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Tag Archives: treasury bonds
The Real Truth Is, When It Comes To The Government There Is No Debt
by Guest Author Mike Norman, Chief Economist at John Thomas Financial All we hear about is the debt, the mountain of debt. Debt, debt, debt…it never ends. My question is, what debt? What’s the debt that everyone is talking about? … Continue reading
Posted in Government, US Treasury, macroeconomics
Tagged austerity, debt ceiling, deficit, government debt, Mike Norman, private savings, super-committee, treasury bonds
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Effects of Operation Twist
by Guest Author: James D. Hamilton
The Federal Reserve announced on Wednesday ([1], [2]) that it will sell some of its shorter-term assets in order to buy more longer-term assets. Here I assess some of the possible consequences of this move.
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The modest effects that one could reasonably anticipate for a measure like operation twist are easily swamped by other developments, and even a sizable effect on 30-year Treasury yields would not in my mind provide a major stimulus. I think the correct interpretation is that the Fed would like to bring some more stimulus, this was something they could do in that direction, so they did it.
But if you were about to drown, I wouldn’t want to count on operation twist as your lifeline to safety. Continue reading
Posted in Economics, Federal Reserve, US Treasury
Tagged Econbrowser, Fed, interest rates, James D. Hamilton, QE2, Treasury, treasury bonds, treasury yields
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China Stops Buying U.S. Debt? Could be a Good Thing
If the US wants foreigners to “lend” it more money, all it has to do is engineer a larger trade deficit. If it wants to reduce foreign lending, it must have a smaller trade deficit. That’s pretty much all there is to it. So warnings about what bad things might happen to the US if China stops buying US government bonds are no different that warnings about what bad things might happen to the US if its trade deficit contracts. Continue reading
Posted in China, Government, Trade Data
Tagged China, trade surplus, treasury bonds, U.S. current account deficit, U.S. debt
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