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  #101  
Old 04-28-2011, 03:08 PM
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http://weissratings.com/news/article...-debt-ratings/

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We believe that the AAA/Aaa assigned to U.S. sovereign debt by Standard & Poor’s (S&P), Moody’s and Fitch is unfair to investors and savers, who are undercompensated for the risks they are taking. An honest rating for U.S. government debt is urgently needed to help protect investors and support the collective sacrifices the U.S. must make in order to restore its finances.

In the Weiss ratings scale, ranging from A (excellent) to E (very weak), only sovereign countries with stellar scores in four major areas — debt burdens, international stability, economic health and market acceptance — merit a grade of A- or better. Meanwhile, on the low end of the scale, only countries that demonstrate severe and/or consistent weaknesses in those four areas receive a grade of D+ or lower. Currently, the data show that the U.S. government does not fall into either category: It ranks 44th in terms of its debt burden, primarily because of its large deficits; 32nd for international stability, due mostly to low reserves; and 27th for economic health because of recent boom-and-bust cycles. Helping to partially offset these low scores, however, the United States ranks 6th for its ability to borrow in the global marketplace, helping to raise its final grade to C and its overall ranking to 33rd.
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  #102  
Old 04-30-2011, 09:29 AM
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http://cnsnews.com/news/article/us-t...eased-its-hold

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Mainland China has decreased its holdings of U.S. Treasury securities since last October, according to a report updated today by the U.S. Treasury Department.

Since September 2008, when they eclipsed Japan, entities in mainland China have been the largest foreign owners of U.S. government debt. But, as indicated by the Treasury Department chart linked here, Chinese ownership of U.S. Treasury securities peaked in October 2010 and has declined in each of the four most recent months reported by the Treasury Department.

At the end of October 2010, China owned 1.1753 trillion in U.S. Treasury securities. That dropped to $1.1641 trillion by the end of November, $1.1601 trillion by the end of December, $1.1547 trillion by the end of January, and $1.1541 trillion by the end of February 2011.
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  #103  
Old 06-28-2011, 05:46 AM
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http://www.reuters.com/article/2011/...topNews&rpc=71

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(Reuters) - The risks of the U.S. losing its prized triple-A rating over the medium term have increased as the country faces a political impasse and nears its debt ceiling, Standard and Poor's said on Tuesday.

While the ability to adapt both fiscal and monetary policy was a positive for the United States, the risk of a credit rating downgrade had increased due to a lack of political consensus on how to employ that flexibility, Moritz Kraemer, head of sovereign credit ratings for Europe at Standard & Poor's, said on Tuesday.
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  #104  
Old 06-30-2011, 05:02 PM
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http://www.investmentnews.com/articl...edate=20110630

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Standard & Poor's would cut the U.S. credit rating to its lowest level and Moody's Investors Service said it will probably reduce its ranking if the government fails to increase the debt limit, leading to a default.

S&P would lower its sovereign top-level AAA ranking to D, the last rung on its scale if the U.S. can't pay its debt, John Chambers, chairman of the company's sovereign rating committee, said today. Moody's said it would probably assign a position in the Aa range, or within three steps of its highest level.

“If any government doesn't pay its debt on time, the rating of that government goes to D,” Chambers said today in an interview with Erik Schatzker on Bloomberg Television's “Inside Track”. “Having said that, we think the government will raise the debt ceiling. They've raised it 78 times more or less since 1960, often at the last moment, and we think that will be the case this time.”

....
On Notice

S&P put the U.S. government on notice in April that the nation risks losing its AAA standing unless policy makers agree on and begin “meaningful implementation” of a plan by 2013 to reduce budget deficits and the national debt. S&P would cut the country's sovereign rating if a deal on the debt ceiling isn't reached, affecting all Treasury securities, Chambers said.

....
Rating Review

A default stemming from “the debt limit and the political configuration would indicate that, well, this might happen again,” Hess said. “That risk is perhaps not compatible with Aaa.”

Moody's said on June 2 that it would put the U.S. credit rating under review for a downgrade unless there's progress on increasing the debt limit by mid-July.

