Latest rantings from guru Peter Schiff

sabretoothtigger

To really discuss the stability of the government debt some proper analysis of that is what is needed and I presume schiffs point are based upon it, he mentions too much of usa treasury bills are short term and foreign owned

The banks failed mainly because they borrowed short term on money markets to loan out money long term.
Since 2008 that short term lending was withdrawn due to security backing it falling into doubt, the banks were insolvent.
The failure of Hbos was due in part to its requirement for 200bn in funding from the year 2008 june onwards, apart from government no such funding existed.
Also the banks took foreign debt, every time the currency falls that debt grows larger.


I think governments are possibly repeating this mistake. If you remember their 40 year gilt was a partial failure but the 12 year issue afterwards succeeded, this may be a precedent
I heard in the next 4 years USA needs to issue a further 3 trillion of treasury bills to pay for their planned budget deficits so what happens if no one is interested, they'll be stuck in a downward spiral


Even if the investment is justified on infrastructure, the maths may not support them short term
Countries must perform in the marketplace & like any other debtor must pay his bills or suffer consequences


http://en.wikipedia.org/wiki/United_States_public_debt