Why if China is going to take over position of US as economic power and US is going to collapse?

David M asked:


why does China as well as every other country in the world all keep buying US treasury bonds?

and how could China cause US collapse if it wanted to ? why would it want to?
Why would it want to tumble the whole stack of cards? could China do this even if it wanted to?

Filed Under Economics | 2 Comments

Are Bonds Safe?

pitachips3 asked:


I have always heard that U.S. Treasury bonds are the safest investments one can make. However, it seems to me that the U.S. national debt is spiraling and creditor countries like China and India are approaching the point where it is no longer necessary for them to buy U.S. debt. At this point, won’t the whole U.S. government economy collapse, and won’t bonds be defaulted? Please explain to me how people can have 100% confidence that their 30 year bonds will be repaid.
Yes, I am American. Sorry for not clarifying; I was unaware than different nationalities brought different implications

Filed Under Investing | 4 Comments

When countries are no longer able to support the US’s spending or no longer want to, what will happen?

interdependent globalized world asked:


When countries reallocate their money towards their own stimulus projects and no longer are able or willing to buy Treasury Bonds to support US spending, what will happen?

What will happen if imports into the US become much more limited after this happens?

I see only disaster, what do you believe will happen?

Question written on March 14, 2009
I think, again, this is my opinion, think that this has quite a high probability of happening either this year or next year.
Please remember, 2/3 of the US economy, the GDP, runs on consumer and government spending, it is completely unsustainable.

I do believe the US economy is in for some type of major crash in the future.

Filed Under Politics | 7 Comments

Why are bonds doing so bad right now?

Matthew Smit asked:

People aren’t buying stocks right now. And it seems nonsensical to be putting my 401k dollars in a money market fund where they will earn 0.05%. Bonds seems like the obvious safe play here with decent returns. Yet, they have been doing poorly the last couple weeks. I have a large portion of my 401k in PTTAX which is a conservative, high credit quality bond fund. And it has been going down consistently. The fund mainly invests in US Treasuries. What is the reason for the downslide?
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Matthew

Filed Under Investing | 5 Comments

How long does it take a us treasury savings bond to mature?

kathyw0728 asked:


The saving bond is being purchased for a child. If it matures in say, 7 years, do you just cash it in and buy another one or does it continue to accrue interest until she needs it for school?

Filed Under Personal Finance | 1 Comment

Electronic Bonds vs. Paper Bonds?

caramelakilah asked:

They say that soon the treasury will stop the sale of discounted bonds at banks and financial institutions. Is it more profitable to buy bonds from the ban which are priced 50% off ($25 for $50 bond) or through treasury direct with is face value ($25 for $25 bond). Will the treasury direct bond brign in more intrest since its already at face value? What am I missing here?
How about changing career to be a pharmacy tech

Filed Under Investing | 2 Comments

How much worth Treasury Saving Bond EE series?

a worrier asked:


My wife bought a lot of sving bond series EE in 1991 thru 1997 and completely forgotten about. What is the current redemption rates ?

Filed Under Investing | 1 Comment

How do i know how much a payout will be on a bond dividend?

Greg S asked:


Say I buy a $1,000 treasury bond, that had the following information
29-YEAR 6-MONTH BOND
Issued: 11-15-2007
Matures: 05-15-2037
Interest: 5.000
% yield: 4.666
price per $100: $105.322155

Can someone break this down for me?
I understand the issue and mature dates.

Filed Under Investing | 1 Comment

Which of the following transactions takes place in the primary market?

Ann asked:


A. Buying 100 shares of Microsoft on the Nasdaq Stock Market
B. Buying a corporate bond that was issued in 1990
C. Selling 100 shares of Merck on the New York Stock Exchange
D. Buying a Treasury bond directly from the Treasury

Which of the following new securities issues would likely have the highest underwrinting discount?

A. A bond issued by the City of Denver
B. A bond issued by DuPont
C. A U.S/ Treasury bond
D. Shares of a start-up biotech firm

Filed Under Corporations | Leave a Comment

When the U.S. Treasury offers to sell you a bond for $613.81. No payments will be made until the bond mature,?

Charlotte D asked:


What if the U.S. Treasury offers to sell you a bond for $613.81. No payments will be made until the bond matures 10 years from now , at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?

Filed Under Investing | 3 Comments

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