Martin Mayer: Mark of the Bust - Democratic Underground

carincross

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Wed Jun-14-06 05:52 AM
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Martin Mayer: Mark of the Bust

http://www.washingtonpost.com/wp-dyn/content/article/2006/06/09/AR2006060901775.html What happens when we run out of things to sell, or worse our foreign creditors cease of invest in America?>

http://www.nytimes.com/2006/06/14/opinion/14mayer.html

WHAT may be the most important number in the American panoply of economic statistics appears every Thursday night as an appendix to the weekly statement of the condition of the Federal Reserve System. This generally ignored number — few, if any, newspapers cover its release — has the unusual virtue of accuracy, for it is a simple financial statement derived from an adding machine, not from a computer or a formula. What the number announces is the quantity of government and agency securities held "for foreign official and international accounts" — that is, for foreign central banks and finance ministries — by the federal reserve banks. It is important because over time it measures the demand for American assets by private enterprise in the world's creditor nations… Foreign official holdings of government paper is a miner's canary number. It tells you if there is big trouble ahead.

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NC_Nurse

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Wed Jun-14-06 06:12 AM
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1. Very interesting.

I put it on the SMW thread.

Welcome to DU! :)

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