Daily Archives: 12 July 2010
Peter Schiff on Dollar, credit ratings, China, short-term debt
* A Chinese rating agency rated US sovereign debt modestly, and Chinese debt higher. This makes a lot of sense as China is the world’s biggest creditor and we are the world’s biggest debtor, but US rating agencies are likely under a lot of political pressure.
* A lot of bank & corporate debt has lowest average maturity of last thirty years. The boom in short-term lending is a symptom of artificially low mortgages. Lenders do not want to be locked in a low rate. The maturity of all this debt will create problems if lenders don’t want to roll it over.
Tell us what’s going on with our money
I was disappointed last week to discover that despite his co-sponsorship of the Audit the Fed amendment, Rep. Dave Loebsack voted against its inclusion in a package of financial reforms.
The Audit the Fed amendment had 320 co-sponsors and broad bi-partisan support. The fact that Loebsack and more than 100 other co-sponsors betrayed the amendment at its decisive moment reflects the power of the Federal Reserve.
The Fed is a semi-private bank that sets interest rates by an elaborate process that ultimately amounts to printing money and thereby diluting the value of the money in our wallets, bank accounts and mattresses.
(Read more from press-citizen.com)