Sunday, September 19, 2010
Who's Picking Up the Tap for America's Spending?
The World's willingness to pay for U.S. budget defecits shows no signs of slowing down, especially with Europe's finances in dissarray. Foreign buyers added $76.4 Billion in U.S. treasury long-term debt in April, the Treasury department reported Tuesday. According to this article, The British ($42B), Japanese ($13.3B) , and Cayman Islands ($6.34B) have purchased a majority of these bonds from the U.S. There are concerns that if the U.S. plows itself too far into debt, than it will find itself in the same situation as Greece. This creates a bad lesson to learn: borrowers can cover up debt for only a certain amount of time. Eventually, those in Greece cashed in their bonds and the government was back into debt again. Hopefully, the U.S. government can learn from this and prevent itself from making a similar mistake.
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2 comments:
This is a good point, and Ill agree with andrew that we could be putting ourselves into a hole. We can continue to spend and spend with only short term gain as a result. We should be focused on how to get better over the long run, all of these government programs cost a lot and we are seeing the problems with them.
I completly agree as well. The United States needs to realize what is going on and look at the long term for the country. As scott says you cannot just keep spending and spending with out reprocussions. In not dealt with in the right way, it will cause a major crisis for the U.S. in a couple of years.
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