IF the USA was a company, would you lend it money?
Not if you read this....
If the United States were a company, what financial shape would it be in? And what would it make sense to do to put the company on a sounder footing? These are the intriguing questions that a group of investment analysts from Kleiner Perkins, headed by Mary Meeker, set out to answer. The resulting report, which includes 460 Power Point slides, is here. It is titled "USA Inc."
1 comment:
Investors are no longer as interested in buying US Treasuries. What that means is the US governement has to do one of three things:
1. Compete with higher yields for treasuries, which will drive up inflation. More demand for money yields higher interest rates which yields inflation.
2. Do more quantitative easing which basically is printing money. This creates the obvious result of inflation.
3. Immediately balance the budget and start paying back debt. This is very painful and will have the result of sending more people into the street and likely tumbling the economy further.
http://www.bloomberg.com/news/2011-03-09/gross-drops-government-debt-from-pimco-s-flagship-fund-zero-hedge-reports.html
Unless I am missing something, there doesn’t appear to be any way out of this mess. You haven’t seen anything yet.
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