Domestic and foreign investors, and anyone else looking for a great, conservative buy.
The U.S. is still selling!
Through the magic of quantitative easing, which I will go into in another article, you can get a U.S. T- 30 Year deal for 2.91 percent interest, or a Municipal Bond at 2.99 percent interest. And, the Fed Prime is 3.25 percent. Source, Bloomberg, as of 5:01 P.M., S.F. Cali time. My God that’s a deal! And it won’t be around forever! Think, beginning of the year 2014.
For the swag on Bonds check out this link:
The prices from a reputable source:
And from the same source, an examination of the credit problems of central banks:
We are backed by the full faith and credit of the U.S., in some cases you don’t have to pay taxes on interest T-Notes earn. We are moving towards making a substantial payment to our long term debt–$4.3 Trillion, and towards making changes in our entitlements to handle inflation; our labor market is coming back with unemployment set to reach 6 percent in 2016, housing is returning with younger families starting, it’s remained a stable investment since we started issuing them, and it’s U.S.!
Unlike other Central Banks, who are gathering as we speak in Washington D.C. for their Spring meeting, we are not suffering from a Greek or Euro style debt crisis. Still the initial news from the IMF meeting is a less than predicted growth of 1.9 percent from 2.1 percent for the U.S. in 2013, and 3.3 percent for the world, down from 3.5 percent. But we remain strong. Through our open, economic door policy the dollar was involved in over 80 percent of activity in global foreign exchange markets in April of 2010; source Government Accountability Office. Hereby, the GAO.
According to the GAO, “For investors in other countries, the United States offers a stable political system and possible favorable returns. Also, the dollar is considered to be the world’s dominant reserve currency.”
Here’s a breakdown of who owns what:
Cayman Islands: $111 Billion.
Brazil: $216 Billion.
U.K. $130 Billion.
Luxembourg: $124 Billion.
Switzerland: $118 Billion.
Belgium: $89 Billion.
Russia: $150 Billion.
Middle-East Oil Exporters: $189 Billion.
Japan: $882 Billion.
Taiwan: $147 Billion.
Hong Kong: $112 Billion.
And by the far the biggest, baddest, software stealin’ one of ‘em all!
China: $1.3 Trillion.
So if all these countries are still investing their currency, into our currency, to hold as a stable investment for the future, then it’s still the best deal in town!