...why, from the rest of the world, of course.
German bond auctions failed recently because no one wanted to buy their debt. German debt auctions failed. Imagine what Greece and Italy and Spain will find when they go to auction off theirs.
Thanks to Obama, the US's image in the world will improve dramatically. That is, until we start gorging ourselves on investment money taken out of their countries. Then, we won't be liked so much any more.
This is related to something that's been bugging me ever since I saw that "Quantitiative Easing" video you posted a while back. It basically said that the banks were afraid to lend money normally, so instead they were buying Treasury bonds - loaning their money to the government instead of to people and businesses who could actually use it.
ReplyDeleteThis made me think, "Doesn't this mean that the problem isn't that other investments are too risky, but that the government has made Treasuries too attractive?" The obvious solution isn't to pump in more money, but to make Treasuries a less attractive invesment.
I kind of suspect that a significant part of our troubles right now, is that the government has been borrowing too much all along, and have already sucked up all the funds available for loaning. They have been trying to use this money for "stimulus", but Treasuries are *still* too attractive, and the banks just use the stimulus money to buy *more* Treasuries. Now that all the air has been sucked out of the business loans, goverments are going to be competing to steal loan money from *each other*.