US Tresury Bonds in Euro or Yen

[D-Mack]

How does this work ? I was listening to an interview with a guy from this website http://www.europe2020.org/ and he mentioned that this could happen as it has with Deutsche Mark in the 70's.

I don't know anything about it and I was unable to find something.

Interview


Global systemic crisis – New tipping-point in March 2009: ’When the world becomes aware that this crisis is worse than the 1930s crisis’

[GRG55]

Re: US Treasury Bonds in Euro or Yen

How does this work ? I was listening to an interview with a guy from this website http://www.europe2020.org/ and he mentioned that this could happen as it has with Deutsche Mark in the 70's.

I don't know anything about it and I was unable to find something.

Interview


Global systemic crisis – New tipping-point in March 2009: ’When the world becomes aware that this crisis is worse than the 1930s crisis’

EJ makes mention of these in this post. Go to "The Three Ways of Inflation" and check out "Obama Bonds"...

[we_are_toast]

Re: US Treasury Bonds in Euro or Yen

Global systemic crisis – New tipping-point in March 2009: ’When the world becomes aware that this crisis is worse than the 1930s crisis’

Thanks for the link! Great stuff for us doomers.

[D-Mack]

Re: US Treasury Bonds in Euro or Yen

EJ makes mention of these in this post. Go to "The Three Ways of Inflation" and check out "Obama Bonds"...

I guess with a subscription comes knowledge....

[GRG55]

Re: US Treasury Bonds in Euro or Yen

I guess with a subscription comes knowledge....

With a subscription comes the opportunity for more knowledge...unused it's no better than that exercise bike in the corner of the basement.

Here's some Bloomberg commentary from last month on the topic...

Obama Bonds May Be the Answer as Dollar Plunges

Commentary by William Pesek

Nov. 25 (Bloomberg) -- As Barack Obama takes over from George W. Bush, he may need to borrow an idea introduced by another U.S. president viewed as an economic failure.

In the late 1970s, Jimmy Carter issued $6 billion of debt in foreign currencies such as the deutschemark and Swiss franc. The move was aimed at halting a precipitous drop in the U.S. dollar. The securities, dubbed “Carter bonds,” did little to help Carter’s legacy.

Tokyo-based economists, including Kazuo Mizuno of Mitsubishi UFJ Securities Co., say President-elect Obama, faced with enormous and growing debt obligations, will consider selling debt in yen and other currencies. Should markets begin making room for “Obama bonds?”...

[D-Mack]

Re: US Treasury Bonds in Euro or Yen

With a subscription comes the opportunity for more knowledge...unused it's no better than that exercise bike in the corner of the basement.

Here's some Bloomberg commentary from last month on the topic...

Obama Bonds May Be the Answer as Dollar Plunges

Commentary by William Pesek

Nov. 25 (Bloomberg) -- As Barack Obama takes over from George W. Bush, he may need to borrow an idea introduced by another U.S. president viewed as an economic failure.

In the late 1970s, Jimmy Carter issued $6 billion of debt in foreign currencies such as the deutschemark and Swiss franc. The move was aimed at halting a precipitous drop in the U.S. dollar. The securities, dubbed “Carter bonds,” did little to help Carter’s legacy.

Tokyo-based economists, including Kazuo Mizuno of Mitsubishi UFJ Securities Co., say President-elect Obama, faced with enormous and growing debt obligations, will consider selling debt in yen and other currencies. Should markets begin making room for “Obama bonds?”...

Thanks, there are certainly a lot of people from the Carter admin around Obama

[Serge_Tomiko]

Re: US Treasury Bonds in Euro or Yen

Thanks for the link! Great stuff for us doomers.

you say "doomer" with such pride!

[D-Mack]

Re: US Treasury Bonds in Euro or Yen

Thanks for the link! Great stuff for us doomers.

If remember he talks in the interview about a 50% cut in living standards, that's pretty bad.

[metalman]

Re: US Treasury Bonds in Euro or Yen

Thanks, there are certainly a lot of people from the Carter admin around Obama

ej also raised the point... if you have a choice between bonds in your own currency and in dollars, why buy the latter when they roll over? looks like a can of worms... unless interest rates rise on the dollar bonds.

[we_are_toast]

Re: US Treasury Bonds in Euro or Yen

you say "doomer" with such pride!

Not Proud, just a realist.

I know little about economics, but common sense told me years ago that no economy could continue with the enormous and rapidly increasing debt the U.S. had. I did my best to warn people, including politicians, that we had to do something about the debt, as I'm sure others here did. Even though I knew it was going to get bad, I really had no idea how it would play out.

About a year ago I started finding sites like iTulip where people who had a much better understanding of the situation than me were screaming that it's almost too late to stop the train from crashing. Now the wreck has begun, and still 98% of the people and politicians think that by 2010 we'll be back to the way it was, our houses will be regaining their lost value, and we'll be driving our big SUV's down to the sharper image to put a 52" Plasma on our maxed out VISA card. And they haven't even begun to comprehend the impacts of Peak Production Oil and the unimaginable disaster of global warming that waits a few years down the road.

Sorry, my optimism has run dry. During the day, I go about my business as a meek manored _____ and put a smile on my face. At night, I roam the internet as Super Pessimist WE_ARE_TOAST, warning people of the financial tornadoes and punches to the gut that the world is about to get. Not in an effort to stop it, but in an effort to get people to prepare. Sometimes you have to go a little overboard and scream in peoples ears to get them to listen. The Gloomier and Doomier the better! If it takes, end of civilization as we know it talk, to get people to prepare, than so be it.

I don't want to see anyone suffer through what's coming. We have plenty of optimists, maybe a couple of pessimists can help a little.;)

[Sapiens]

Re: US Treasury Bonds in Euro or Yen

Sorry, my optimism has run dry. During the day, I go about my business as a meek manored _____ and put a smile on my face. At night, I roam the internet as Super Pessimist WE_ARE_TOAST, warning people of the financial tornadoes and punches to the gut that the world is about to get. Not in an effort to stop it, but in an effort to get people to prepare. Sometimes you have to go a little overboard and scream in peoples ears to get them to listen. The Gloomier and Doomier the better! If it takes, end of civilization as we know it talk, to get people to prepare, than so be it.

I don't want to see anyone suffer through what's coming. We have plenty of optimists, maybe a couple of pessimists can help a little.;)

Qui vult decipi, decipiatur.
(Let him who wishes to be deceived, be deceived.)

- Latin proverb