Mileage Psycho Posted March 28, 2018 Share Posted March 28, 2018 I don't want to say that I told you so....but goddammit I told you so Quote The US needs to borrow almost $300 billion this week Uncle Sam needs to borrow a ton of money this week — in the middle of a fight with its biggest creditor. The United States plans to sell about $294 billion of debt, according to the Treasury Department. That's the highest for a week since the record set during the 2008 financial crisis. Federal revenue is declining because of President Trump's tax cuts, so the government needs to borrow more to make ends meet. At the same time, Washington's borrowing costs have climbed rapidly in recent months. "The amount of debt coming on the market this week is extremely large," said Rick Rieder, global chief investment officer of fixed income at BlackRock, the world's largest asset manager. Awkward timing The government is auctioning all this short- and longer-term debt at an awkward time. Last week, Trump vowed to impose wide-ranging tariffs on China, which owns of more Treasury bonds than any foreign country. China responded by saying it would fight any trade war "to the end." When asked by Bloomberg Television whether China was considering scaling back purchases of US debt, China's ambassador to the United States said, "We are looking at all options." China holds $1.17 trillion of US debt. It trimmed those holdings by 1.4% between December and January, the latest data show. "We do rely on international investors in Asia for a good deal of our Treasury funding. And that is something a lot of eyes are focused on now," Rieder said. Why China keeps buying Guy LeBas, chief fixed income strategist at Janney Capital, played down concerns about China "abandoning" purchases of US debt. After all, one reason Beijing owns so many Treasuries is because of a huge trade surplus: China sells more goods and services to the United States than it buys, and it has to do something with all that cash. China chooses to invest in safe assets, like US debt. "We pay China in dollars for whatever they import to the US. They could take the dollars and hoard them, but that's not a particularly economical exercise," LeBas said. Washington and Beijing are in talks aimed at reaching a deal that would avert a full-blown trade war. One reason to keep China happy is that Trump needs China and other foreign investors to pay for his tax cuts, which are expected to add more than $1 trillion to the federal deficit over the next decade. "The amount of debt that has to be issued to fund the tax bill is tremendously high," said BlackRock's Rieder. Borrowing costs on the rise At the same time, the Federal Reserve has stopped buying US debt as it unwinds a financial crisis-era program that was aimed at keeping borrowing costs low. And investors are growing more worried that inflation will force the Fed to raise short-term interest rates, making all kinds of debt more expensive. "It's a tricky dynamic for the markets," Rieder said. Washington is planning to spend even more very soon. Last week, Trump signed a $1.3 trillion spending bill that will further increase borrowing needs. The United States ran a $215 billion deficit in February, the biggest in six years. The annual budget deficit could exceed $1 trillion as soon as next year, according to the Committee for a Responsible Federal Budget. The fiscal watchdog group recently warned that interest payments on US debt alone could quadruple to $1.05 trillion by 2028 if current policies stay in effect. Related: Interest payments on US debt could top $1 trillion Concerns about the gap between US revenue and spending have helped drive up Treasury rates this year, unnerving stock market investors accustomed to low rates. The 10-year Treasury yield spiked from about 2.4% at the beginning of the year to nearly 3% in February. It's about 2.85% today. "No one will abandon US Treasuries, but they may demand higher interest rates," LeBas said. He added that borrowing costs don't seem "especially problematic" at these levels. Rieder anticipates borrowing costs for the federal government will keep rising, especially during the second half of 2018. But he expects very strong demand for Treasuries from life insurers and pension funds that cater to aging baby boomers. "The demand for fixed income assets is tremendous," Rieder said. "That will put a cap on how high rates go." — CNNMoney's Jeanne Sahadi and Chris Isidore contributed to this report. http://money.cnn.com/2018/03/27/investing/us-debt-sale-record-treasury/index.html Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Skidooski Posted March 28, 2018 Platinum Contributing Member Share Posted March 28, 2018 Just now, Mileage Psycho said: I don't want to say that I told you so....but goddammit I told you so Who you kidding??? You absolutely love to try and say that any chance you think you can Captain Soapbox Quote Link to comment Share on other sites More sharing options...
Anler Posted March 28, 2018 Share Posted March 28, 2018 Wait, one of the forums fake conservatives posted a thread a month or two ago about a January surplus. WTH is going on? Quote Link to comment Share on other sites More sharing options...
Mileage Psycho Posted March 28, 2018 Author Share Posted March 28, 2018 1 minute ago, Nazipigdog said: Wait, one of the forums fake conservatives posted a thread a month or two ago about a January surplus. WTH is going on? Uhhhh uhhhhh @Highmark will tell you that it's ahhhhh uggggg............... Quote Link to comment Share on other sites More sharing options...
NaturallyAspirated Posted March 28, 2018 Share Posted March 28, 2018 Go MIC, yay!! Neal Quote Link to comment Share on other sites More sharing options...
spin_dry Posted March 28, 2018 Share Posted March 28, 2018 Where’s all this surplus money that’s supposed to be flowing in from the tax cuts. I’m sure Mr Google has a convoluted explanation. Quote Link to comment Share on other sites More sharing options...
Mainecat Posted March 28, 2018 Share Posted March 28, 2018 Plus all the savings cutting back Obamacare....WTF? Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted March 28, 2018 Share Posted March 28, 2018 trumpsters are the dumbest mother fuckers on the planet. giving the wealthy and corporate America HUGE tax breaks while increasing spending. after years of crying about debt under Obama it's OK though, cuts to grandma and poor cousin mike will make up the revenue losses. Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted March 28, 2018 Share Posted March 28, 2018 no worries guys, the money is going to start trickling down any day now. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted March 28, 2018 Platinum Contributing Member Share Posted March 28, 2018 Sure am glad its not going to be me paying it back. Quote Link to comment Share on other sites More sharing options...
