Wednesday, June 10, 2009

Maybe It Would Help If We Borrowed More Money

This doesn't sound like good news.
June 10 (Bloomberg) -- Russia and Brazil, seeking to reduce their dependence on the dollar, announced plans to buy $20 billion of bonds from the International Monetary Fund and diversify foreign-currency reserves.

Russia’s central bank said it may cut investments in U.S. Treasuries, currently valued at as much as $140 billion, a week after China said it may reduce reliance on the dollar and American bonds. Brazil’s Finance Minister Guido Mantega said his country will purchase $10 billion of debt sold by the IMF, China will buy $50 billion and India may announce similar funding.
How could this have happened? We may need to spend more money to find out.

1 comment:

Jeff Burton said...

Would you please stop with this alarmism? The president has promised to pay for all new spending...right after he borrows a few hundred billion for the healthcare thingy. Sometimes I think you don't want to believe.