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WARNING: United States Credit Risk
The Market Ticker —
... are down nearly 31% for the fiscal year so far.
People who are not making money - who are either unemployed or if self-employed are not profitable - don't pay taxes.
Ramping spending into such a situation is idiotic. It is similar to you losing your job and going on a spending spree, running your credit cards to the moon before they are cut off.
You may rest assured that they WILL be cut off if you continue this behavior for very long.
Perhaps Japan is warning us of an impending cut-off?
Japan has ...
Gold Retreats with Euro, But US Credit-Rating Questioned, Debt Gets Political in Japan
GoldSeek.com —
... [credit] rating on an entity with an accumulated negative net worth of more than $11,000bn (8,000bn; £7,000bn) and additional off-balance sheet obligations of $45,000bn? An entity that is set to run a $1,800bn-plus deficit for the current year and trillion dollar-plus deficits for years to come...?" Tuesday saw the "twin deficits" of American tax-payers both fiscal and trade rising yet again on the latest data. The finance chief of Japan's Democratic Party today told the BBC that, if elected this year, its government would only continue to buy US Treasury debt ...
Links 5/14/09
naked capitalism —
... (hat tip reader John L). SEC Staff to Recommend Civil Charges for Mozilo Wall Street Journal. Couldn't happen to a nicer guy. Not putting your money where your mouth is Brad Setser American TV adverts attack NHS Guardian Not So Green Wednesday Tim Duy. A good wrap of information, plus comments on the Fed's mixed signals on quantitative easing. Additional Reflections on the March Trade Release Econbrowser Japan 'would avoid dollar bonds' BBC (hat tip reader Scott). Not to worry, this is political ...
Thursday morning links
The Mess That Greenspan Made —
... Sony makes first loss in 14 years - BBC • Rents Crashing in London to 1991 Prices - Bloomberg • DJ To Investigate Record April Iron Ore Imports - MarketWatch • Spain to Drop Home-Buyers Tax Break, Spur Car Sales - Bloomberg • How China has created a new slave empire in Africa - Mail Online • Buy-to-let landlords struggle to repay their loans - Times Online • Moscow warns of future energy wars - Al Jazeera • Japan 'would avoid dollar bonds' - BBC HOUSING • Obama Administration Expands ...
Lunchtime Links 5-14
Rolfe Winkler —
... Japan Should “Avoid Dollar Bonds” (Guardian) “Japan’s opposition party says it would refuse to buy American government bonds denominated in US dollars, if elected.” Tough talk, but…. ...
