Aside from a critically important family meeting I attended this weekend, I spent the rest of the time this weekend, and through today, working on the latest Martenson Report, which should be out by tomorrow morning at the latest. The report will be on housing and where we stand with respect to prices, inventory, liquidity, and demand. In terms of where we are headed economically, housing ranks as one of the most vital issues of the day.
Just as important, however, is the ability of the US to attract the financing it needs to sustain a $1.8 trillion dollar federal deficit and a $300 billion trade deficit. Tracking the flow of money into and out of the US is going to be a significant part of our efforts around here for awhile.
Today, there was an article in Bloomberg that, frankly, has my antennae quivering, because it just doesn’t add up from any other perspective than being good copy and better propaganda. I’ll be bird-dogging this issue in the days ahead.
Here’s the opening of the article:
China Can’t Buy Enough Bonds as Dollar No Deterrent
Sept. 21 (Bloomberg) — International investors are increasing purchases of Treasuries on a bet U.S. inflation will remain subdued, even as the dollar falls to the lowest levels of the year and the budget deficit tops $1 trillion.
Investors outside the U.S. bought 43.1 percent of the $1.41 trillion of notes and bonds sold by the Treasury Department this year, compared with 27.1 percent of the $527 billion issued at this point in 2008, government figures show.
by former_user