Airtime: Wed. Mar. 18 2009 | 7:33 PM ET
The Fed pumping money into Treasurys won’t help, says Martin Weiss, president of Weiss Research. He explains why to Stephen Roach, chairman for Asia at Morgan Stanley & CNBC’s Martin Soong. They also discuss what can be done to turn the U.S. economy around.
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{ 3 comments… read them below or add one }
How absolutely wonderful to see Dr. Weiss on CNBC. Frankly I’m sick of credit only going to Rubini, John Paulson, and Davidowitz for predicting this mess– Kudus to CNBC! And the highest praise of all to Dr. Weiss. THank you Doctor. Wishing you continued success.
Scott
I, too, am glad to see Dr. Weiss getting some recognition for predicting this financial catastrophe.
Dr. Weiss, you mentioned in the interview the difficulty that the US government may have selling more treasuries. What would happen over time if they start having difficulty doing this? If they raise yields, then wouldn’t the interest on the national debt gradually start increasing to dangerous levels? As of November 2008, interest on the national debt was the fourth largest expense in the federal budget behind Medicare-Medicaid, Social Security and defense spending, and that was before the stimulus package and other major expenditures. But if we don’t raise yields, how are we going to sell the treasuries to finance all this debt?
I just read a fascinating article but alarming article called “The Road to National Insolvency” which describes the interest problem and how it could happen that the US could default on its debt. The article is located here:
http://www.oftwominds.com/blogmar09/insolvency03-09.html
Dr. Weiss, I don’t know if you have time to comment on what people write on your blog, but I sure would be interested in your thoughts about this article and about what might unfold if the government starts having difficulty selling treasuries.
Thank you for all your work!
Nick
On June 4, 1963, John F. Kennedy signed Executive Order Number 11110. Please review this executive order and comment on your findings.