More Debt and Less Buyers

... is a good thing, right?

The One went on national TV last night and stumbled his way through his first news conference trying to win support for the Stimuloid Porkgasm™. Whether or not he was successful is almost a moot point. Dig this little bit from the marvellous Across the Curve blog discussing the reduction in demand for Treasuries.

One salesman with whom I converse who chats with that group expects that they (foreign central banks) will be a factor as they have in the past. However, he makes the salient point that the size of the auctions this week is massive and the Treasury needs a buyer at the margin. He does not expect that central banks will fill that role and consequently the percentage which they purchase should register a decline.

He notes that oil producers and other commodity producers have fewer reserves as commodity prices tumble. The level of economic activity around the globe has contracted and intuitively that should leave the banks with fewer funds to invest. Some countries like Russia are busy defending currencies and that would reduce their need to buy. If I have that right it should actually make them sellers of US assets as they support their own currency.

You can't borrow gajillions of dollars to hand out to your faithful Democrat lapdogs if no one will lend it to you.

Oh, I'm sorry, I forgot. Yes you can. All you have to do is print the money. That will solve everything. Forget what I wrote up above. Everything will be fine. Just fine.