See Full Article at: “Time to Buy Pesos? $2 Trillion of New Money Printed by Geitner & Treasury”
Abstract: Last week, we reported how Obama’s & Congress’s new “$40 billion in Budget Cuts” actually cut only $380 million out of $2 trillion annual US deficit & $14 trillion of debt, which is like reducing $1,000 of growing credit card debt by 19 cents a year. MXN Peso vs. US Dollar or “Saving 19 Cents on a $1000 Debt”
“Yep, we’re cutting back our $1,000 debt, by spending 19 cents less on cheap toilet paper, every year.” . . .
Should this give us Ex-pats confidence in future US Dollar investments & assets vs. Mexican Peso Assets?
In further deficit fighting actions: the US Treasury just sold $66 billion in new treasury notes.
New Treasury Supply Helps Market Get a Grip
What other additional tasty tidbits have been thrown into the flotsam and jetsam of things un-reported by the US mainstream big media? . . .
Reports out of Great Britain’s media describe how the Chinese Govt. had sold off roughly $65 billion of US treasury securities that were maturing between Dec. 2010 and the present ($34 billion in Dec as the biggest chunk and another reported $24 billion in Jan 2011). . . .
Why should this matter? Last week, China’s Central Bank head, Zhou, had said that China had
“too much in reserves”
aka an understatement of their intention to dump more US dollars? . . .
In a related little-reported quote this past weekend, a key member of the monetary policy at the Beijing’s central bank, Mr. Bin, seems to clarify their earlier hints about “too much in reserves” by saying:
“$1 trillion dollars in reserve would be sufficient” …
. . . Are these possible reasons why US Ex-pats who expected to live on US dollar-based “fixed incomes” seem to actually be looking at living on declining incomes? And Mexican investments seem to consistently be outperforming their US counterparts?
What’s your perspective?
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Read the full article on Time to Buy Pesos? or Mexican Assets/Investments at: (or access under Living in Yucatan (see header) )
Time to Buy Pesos? $2 Trillion of New Money Printed by Geitner & Treasury”
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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry
Read on, MacDuff.