How bad is this crisis of confidence? US GOVT CREATES WEALTH BY BORROWING... you get back less than you lend us, but it's safe
Dec. 9 (Bloomberg) -- Treasuries rose, pushing rates on the three-month bill negative for the first time, as investors gravitate toward the safety of U.S. government debt amid the worst financial crisis since the Great Depression.
The Treasury sold $27 billion of three-month bills yesterday at a discount rate of 0.005 percent, the lowest since it starting auctioning the securities in 1929. The U.S. also sold $30 billion of four-week bills today at zero percent for the first time since it began selling the debt in 2001.
Thus on $10,000 you'll lose $50 per year, but it's safe. On the other side of the ledger, if we (the USA) borrows the entire astronomical sum of a couple of trillion, the US taxpayer can make about $1 BILLION on that amount.
We pay you back less than we borrow as a nation, but it's OK because you can sleep at night knowing it will only deflate .005%?
This is because no one anywhere has any confidence in anything not the US govt - which PS has the approval in aggregate of about 28% of the US people.
Barack Obama and his appointees had better have a clue, and Republican actions had better be founded in the people's interest, and well explained.
But meanwhile, the Al Saud and Al Sabah will have to give us the dough to keep it safe while we make money on it for doing so.
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