Anler Posted March 28, 2018 Share Posted March 28, 2018 2 minutes ago, steve from amherst said: Sure am glad its not going to be me paying it back. Nobody is going to pay it back. Quote Link to comment Share on other sites More sharing options...
f7ben Posted March 28, 2018 Share Posted March 28, 2018 Funny .....I don't recall Vince starting any threads when the Fed was printing trillions and Obama was running huge deficits.....shocker Quote Link to comment Share on other sites More sharing options...
Anler Posted March 28, 2018 Share Posted March 28, 2018 Just now, f7ben said: Funny .....I don't recall Vince starting any threads when the Fed was printing trillions and Obama was running huge deficits.....shocker The democrats dont claim to be fiscal conservatives. The whole time Obama was president the republicans stomped their feet and shut down the govt over "out of control spending" They only did that because they knew the economy would come roaring back with that spending and they didnt want Obama to get credit for that. Now that they are in they want a roaring economy so they are going to spend like drunken sailors. Then when they lose the next presidential election it will be back to the fake conservative theme. 1 Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted March 28, 2018 Share Posted March 28, 2018 4 minutes ago, f7ben said: Funny .....I don't recall Vince starting any threads when the Fed was printing trillions and Obama was running huge deficits.....shocker to help save the economy, and it worked Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted March 28, 2018 Share Posted March 28, 2018 ben and another one of his infamous "they're both the same" moments... Quote Link to comment Share on other sites More sharing options...
Ez ryder Posted March 28, 2018 Share Posted March 28, 2018 9 minutes ago, Snoslinger said: trumpsters are the dumbest mother fuckers on the planet. giving the wealthy and corporate America HUGE tax breaks while increasing spending. after years of crying about debt under Obama it's OK though, cuts to grandma and poor cousin mike will make up the revenue losses. ell lets see the tax cuts went in to effect 2 mo ago . quarterly taxes have not even come due since the cuts came in to effect . so yeah keep trying to pretend this massive debt we are sitting on is because of the recent tax cuts .fuck most mid to large corporations are at least a yr behind in there taxes to boot .so this passing on your hero's massive debts coming due to a tax cut is a fucking pathetic deflection .lough it up buy you know the reality of who spent more than all others combined before him Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted March 28, 2018 Share Posted March 28, 2018 hey .7paytoplay... did the dems hand tons of cash to the wealthy and already profitable corporations, while increasing military and other spending bigly? then expect entitlements to be cut to help close the gap on that revenue loss? Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted March 28, 2018 Share Posted March 28, 2018 Just now, Ez ryder said: ell lets see the tax cuts went in to effect 2 mo ago . quarterly taxes have not even come due since the cuts came in to effect . so yeah keep trying to pretend this massive debt we are sitting on is because of the recent tax cuts .fuck most mid to large corporations are at least a yr behind in there taxes to boot .so this passing on your hero's massive debts coming due to a tax cut is a fucking pathetic deflection .lough it up buy you know the reality of who spent more than all others combined before him this isn't rocket science. although it may seem like it to you. Quote Link to comment Share on other sites More sharing options...
racer254 Posted March 28, 2018 Share Posted March 28, 2018 Just now, Ez ryder said: ell lets see the tax cuts went in to effect 2 mo ago . quarterly taxes have not even come due since the cuts came in to effect . so yeah keep trying to pretend this massive debt we are sitting on is because of the recent tax cuts .fuck most mid to large corporations are at least a yr behind in there taxes to boot .so this passing on your hero's massive debts coming due to a tax cut is a fucking pathetic deflection .lough it up buy you know the reality of who spent more than all others combined before him After a while, I find it easier to sit back and just read the stupid that comes out. 1 Quote Link to comment Share on other sites More sharing options...
Ez ryder Posted March 28, 2018 Share Posted March 28, 2018 4 minutes ago, Snoslinger said: to help save the economy, and it worked yeah it did lol . stumbled along despite all the policies put in place to slow it down Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted March 28, 2018 Platinum Contributing Member Share Posted March 28, 2018 Team beggar is bent that there may be a welfare cut. boo hoo. Quote Link to comment Share on other sites More sharing options...
racer254 Posted March 28, 2018 Share Posted March 28, 2018 Just another bullshit article designed to deceive. Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted March 28, 2018 Share Posted March 28, 2018 1 minute ago, Ez ryder said: yeah it did lol . stumbled along despite all the policies put in place to slow it down Quote Link to comment Share on other sites More sharing options...
Anler Posted March 28, 2018 Share Posted March 28, 2018 2 minutes ago, Ez ryder said: ell lets see the tax cuts went in to effect 2 mo ago . quarterly taxes have not even come due since the cuts came in to effect . so yeah keep trying to pretend this massive debt we are sitting on is because of the recent tax cuts .fuck most mid to large corporations are at least a yr behind in there taxes to boot .so this passing on your hero's massive debts coming due to a tax cut is a fucking pathetic deflection .lough it up buy you know the reality of who spent more than all others combined before him Maybe if the republicans spent an EXTRA trillion we would see faster results? Quote Link to comment Share on other sites More sharing options...
Snoslinger Posted March 28, 2018 Share Posted March 28, 2018 1 minute ago, racer254 said: Just another bullshit article designed to deceive. Quote Link to comment Share on other sites More sharing options...
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