O'Neill: Treasury Bonds are NOT REAL ASSETS!!!

verfasst von Tofir, 14.07.2001, 22:32

von The Privateer:

...Such an item reared up and bit us on July 10. It was a statement made by U.S. Treasury Secretary Paul O'Neill. Actually, the statement was a repeat of one that he made to Wall Street executives back on June 19. We didn't take that one too seriously though. One can say ANYTHING to"Wall Street executives".

But THIS time, Mr O'Neill made his remarks to the August U.S. Congress!

What Mr O'Neill said was this:
"We have no assets" - in the U.S. Social Security trust fund.

Two Democratic Congressmen immediately took Mr O'Neill to task. (This is not a direct quote):"Of course we do - it's chock-a-block full of TREASURY BONDS!!"

True, said Mr O'Neill, but those aren't REALLY real assets:"...because the Social Security trust fund does not consist of real economic assets, we are left to rely on the federal government's future decisions to either raise taxes, reduce spending or increase borrowing from the public to finance fully Social Security's promised benefits"

Great thundering horny toads! The Secretary of the U.S. Treasury does NOT consider the debt paper he is in charge of rolling off the presses as being REAL ASSETS!! Of course, you know, he's right - but it is (how can we put this delicately) impolitic of him to say so - especially to a bunch of politicians sequestered in the Nation's Capitol.

U.S. Treasury bonds - and other Treasury paper of shorter maturites - just so happen to be the"reserves" behind every currency in the world. They are the"assets" that every Central Banker in the world spends time in the basement gloating over. Remember King Midas letting Gold coins run through his fingers with glee. Imagine a modern Central Banker doing the same. The difference is that what our modern financial hero is wallowing gleefully in are TREASURY BONDS.

TREASURY BONDS are the ultimate"glue" which holds the present world financial system together. But Mr O'Neill has just dropped a megaton bombshell. He has said, in public, that they are not"REAL ASSETS"!...

Man wird sich beizeiten an diese bezeichnende Aussage O'Neills erinnern!

Gruss

tofir



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gesamter Thread:

• O'Neill: Treasury Bonds are NOT REAL ASSETS!!! - Tofir, 14.07.2001, 22:32
  • Re:? - McMike, 14.07.2001, 23:06
    • Re: Schon richtig so owT - JüKü, 15.07.2001, 12:32
    • Re: Völlig richtig interpretiert. Der US-Staatsbankrott erfolgt alsbald! (owT) - dottore, 15.07.2001, 13:57
  • Re: Danke, tofir! Das: - dottore, 15.07.2001, 13:55
    • Wie siehst du demgegenüber die Unternehmensanleihen? - Heller, 15.07.2001, 15:13
      • Re: Ganz einfach: So! - dottore, 15.07.2001, 17:07
  • Der Die-Rente-ist-sicher-Blues auf amerikanisch, Mercie. - Diogenes, 16.07.2001, 16:51