Tag Archive: United States Treasury security


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Emily Flake

With no obvious solution on the way from Congress, the U.S. is approaching a fiscal crisis, and it’s impossible to say when it will begin to adversely affect the economy. Unless lawmakers allow his department to borrow more money, Treasury Secretary Jack Lew has warned that as of about November 3, the U.S. government will begin operating on a cash basis – something that could lead to a first-in-history default on the financial obligations of the United States.

The November 3 date, however, suggests that everything will be just fine so long as something happens by 11:59 on November 2. An announcement by the Treasury Department on Thursday, though, showed why that is manifestly not the case.

Related: What’s Really Driving the Stock Market’s Big Rebound Rally?

The Treasury sells billions of dollars in government-backed securities every week, from short-term bills to medium term notes, up to the 30-year “long bond.” Sometimes this is done to take on more debt, other times it is done as a management tool, allowing the Department to distribute the government’s obligations over different maturities as cost and need require.

 

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SGTreport.com

Published on Sep 2, 2015

Bill
Holter is back and he says “Something Just Happened”. In fact,
something changed three weeks ago and a series of events began which has
led to a cascading collapse in global markets and some very strange
happenings in the precious metals markets.

In silver last week
there was confirmed volume of 122,482 contracts traded in a single day
which represents 612 MILLION ounces of physical silver … or over 87% of
annual global silver production. Meanwhile China has sold $100 billion
worth of Treasury bonds over the last two weeks.

Bill warns, the
leverage in all markets suggests a “holiday” will occur because the
unwinding cannot be orderly. The “unwinding” by the way will need to
undue the credit built upon credit going all the way back to Aug. 15,
1971.

Mr; Holter concludes: “We’re going to have an absolute
Biblical collapse of our standard of living, and no one even has a clue
that it’s coming.”

Will the ‘myRA’ retirement plan take off?

January 28, 2014, 9:52 PM

In his State of the Union address tonight, President Obama announced that he would introduce a new kind of retirement-savings plan for workers who don’t have access to such plans through their jobs. “While the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401(k)s,” the president said. But how much of an impact will his proposal have for middle- and lower-income savers?

Reuters

Introducing ‘myRA’ to Congress and America.

The plan, which Obama dubbed the “myRA” (rhymes with the initials “IRA”), is designed to create “starter accounts” that would help novice investors avoid some common pitfalls of retirement savings. In briefing materials accompanying the State of the Union address, the administration noted that many private-sector providers don’t allow “smaller balance savers” to open accounts; providers who do allow such accounts often charge fees that can eat up a proportionately high percentage of their balances.

In his address, Obama described the myRA as “a new savings bond” that “guarantees a decent return with no risk of losing what you put in.” That wording brings to mind efforts by the Treasury Department to create “R bonds,” a special kind of interest-paying Treasury bond aimed at retirement savers; details of how such a bond would work haven’t been released yet.

In The Wall Street Journal this evening, Damian Paletta and Anne Tergesen report that the administration “is expected to encourage employers to offer the investment vehicles to employees who would be automatically enrolled unless they specifically elected not to participate.”

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Obama Introduces MyRA: The “No Risk, Guaranteed Return” Retirement Savings Bond


Earlier today we hinted at what was coming in “Obama To Unveil Treasury IRAs.” Well, here it is, and it even has a catchy name. Presenting: the MyRA, and since it offers “guaranteed return and no risk” we now know where all the Fed’s bond trades will go to work once QE ends.

From the president:

Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks. That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing whatyou put in ……..

Read More Here

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Can Obama’s ‘MyRA’ Lure Workers Who Don’t Save for Retirement?

January 29, 2014

President Obama picked a good venue to boost the “MyRA” retirement savings accounts he touted in last night’s State of the Union address. He spoke at a U.S. Steel plant in Pennsylvania, a state where the public pension system has a $47 billion shortfall and where workers would be right to worry about running out of money as they age.

Defined-benefit plans are disappearing—they covered 35 percent of Americans in the early 1990s and only 18 percent in 2011—and defined-contribution plans such as IRAs and 401(k)s haven’t made up the difference. Too few American workers have such accounts, and most of the ones who do don’t save enough. A survey last year by the Employee Benefits Research Institute found that only 13 percent of respondents are “very confident” they will be able to live comfortably in retirement.

That dismal picture helps explain the intense interest in MyRA since Obama introduced the idea last night. “It’s a new savings bond that encourages folks to build a nest egg,” Obama said. “MyRA guarantees a decent return with no risk of losing what you put in.” Administration officials fleshed out a few of the details for reporters:

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Politics, Legislation and Economy News

Economic News – Banking / Financial Corruption – Fiscal Irresponsibility – Rising Costs

The noble purpose of QE3 is to save the economy, right?

To put people back to work.  To put America on the road to recovery…

Hogwash.

It’s a scam right down to the bone.

Here’s the real story the financial news media won’t tell you.

Published on Sep 25, 2012 by

More videos at: http://www.brasschecktv.com

QE3 Explained Simply

Written by:
Written on:August 15, 2011

QE3 explained for the layman.QE3, or quantitative easing 3, lingers in the back of investors’ minds.

Few investors seem to know exactly what quantitative easing really means.

We’ll take the time to explain it now.

QE3 Explained

Quantitative easing is a simple concept: a central bank “prints” money to buy long- and short-dated government debt. The goal is to drive down interest rates, boost demand for investment capital, and increase economic output.

Supply and demand are equally powerful forces in the currency and debt markets as they are in the market for shoes, toothpaste, or jelly beans. Increasing supply means lower prices. For currency, the price is not only the current price, but also the future price—interest rates.

Many think that quantitative easing 3 will never come. The Fed has agreed to make the market for dollars liquid with a promise to keep interest rates at 0-.25% for the next two years. That action alone should keep the price of money inexpensive enough to end all talk of QE3.

Effects of QE3

We can’t predict with certainty what the Federal Reserve will do to boost output, stave off deflation, and promote general economic growth. However, we can explain how QE3 will affect the markets, pending that it does eventually come:

  1. Lower Treasury Yields – The Federal Reserve is authorized to buy US Treasuries with freshly printed dollars. When the Fed bids up the price of US Treasuries, the yield on US Treasuries moves down. This is true for any bond—price and yield are inversely-related.
  2. Lower dollar value – By nature of any quantitative easing program, the Fed must create more dollars to buy up US Treasuries. Naturally, this results in a lower dollar value against other currencies, as the price of the currency is dictated primarily by supply and demand.
  3. Inflation concerns – It happens every time the Fed acts to loosen monetary policy. Inflation remains low in the US, but a small group of investors worry that quantitative easing will lead to inflation. The reality is that the Fed would like to see inflation, since it has thus far failed to create any real measurable amount of it. Deflation remains a top concern.
  4. Rising asset prices – Assets are priced into the future, whether we’re talking about stock prices, or the price for a barrel of oil. When the time value of money falls, investors can pay for earnings further out into the future. Bernanke made it clear his goal was to boost the financial markets, and that means giving lift to asset prices.