Tag Archives: National Debt

Moneynews – Professor: Huge Deficit Will Cause Dollar to Collapse

The federal deficit may soon cause a “collapse” of the dollar, Stanford University economics professor Scott S. Powell writes. In an opinion piece in The New York Post, Powell notes that the ratings agency Fitch just cut Portugals bond rating to AA negative — a clear sign that the insolvency crisis that began in Greece is far from over. “And dont think its merely a problem for the European Union. In fact, a debt-driven collapse of the dollar may be closer than most Americans realize,” he writes. Before the government bank bailouts, gross federal debt was 70 percent of gross domestic product GDP. “Its now estimated at about 90 percent of GDP. Add in the $1.6 trillion debt liability of Fannie Mae and Freddie Mac, and were already at that 100 percent debt-to-GDP tipping point,” writes Powell. “No, the United States isnt Greece: For a host of reasons, we can probably get away with higher debt. But our problem is about to grow worse.”Right now, low interest rates make federal borrowing seem cheaper than it actually is — because those interest rates wont stay at zero forever.“And when rates head back to normal, Uncle Sams borrowing costs could easily double. We spend 11 percent of the current budget — $382 billion — on debt service; that could rise two- or three-fold to more than $800 billion, warns the CBO,” says Powell. Adding to the pressure on the dollar — inflation related to new job creation once the economy really starts to expand, reports CNNMoney.© Moneynews. All rights reserved.

via Moneynews – Professor: Huge Deficit Will Cause Dollar to Collapse.

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Filed under Barack Obama, Budget, Capitalism, Congress, DEFICIT, Deflation, Dollar, Economic Collapse, Economics, Entitlements, Government Spending, Inflation, Jobs, Liberals, National Debt, Organized Labor, Progressives, Sovereign Debt, Stimulus, Taxation, Treasury Bills, Treasury Bonds, United States of America

The Chinese Central Banker Tells Obama Not To Expect China To Save Him

Some strategists are betting that China will hike the yuan in April…

But then, in response to Obama’s most recent call for a yuan hike, a Chinese central banker has come out and said this:

WSJ:

“We believe the yuan exchange rate issue will not help shrink or increase our trade surpluses and deficits (in the U.S. or China),” Mr. Su said on the sidelines of the meeting of the National People’s Congress.

“We don’t agree with politicizing the renminbi exchange rate issue,” Mr. Su said. “We also don’t agree with a country taking its own problems and having another country solve them.”

Keep in mind this is the man who famously said China’s U.S. treasury holdings were unsafe last year.

As George Soros has pointed out in the past, it might be best to act as if China doesn’t like to be told what to do. They’ll hike the yuan if its in their interest and that’s it. So the U.S. needs to show them how it is in their interest if the U.S. wants it to happen.

via The Chinese Central Banker That Loves To Scare America Tells Obama Not To Expect A Yuan Hike To Save Him.

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Filed under Barack Obama, China, DEFICIT, Economic Collapse, Economics, Federal Reserve, Government Spending, IMF, Progressives, United States of America, World News

Paul (TX14) – Press Releases – Congressman Paul Returns Over $100,000 to Treasury

For Immediate Release

March 1, 2010

Congressman Paul Returns Over $100,000 to Treasury

Washington, D.C. – Congressman Ron Paul has continued to run his Congressional office in a frugal manner, and was able to return more than $100,000 from his allotted office budget to the Treasury this year, an increase over the $90,000 returned last year.

“Since my first year in Congress representing the 14th district I have managed my office in a frugal manner, instructing staff to provide the greatest possible service to the people of the 14th district at the least possible cost to taxpayers,” said Paul.

via Paul (TX14) – Press Releases – Congressman Paul Returns Over $100,000 to Treasury.

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I SOOO LOVE THIS!  We need more elected officials to cut their spending! On a sad note,the 100k Returned by Congressman Paul will only cover 2/3 of the money Speaker Pelosi spent last year for BOOZE on the government jet she uses to shuttle herself and her family (sometimes just her family) to and fro from California.

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Filed under Budget, Economics, Government Spending, United States of America