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  #105  
Old 11-29-2011, 01:22 PM
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make it stop....

http://www.businessweek.com/news/201...-recovery.html

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Federal Reserve Vice Chairman Janet Yellen said the central bank has leeway to spur the U.S. recovery and reduce unemployment by purchasing more assets or clarifying its plan to sustain record-low borrowing costs.

“The scope remains to provide additional accommodation through enhanced guidance on the path of the federal funds rate or through additional purchases of longer-term financial assets,” Yellen said today. Economic growth in the U.S. and other advanced economies “has been proceeding too slowly to provide jobs for millions of unemployed people.”
.....

Minutes of the Fed’s Nov. 1-2 meeting show a few members of the policy-setting Federal Open Market Committee shared the view that further policy accommodation may be necessary.

At this month’s meeting, Fed officials left the benchmark interest rate in a range of zero to 0.25 percent, where it’s been since December 2008, and affirmed their pledge to keep the rate very low through at least mid-2013. The central bank also continued its so-called Operation Twist program to buy $400 billion of longer-term securities and sell an equal amount of short-term debt.


More Asset Purchases

Additional asset purchases would constitute a third round of so-called quantitative easing after the Fed bought $2.3 trillion in housing and government debt in two rounds from December 2008 to June 2011.
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  #106  
Old 12-05-2011, 04:15 PM
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http://www.investmentnews.com/articl...edate=20111205

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Funding next year's $1.3 trillion U.S. budget deficit may get a boost from Germany as bunds underperform Treasuries for the first time since the European debt crisis began in 2009.

While the U.S. needs to double bond sales to investors after the Federal Reserve reduced purchases, Treasuries due in 10 years or more are 2011's best-performing sovereign securities, returning 26 percent as of Nov. 30, according to Bloomberg/EFFAS indexes. German 30-year bunds yielded more than their U.S. peers last month for the first time since May 2009 as the government was only able to find buyers for 65 percent of a 6 billion euro ($8.1 billion) offering on Nov. 23, its worst auction in 16 years.

....
U.S. bond returns are poised to reach a nine-year high, even as government debt exceeds $15 trillion for the first time. While the S&P GSCI Total Return Index of commodities has risen 1 percent in 2011 and the MSCI All Country World Index of stocks has handed investors a 6.7 percent loss including dividends as of Nov. 30, Treasuries, corporate bonds, mortgage securities and other fixed-income assets are set to gain 7.3 percent this year on average, according to Bank of America Merrill Lynch index data. That would be the most since 10.3 percent in 2002.

The rally couldn't come at a better time for the U.S. Treasury. The administration of President Barack Obama will more than double sales to investors to about $1 trillion from $454 billion in 2011 because the Fed's stimulus programs have diminished, JPMorgan Chase & Co. said in a Nov. 25 report.

When the Treasury auctioned $35 billion of two-year notes on Nov. 21, it received $4.07 of bids for each dollar on offer, the highest ratio ever for a fixed-coupon note or bond. In a $35 billion five-year debt sale the following day, yields were set at a record low for the maturity of 0.937 percent.

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  #107  
Old 12-20-2011, 05:24 PM
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http://www.investmentnews.com/articl...edate=20111220

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The Treasury's $35 billion sale of five-year notes may draw a record low yield of 0.885 percent, according to the average forecast in a Bloomberg News survey of seven of the Federal Reserve's 21 primary dealers.

The securities, which mature in December 2016, yielded 0.891 percent in pre-auction trading. The record low auction yield of 0.937 percent was reached last month. The highest five- year auction yield in 2011 was 2.26 percent at the March sale. Bids for today's sale are due by 1 p.m. New York time.

Today's offering is the same size as the past 15 monthly five-year debt auctions.
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  #108  
Old 01-25-2012, 01:19 PM
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The Bernanke has spoken. Extending low rates until at least late 2014.
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  #109  
Old 01-25-2012, 01:36 PM
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At this point, they might as well say "we're going to have 0% short-term rates forever" because nothing is ever going to convince them that rates need to be raised - it will always be "well, this recovery is tenuous, we don't want to snuff it out before it gets going." The interesting thing will be to see what solution they propose when [not if] the economy begins to truly falter again - because they're running out of bullets [if they haven't already].
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  #110  
Old 01-25-2012, 01:49 PM
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So.

How well did this work out for Japan when they tried the same thing?
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