Silverbird
04-28-2008, 10:21 AM
April 28 (Bloomberg) -- Add another ailment to the U.S. misery index of soaring gasoline and wheat costs and falling home values: a federal deficit (http://www.bloomberg.com/apps/quote?ticker=FDEBTY%3AIND) that is burgeoning as foreign investors led by the Japanese recoil from the slumping dollar (http://www.bloomberg.com/apps/quote?ticker=DXY%3AIND).
The Japanese (http://www.bloomberg.com/apps/quote?ticker=HOLDJN%3AIND), who own $586.6 billion, or 12 percent of U.S. government debt (http://www.bloomberg.com/apps/quote?ticker=DEBPMARK%3AIND), had their worst quarter in Treasuries this decade, losing 7 percent in the first three months of the year as the dollar fell to the lowest since 1995 versus the yen, Merrill Lynch & Co. indexes show. Dai-ichi Mutual Life Insurance Co., Meiji Yasuda Life Insurance Co. and Sumitomo Life Insurance Co., three of the nation's four-biggest insurers, would rather accept the world's lowest bond yields in Japan than buy U.S. debt.....
America relies on foreign investors, who own more than half the U.S. government debt outstanding, to finance a deficit that New York-based Goldman Sachs Group Inc. predicts will expand to a record $500 billion for the year ending Sept. 30, after a $163 billion gap last year. Without their support, long-term interest rates would be 0.9 percentage point higher, a 2006 Federal Reserve study found......
http://www.bloomberg.com/apps/news?pid=20601109&sid=adQ8ReGYJ.D8&refer=home
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The Japanese (http://www.bloomberg.com/apps/quote?ticker=HOLDJN%3AIND), who own $586.6 billion, or 12 percent of U.S. government debt (http://www.bloomberg.com/apps/quote?ticker=DEBPMARK%3AIND), had their worst quarter in Treasuries this decade, losing 7 percent in the first three months of the year as the dollar fell to the lowest since 1995 versus the yen, Merrill Lynch & Co. indexes show. Dai-ichi Mutual Life Insurance Co., Meiji Yasuda Life Insurance Co. and Sumitomo Life Insurance Co., three of the nation's four-biggest insurers, would rather accept the world's lowest bond yields in Japan than buy U.S. debt.....
America relies on foreign investors, who own more than half the U.S. government debt outstanding, to finance a deficit that New York-based Goldman Sachs Group Inc. predicts will expand to a record $500 billion for the year ending Sept. 30, after a $163 billion gap last year. Without their support, long-term interest rates would be 0.9 percentage point higher, a 2006 Federal Reserve study found......
http://www.bloomberg.com/apps/news?pid=20601109&sid=adQ8ReGYJ.D8&refer=home
:(