What is your thoughts on raising the national debt up and up and up ?
Will it cause inflation at some point in the near future? And much higher interest rates.
Seems tho' if they raise interest rates like they were in 2007 that then there is no hope of even paying the interest payments on $16,800,000,000.00 and who knows what it will be by 2016 as government spending is now most of the economy.
The problem is not the national deficit, it is the trade deficit which runs about $60 to 80 Billion per month. --that big "rushing sound" that Mr. Ross Perot warned about some years ago. Our jobs going East to China. Blame rich capitalists and weak unions for that. (and politicans for sale) The trade-deficit reduces US tax revenue and that indirectly causes the national debt to go up.
Bernacke is currently buying $80 Billion of US debt and collaterized mortgages/home loans per month (monetary easing). If he stops, we will have to increase interest rates to sell our junkTreasury bonds. Mortgage interest rates will go up and the housing market collapses. Not a pretty picture. A tiger by the tail. Bernacke bails out just like his predecessor.
My guess is that the new Fed chairperson will "taper" bond buying slowly if at all. I count on interest rates staying low for a year or so which is why I continue to hold some utilities. CDs yielding under 1% don't appeal to me. Big international corporations with good ties to Obama, like GE, look safe to me for now.
Only thing I know for sure: when interest rates go up, the stock market goes down. The stock market is going up so the consensus of investors is that low interest rates will continue.
What investments are you into now? I know you shorted housing stocks in 2007
Trade imbalances have no effect whatsoever. It's a way for union wonks that are anti-capitalists like the pounder to blame the greedy capitalists. And the most socialist of all the unions is the SEIU. Force the libs to become energy independent, and give up their corrupt green energy policy, and the trade imbalance will be greatly reduced.
Looks s tom me that the National debt is the largest Ponzi ever dreamed of,as they are selling or printing money to cover the what comes due...Looks like a time bomb to me that no one knows when it will go off...Most of the debt thanks to the trade imbalance, is not even owned by Americans but foreign governments and private foreign people more money then leaves. ..Looks like China will be the biggest bag holder then Japan the next biggest when it explodes..everything will fall I think, until they figure out a new system.
Been so busy that I have not had time to read any message bd.
My husband got and large elk and a deer during this season while he is home, so have been putting it up...is a lot of work and every spare minute goes into it...
I know that utility stocks go down faster than the market when the interest rates go up at least they did when they started raising rates back in the spring of 2004..(.I did not know what was happening then). plan to buy back into XEL when it goes down to $20.00 again if it does.
I have a bad investment in Golden Ocean at $5.05 I probably wont see even for a long time in
I did good in shorting housing stocks lot of them went BK my puts for Jan 2009 were marvelous..
I have a great deal invested in puts and short JCP hoping to hold it till it goes under five or the get it into the new year..
I think that Obama care will be bad for all retail but have bet on JCP for over a year.
I have some Marine Harvest ,a Norway, since it was .50...but a lot of that depends on salmon prices which are not that good as well as Norway money. It is the largest fish producer in the world I believe, and more people want protein.
I bought a lot of Linn energy back when it was under $12.00 watched it go up and now back.
KOG was the best oil I bought in Oct. 2008 for $1.05 but watched it go to .16 cents a few months later then up again sold half of it when it reached $2.10 ...but lost it selling $10.00 calls a few months ago...only invested for a thousand shares so only had 500..sold 4 puts on 10.00 had 400 put to me last spring as I sold some puts on it so still have those...
It is big in the North Dakota oil country where my husband has been working as well as a lot of other relatives including my father-in-law who had to borrow against their place, and take early Social Security to survive for several years as there was no local work.
The North Dakota boom is going to last at least 20 years they say.
In Dickenson MCD pays $15.00 an hour with a $500.00 sign up.