Monday, August 13, 2012

As I've been saying....

The world is awash in American money and eventually it will all come home. When it does we boom until the next bust. But with the Dems threatening to take it the money away through taxation it ain't gonna happen aytime too soon.

Troubles Abroad Keep Cash Flowing to U.S. -

Fears the U.S. will go over the "fiscal cliff" at the end of the year suggest not much has changed in Washington since the debt-ceiling battle hit the struggling economy a year ago. Also unchanged: Investors still appear convinced that the U.S. is the safest of borrowers, despite rising angst about government debt around the world. Why is Treasury debt still seen as one of the world's safest assets? The U.S. "effectively got a pass," said Tom Porcelli, chief U.S. economist at RBC Capital Markets. "If you needed to fly into the safety of a country, the U.S. was the best of the worst." How long this will last depends how long it takes the global backdrop to improve. Enlarge Image The U.S., despite losing its coveted triple-A debt rating from Standard & Poor's last August, remains a magnet for money fleeing the globe's trouble spots. As Europe's debt crisis rages, turmoil in Greece, Spain or Italy sends investors rushing into the safe arms of the U.S. government.

No comments: