Category

U.S. Debt

Global Markets

Who Are the 8 Puerto Rico Oversight Board Members?

Who are the eight Puerto Rico oversight board members?

Well, the president is expected to reveal all of them later today, but we know seven of them now...

Market Crash

WARNING: Record Global Sell-Off of U.S. Debt Could Trigger Economic Collapse

Foreign governments buy U.S. debt because of its status as the world’s reserve currency – the American economy has long been viewed as a safe place to invest.

But that’s all changing now – events that could spark a U.S. economic collapse are already underway…

The Wall Street Journal revealed this week that China – the largest holder of U.S. investments – is ridding itself of its U.S. investments at the fastest rate in history. Central banks in China, Russia, Brazil, and Taiwan are selling U.S. government bonds at such a pace that it’s caused the most dramatic shift in the $12.8 trillion Treasury market since the 2008-2009 financial crisis.

Foreign central bankers’ massive offloading of U.S. debt sends a dangerous signal.

Here’s why…

Market Crash

Here's Your Insurance Against a $200 Trillion Debt Bubble

The world is awash in debt, and it's simply unsustainable. As worldwide debt levels keep setting new records, there's no chance anyone will ever be paid back.

Even "vampire squid" Goldman Sachs, with its tentacles deep into bond markets, thinks so.

The world's central banks now have an insurmountable dilemma: Raising interest rates will just increase the repayment burden. Keeping them low will only inflate the debt bubbles all over.

The sovereign debt crises we've seen over the last six years have triggered major sell-offs, but odds are high this $200 trillion global problem could start the mother of them all.

But I'm going to show you how to make a killing as the bill comes due...

Economy

U.S. Debt: Greece Is Not the Only Country with a Debt Problem

Policymakers need to start being more honest about how the U.S. debt works.

It's an age-old debate among the members of Congress. How do we cut the budget? How do we reduce the debt?

But that debate is being framed in the wrong way.

U.S. Debt

How the U.S. Debt Works

Policymakers need to start being more honest about how the U.S. debt works.

It's an age-old debate among the members of Congress. How do we cut the budget? How do we reduce the debt?

But that debate is being framed in the wrong way.

Here's what no one in Congress is telling you about how the U.S. debt works...

U.S. Debt

Could the U.S. Government Default on Its Debt?

With news of both a Greek default and the almost-Puerto Rican default, observers are invariably going to shift focus at some point to the U.S.’s $18.1 trillion debt.

So, will the United States go the way of Greece and Puerto Rico? Could the U.S. government default on its debt?

Yes, but it would be vastly different than in Greece or Puerto Rico. Here’s why…

global economy

The Real Reason Russia and China Are Dumping U.S. Debt

The dollar is a weapon, built up by the U.S. debt to foreign nations and protected by U.S. military might.

But the U.S.'s financial foes aren't taking it anymore. They want to bring an end to this financial weaponization of the dollar.

And in doing so, they are going to do whatever it takes to both diminish the dollar's role as a reserve currency and introduce a new international payments system to settle global transactions...

China

BREAKING: U.S. Debt to China Will Destroy the U.S. Dollar

The amount of U.S. debt owned by foreign nations has never been higher.

Since Sept. 30, 2014, the U.S. Treasury has accumulated $17.8 trillion worth of debt. That’s roughly 103% of the total U.S. GDP in 2014.

And 34% of that debt – $6.1 trillion – is owned by foreign governments. Here’s why that’s such a big problem…

U.S. Economy

Don't Fear China and Japan Owning More U.S. Debt

The U.S. Treasury Department said today (Thursday) that total foreign holdings of U.S. debt rose 1.1% in November to $5.72 trillion, putting foreign holdings 0.1% below the all-time high of $5.76 trillion it reached in March 2013.

In particular, China's holdings reached record levels, increasing 0.9% to $1.32 billion, and so did Japan, which boosted its holdings by 1% to $1.19 trillion. The two countries are the largest and second-largest foreign buyers of Treasury debt, respectively.

To watch the video, click here...

The Fed

This Chart Will Save You from a Dangerously Popular Delusion

There's a very dangerous meme making the rounds.

It goes something like this:

The economy is improving, therefore the Fed's going to taper… and, when it does, the economy is strong enough to endure the withdrawals that will come with it.

Don't fall for it.

Nothing could be farther from the truth. Any amount of stimulus reduction will indeed trigger a "taper tantrum."

This chart is all the proof we need...