Point of no return: Interest on T-bills hits zero

m.apnews.com...

NEW YORK (AP) - Investors are so nervous they're willing to accept the same return from government debt that they'd get from burying money in a coffee can - zero. The Treasury Department said Tuesday it had sold $30 billion in four-week bills at an interest rate of zero percent, the first time that's happened since the government began issuing the notes in 2001. And when investors traded their T-bills with each other, the yield sometimes went negative. That's how extreme the market anxiety is: Some are willing to give up a little of their money just to park it in a relatively safe place. "No one wants to run the risk of any accidents," said Lou Crandall, chief economist at Wrightson ICAP, a research company that specializes in government finance.

This may be good for some. But this tells me one thing that these people seemed to not want to mention, that the government is BROKE. And we are in for one hell of a ride when our credit rating gets dropped to BBB or even lower. US government default is well on it's way, in my opinion.

They'll just take a while to downright the lies. It's noth worthles, but future tax rises for this binge are likely to be quite big, as currency depreciations.

I agree, but herein we will find ourselves in the midst of tax revolts and other such civil unrest. We're being robbed now, and we'll get robbed later, and this is the sort of thing that will cause the break up, or restructuring of the US as a nation. On;y a matter of time now.

Just a matter of time before a political group comes out of the chaos with promises illusions of grandeur and a nice pretty new utopian society to the sheeple. All you have to do is just give up a few rights here and there. You may have to pay the majority of your earnings but dont worry, everyone will be making the same, so no class struggle. Just trust your local politician to set you up and dont bother checking in on him, hes a hardworking trustworthy guy with tons of skills in every category you may encounter.
:sigh:

Think about it. People are lending the goverment their money with no interest in return. Does that sound like a goverment about to go broke? No. It means that people think the goverment is the safest place for their money.

Originally posted by disgustedbyhumanity
Think about it. People are lending the goverment their money with no interest in return. Does that sound like a goverment about to go broke? No. It means that people think the goverment is the safest place for their money.

It would be safe if the government was holding that money, but they are not, they are using these t-bills as a fund-raiser to pay for the bailouts. This is not sound policy.

www.bloomberg.com...

Actually, it gets better than that.

The 90 day bill went "negative" today.

JK

Holy crap. They're stealing money to pay for the bailouts...Which is just a foreign investor payoff, and a CEO bonus program. Negative! Dear lord let the people see the fraud being committed against them. Let them take the pieces back and never hand it back to these snakes.

Originally posted by redled
They'll just take a while to downright the lies. It's noth worthles, but future tax rises for this binge are likely to be quite big, as currency depreciations.

I think the most serious issue is that Japan and China fled bonds
to T bills, and now they feel like it is going down they may dump
all the US devices and it could trigger a global sell off.

China and Japan are the two top holders of those notes.

If this happens in a short time span it could make our country
essential a junk status country officially.

Then the threat the IMF levelled of downgrading our credit will
happen and further erosion of the US will continue at greater speed.

Originally posted by projectvxn
I agree, but herein we will find ourselves in the midst of tax revolts and other such civil unrest. We're being robbed now, and we'll get robbed later, and this is the sort of thing that will cause the break up, or restructuring of the US as a nation. On;y a matter of time now.

Yes, this is the catalyst for the North American Union that the
US president, the Mexican president, and Canadian prime minister
all signed off on.

Also you will be getting the Amero at some time, and the special
"smart port" in the center of the US where Mexican truck drivers
working for peanuts will drive in all the freght from ports on the
west coast of Mexico so they can shutter all the ports in California
and basically finish bankrupting that state.

A lot of truckers are about to lose their jobs.

A lot of ppl in California are going to move to other states and
real estate will continue to plummet there.

This was all planned years ago to bypass the taxes and unions
in the supply chain on the west coast.