Tuesday, February 08, 2011

Sweet Fancy Soros: U.S. Government May Sell 100-Year Bonds In Hope That Buyers Will Be Dead Before Full Payments Are Due

If this isn't evidence of an impending federal default, I don't know what would pass the test.

The U.S. government is now considering selling debt that would stretch out for 40 years, 50 years – or even 100 years, according to minutes from last week's regular Treasury meeting. With interest rates so low, there's a growing belief that the government could benefit from locking in today's borrowing costs by pushing trillions in debt obligations decades into the future.

Best of all, the banksters experts are recommending these long-dated maturities.

On Monday, a member of the Treasury Borrowing Advisory Committee raised the issue at a regular quarterly meeting with officials from the US Treasury and Federal Reserve Bank of New York... The group consists of 13 senior executives from Goldman Sachs, JPMorgan Chase, Morgan Stanley, RBS Securities, Bank of America and investment firms active in Treasury trading, including Soros Fund Management, Moore Capital and Tudor Investment Corp.

The TBAC member, who was not identified in minutes of the meeting published on Wednesday, recommended that the Treasury consider ultra-long bond issuance, defined as securities issued with a tenure of 40, 50 or 100 years... Investors would welcome the sale of such ultra-long debt as it would satisfy the long-term investment needs of banks, pension funds, insurers and retail investors.

"This is a test. For the next sixty seconds, this station will conduct a test of the Emergency Broadcast System. This is only a test."


Anonymous said...

I actually disagree with you on this one. 50-100 year bonds are fine.

It's the darn spending that we have to cut. How we pay for it doesn't matter.

directorblue said...

Anything that allows the government to borrow more money I'm agin.