Free Republic

A series of weak auctions for U.S. Treasurys are stoking investors’ concerns that markets will struggle to absorb an incoming rush of government debt. ... inflation not tamed ... Federal Reserve will leave interest rates at multidecade highs for .. years to come. The 10-year yield—the benchmark for borrowing rates on everything from mortgages to corporate loans—finished the week around 4.5%... At the same time, the government is poised to sell another $386 billion or so of bonds in May—an onslaught that Wall Street expects to continue no matter who wins November’s presidential election. While few fear a failed auction—an...

In a concerning development, approximately one-third of the U.S. government’s debt is slated to mature in the next 12 months, posing a potential problem as highlighted by Apollo, one of the world’s largest asset managers. Apollo cautions that as we move into 2024, Treasury auction sizes are projected to be, on average, 23% higher than in 2023.

During unprecedented times in the cruise industry, the crew and officers that work onboard are incredibly hard hit. While most have been home for six months, mostly without pay, cruise lines are now starting to scrap positions. With the sale of four ships, Holland America has been slimmed down considerably. While new ships are on the way, these will come too late for many crew members that counted on these vessels as their income and livelihood. Carnival Corporation Reducing Costs Carnival Corporation has been selling ships which have proven to be less effective and not as profitable as other vessels...

American officials said during their discussions they relayed Trump's commitment to addressing trade deficit concerns and resolving structural issues affecting trade between the two countries. (please see the full article, at the link) I really don't see what Trump is talking about, but I do not have access to our trade delegation either. Maybe he is seeing something different. What I am seeing, is we just set the worst trade deficit in all recorded history, with China. The worst ever. Worst. Between any two countries. Ever. It is not improving. It is getting worse. I am all for Trump, but...

The world is sinking under too much debt and an ageing global population means countries' debt piles are in danger of growing out of control, the European chief executive of Goldman Sachs Asset Management has warned. Andrew Wilson, head of Europe, Middle East and Africa (EMEA), said growing debt piles around the world posed one of the biggest threats to the global economy.

December 2, 2014Santiago, ChileOn October 22, 1981, the government of the United States of America accumulated an astounding $1 TRILLION in debt.At that point, it had taken the country 74,984 days (more than 205 years) to accumulate its first trillion in debt.It would take less than five years to accumulate its second trillion.And as the US government just hit $18 trillion in debt on Friday afternoon, it has taken a measly 403 days to accumulate its most recent trillion.There’s so much misinformation and propaganda about this; let’s examine some of the biggest lies out there about the US debt:1)...

Forty thousand dollars. That’s roughly your share of the U.S. national debt. That’s bad, but it’s nothing compared to the debt the government’s going to be racking up in the years ahead thanks mainly to America’s old-age welfare programs. As the Baby Boomers retire, the bill for Social Security and Medicare will grow fast, setting off a debt tsunami. Economists can estimate the difference between how much government is on track to spend and how much it will raise from taxes. They call this “the fiscal gap.” That number is astronomical: $205 trillion dollars, or more than half a million...

There's another story behind the glitter of our mass media economic reporting. The Japanese have 'been there, done that'. I thought the title, 'Baburu Keizai' might be intriguing enough to get you to read the post to find out the meaning. You probably already suspect that it is a Japanese phrase. Well, this phrase, and the history behind it, should tell us a lot about the shape of things to come here in America. The phrase translates to 'Bubble Economy'. The history behind the phrase goes back just a short 24 years to 1990. 1990 was the year of the...

September 30 was the last day of Fiscal 2012 for the US which explains why despite the barrage of debt issuance in the past month, the year closed with total debt of just $16.066 trillion, a modest increase of just $50 billion in the month. Luckily, moments ago we got the first DTS of the new fiscal year, which eliminated any residual confusion we had. As of the first day of FY 2013, total US debt soared by $93 billion overnight, and is now a record $16,159,487,013,300.35. One can see why Tim Geithner wants to push all the debt under...

WASHINGTON (MarketWatch) — Everyone knows America has too much debt. What they don’t know is that things are getting better, not worse. Little by little, our economy is reducing its debt burden, slowly repairing the damage caused by 10, 20 or 30 years of excess. If you want to know why economic growth has been so tepid, here’s your answer. Four years after the storm hit, the economy is still deleveraging. And it’s very hard for any economy to grow when everyone is focused on increasing their savings.

