bandiera (sottotitoli in italiano) - Duration: 11:27. 
For more infomation >> HIIT – EXERCICIOS FEITOS EM CASA PARA PERDER BARRIGA RAPIDO! Treino HIIT Para Perder Barriga Rápido! - Duration: 6:50. 
For more infomation >> Autoridades do Piauí homenageiam Oeiras pela adesão à independência - Duration: 9:25. 
For more infomation >> COMO AUMENTAR OS GLUTEOS – Treino Para AUMENTAR o BUMBUM Em Casa! Exercícios Para Aumentar Glúteos - Duration: 2:28. 
For more infomation >> ★ How quick cure a cold. How to get rid of nasal congestion. Proven ways. - Duration: 2:48. 
For more infomation >> 農曆新年的心聲 - Duration: 3:24. 
For more infomation >> Как выбрать косметолога лайфхак от интернет - маркетолога - Duration: 5:16. 
For more infomation >> La Bella e la Bestia- - Duration: 4:20. 
For more infomation >> la bella e la bestia - Duration: 0:43. 
For more infomation >> La BELLA E LA BESTIA - Duration: 2:34. 
For more infomation >> The Mick On FOX
For more infomation >> Renault Clio TCe90 Dynamique R-LINK | CAMERA | 17" LM VELGEN - Duration: 1:01. 
For more infomation >> Renault Mégane Estate TCe130 GT-Line *R-Link 2 + BOSE / Pack Easy - Duration: 1:01. 
For more infomation >> Don't Call Matthew McConaughey 'Matt' - Duration: 1:20. 
For more infomation >> Volvo S60 2.0T 180PK SPORTS EDITION - Duration: 1:30. 
For more infomation >> Faith Camp 2017 - Duration: 1:00. 
For more infomation >> Appareil anti-rides visage : comparatif avant après avec NewaColashood2 - Duration: 9:07. 
For more infomation >> హాట్ ఫోటో షూట్ లో దర్శనం ఇచ్చిన భూమిక చావ్లా / Bhumika Chawla hot and raunchy photo shoot - Duration: 2:47. 
No comments:
Post a Comment