Rescue America by Chris Salamone

Author:Chris Salamone [Salamone, Chris]
Language: eng
Format: epub
ISBN: 978-1-60832-228-2
Publisher: Greenleaf Book Group
Published: 2012-09-15T00:00:00+00:00

On every scale, the news is bad. And the story of our era, it seems, is that we have managed to lose the country that was bequeathed to us.

TREASURY BOND SPREADS AND INTEREST RATES

As was said before, the danger is that the speed and frequency of the rate of increase in our bond spreads will be the most telling signs that our creditors have lost confidence in the U.S. capacity to meet its obligations. However, whether intended or not (you can decide that for yourself), the U.S. Treasury’s policy of printing money and then cannibalistically buying up our nation’s own bonds (i.e. the government prints money and then uses it to buy an IOU from itself) with our own new “invented money” means two things:

1. The interest spreads on U.S. bonds remain artificially stable, because we are among the creditors (buyers) on the demand side of the bonds.

2. If interest rates on the bonds shoot up anyway, it indicates actual creditor loss of faith in our financial credibility.

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