

Weak U.S. 5-year debt auction raises worries - stuffthatmatter
http://www.reuters.com/article/marketsNews/idUSN2949944020090729
I wonder which day will be the day the fat man eats a mint and blows up
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Tangurena
This doesn't give much confidence that there will be sufficient funding for
the huge deficit this year.

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stuffthatmatter
The fed's just gonna have to print...and print...and print. hyperinflation
here we come.

~~~
ars
Let's not exaggerate. Inflation? Probably. Hyperinflation? No.

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stuffthatmatter
hyperinflation has to do with a loss of faith in the currency. Foreign debt
holders know that this America empire is sailing into sunset, and has no way
to pay its trillions of dollars back. They'll all dump it one night, causing
the dollar to drop 30-40%

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anigbrowl
Even if this happened (which I very much doubt it will because Japan, China
etc. don't want to write off 40% of their holdings or get into a vicious
economic war with the US), that's a long way from hyperinflation and general
fiscal Armageddon.

US business would _love_ the dollar to fall by 30%, our exports would soar and
those companies that depend heavily on manufacturing in China could probably
use other hard currency like the Euro. It would crimp our military operations
overseas, but when you get down to it a lot of countries still want to be
under the American nuclear umbrella and we paid for the nukes a long time ago.

~~~
stuffthatmatter
True....to a degree. Our agriculture exports would soar. But alot of other
things we produce are complex/advanced products, which depends on cheap
parts/oil from....other countries.

As for the military, well, China will pick a good time to crash the dollar
(when they've liquidated most of their dollar reserves). Then they'll be able
to bring US to its knees without firing a single bullet. Why shouldn't they?
it's their turn to be the empire.

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kevbin
China's is an command, export-based economy. Eviscerating its trading partners
wouldn't be wise: high-interest rates and weak dollars in the US _hurt_ the
Chinese economy--like it or not, our fortunes are intertwined.

Empires are founded on more than just manufacturing capacity. Lacking a
dynamic, principled base for its society, when the Chinese economy collapses
it will not recover. The Chinese bubble will burst:
[http://www.foreignpolicy.com/articles/2009/07/23/the_china_b...](http://www.foreignpolicy.com/articles/2009/07/23/the_china_bubbles_coming_but_not_the_one_you_think)

Upshot: don't finance your customers, or China 2009 == Lucent 1999

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Flipparachi
The Fed will buy the notes, as they have been doing for a while :)

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EinhornIsFinkle
Ya think? Seems like they'll need to keep printing money further devaluing the
dollar and/or raise rates to get foreign buyers interested. I think there has
been a lot of attention as of late on the strength (weakness) of the dollar &
wouldn't be surprised to see rates tick up after next FOMC meeting.

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BrentRitterbeck
I'm curious. How many people here are directly employed by the financial
sector?

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mynameishere
Up .07 percent.

<http://finance.yahoo.com/q?s=ief>

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EinhornIsFinkle
I hope everyone gets their mortgages under 5.5% because we're going to get to
7% faster than the baby bullet CalTrain.

~~~
donw
So, we'll hit 6% and then stop for no apparent reason?

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stuffthatmatter
I wonder which day will be the day the fat man eats a mint and blows up