A note to readers. This 2000-word commentary is a longer-term view; think in terms of years, not months or days. The essay is not in conflict with the fully invested position currently held at Cumberland. The words reflect my personal thinking only. Some of my colleagues disagree. In my personal view, the future is uncertain (of course) and may be unattractive for the longer-term outlook. In my view, our American political system is failing us. In my view, we are joining the list of declining world powers. The framework to support that argument follows. "The external menace ‘You'll end up...

10-Yr: +1 11/32..2.474%.. USD/JPY: 78.92.. EUR/USD: 1.4160 Relentless: Treasuries are seeing more safe-haven buying this morning as macroeconomic fears remain front and center. Buying in the complex has dropped the 2-yr yield to a record low 0.2803% as traders look to park their money in maturities across the complex despite the compressed yields. The long bond is up close to three full points which has made for a decline of more than 16 basis points in its yield to 3.743%. A decline of more than 14 bps in the 10-yr yield has dropped it below 2.50% for the first time...

“The Congressional Budget Office’s report exposes the widening gulf between the President’s rhetoric and his budget’s reality,” said Ryan. “Simply put, the President’s budget spends too much, taxes too much, and borrows too much-and it continues to heap an unsustainable burden of debt on American families, today and in the future.”

The latest Golden State gift to America might be called the California triple whammy. It's an ongoing, ever-growing fiscal perfect storm that may be coming to a state near you. For Californians what follows is an explanation of how you've turned gold into dust. For out-of-staters, it's how to avoid triple whammy fever where you live. The first stage of the California triple whammy required spendaholics at government's helm running up perpetual double-digit, billion-dollar annual budget deficits papered over in the current year, to be fretted over in the next. Following close behind was an addictive need to issue billions...

If it continues borrowing at its current rate, the U.S. Treasury Department would hit the legal limit on government debt on March 14... Over the 12 months ending January 31, 2011 the Treasury borrowed a total of $1.8 trillion, or approximately $5 billion per day. This means that if the Treasury does not reduce the amount it is borrowing or take other actions to pay the government's bills--or if Congress does not increase the debt limit within the next 19 days--the federal government will begin defaulting on its obligations. As it approaches the limit, the Treasury can, however, also draw...

Perhaps the biggest issue going into the fall’s midterm elections is the elimination, extension or modification of the so-called Bush tax cuts. It affects our wallets, of course, but also our nation’s financial future, as government debt continues to expand to immense proportions While the argument is sometimes framed as tax cuts for the rich, the truth is if Congress does nothing before January, virtually all Americans’ paychecks would shrink. The tax cuts passed under the Bush administration, mostly enacted in 2001 and 2003, substantially lowered what every taxpayer, poor and rich, owes each year. Among the dozen major tax...

"The level of public debt in many industrial countries is on an unsustainable path.  Current budget deficits, partly cyclical but also swollen by policy responses to the crisis, are large in relation to GDP... high levels of public debt may lower long-term growth and ultimately endanger monetary stability.  These risks underscore the need for credible measures to reduce current fiscal deficits in several industrial countries."  Bank for International Settlements, 80th Annual Report, June 2010. Source:  Source:  Bank for International Settlements, 80th Annual Report, June 2010. Hoven's Index for July 14, 2010 Government debt in 2010 as a percentage of...

Jim Rickards, who recently has gotten massive media exposure on everything from the JPM Silver manipulation scandal, to the Greek default, was back on CNBC earlier with one of the most fascinating insights we have yet heard from anyone, which demonstrates beyond a doubt why any attempt by Europe to print its way out of its current default is doomed: "Look at what Soros did to the Bank of England in 1992 - he went after them, they had a finite amount of dollars, he was selling sterling and taking the dollars, and they were buying the sterling and selling...

Despite the uproar, France is not alone in considering such a step. Countries from Britain to Greece are also grappling with declining populations, ballooning government debt and longer life spans. With budget deficits ballooning across the continent, and a huge bailout of debt-ridden Greece on the verge of taking place, officials across Europe say they have no choice but to boost retirement ages if they are to tackle a monumental economic problem compounded by declining populations and longer life spans. But few issues are as sensitive in a region where the right to retire at a decent age, and retire...

President Obama's rhetoric may sound like a deficit hawk and voice of reason, but his actions don't match his words. The Democrat-controlled Congress and a Democrat President, is a prescription for a financial train wreck. They are addicted to spending your money. And not only is your money being used to buy votes from the public, but it's also being used to buy votes from other representatives like Mary Landreau and Ben Nelson. Who would have thought that "Hope and Change" would be so expensive?