U.S. Lawmaker: Obama spending "staggering"

"A Republican lawmaker said U.S. President Barack Obama's first 100 days in office can be summed up with three words - "spending, taxing and borrowing."

Not "spending, taxing and borrowing" -- because China is not lending anymore via US treasuries -- more like "spending, taxing and printing more of the world's future banana currency"!

The bulk of bail-out allocations were decided upon before Obama assumed office.In November 2008 the Federal Goverment's rescue programme was estimated at $8.5 trillion equivelant to 65% of US GDP.

The latest budget Obama presented to US congress is predicting a budget deficit of $ 1.75 trillion ,almost 13% of US GDP.

The question arising is whether the US treasury will be in a position to finance this staggering deficit through Treasury bills and bonds.

Since interest rates are rock bottom the market for these debt instruments is at a standstill which means the US treasury will find it virtually imposiible to finance its debt through conventional means.

The next big question is whether China & Japan will continue to purchase US goverment debt.At present the US goverment is engaged in a PR exercise with Asian investors trying to persuade them into buying T-bills and Bonds.

If the above does't bear fruit the Treasury will probably have further cuts in public expenditure and increase taxes on the use of public services and also selling off public assets.

It is also possible the present crisis could lead
to the privatisation of state
activities which could precipitate a social crisis.

One thing is certain that the US cannot continue to create money with no value inefinitelly.This will lead to the collapse of the US dollar as an international currency.

Are you kidding me? That would be the best thing ever, although won't happen. Government just loves power. Wish it would cease to exist
(Milan, 3 May 2009 15:22)

You try to tell this to the 38 million Americans who are on food stamps and live below the poverty line.

"It is also possible the present crisis could lead
to the privatisation of state
activities which could precipitate a social crisis."
Are you kidding me? That would be the best thing ever, although won't happen. Government just loves power. Wish it would cease to exist

"It is also possible the present crisis could lead
to the privatisation of state
activities which could precipitate a social crisis."
Are you kidding me? That would be the best thing ever, although won't happen. Government just loves power. Wish it would cease to exist

"A Republican lawmaker said U.S. President Barack Obama's first 100 days in office can be summed up with three words - "spending, taxing and borrowing."

Not "spending, taxing and borrowing" -- because China is not lending anymore via US treasuries -- more like "spending, taxing and printing more of the world's future banana currency"!

The bulk of bail-out allocations were decided upon before Obama assumed office.In November 2008 the Federal Goverment's rescue programme was estimated at $8.5 trillion equivelant to 65% of US GDP.

The latest budget Obama presented to US congress is predicting a budget deficit of $ 1.75 trillion ,almost 13% of US GDP.

The question arising is whether the US treasury will be in a position to finance this staggering deficit through Treasury bills and bonds.

Since interest rates are rock bottom the market for these debt instruments is at a standstill which means the US treasury will find it virtually imposiible to finance its debt through conventional means.

The next big question is whether China & Japan will continue to purchase US goverment debt.At present the US goverment is engaged in a PR exercise with Asian investors trying to persuade them into buying T-bills and Bonds.

If the above does't bear fruit the Treasury will probably have further cuts in public expenditure and increase taxes on the use of public services and also selling off public assets.

It is also possible the present crisis could lead
to the privatisation of state
activities which could precipitate a social crisis.

One thing is certain that the US cannot continue to create money with no value inefinitelly.This will lead to the collapse of the US dollar as an international currency.

Are you kidding me? That would be the best thing ever, although won't happen. Government just loves power. Wish it would cease to exist
(Milan, 3 May 2009 15:22)

You try to tell this to the 38 million Americans who are on food stamps and live below the poverty line.