Former Asst Treasury Secretary on Bailouts and Treasury debts

Legendary investor Warren Buffet says that a second dose of stimulus funds may be required for the U.S. economy as economic recovery looks distant.
As per former U.S.Assistant Treasury Secretary Mr. Paul Craig Roberts America has a debt of $57 Trillion on a GDP of only $ 12 Trillion.This U.S. debt goes up each year because big brokerage companies like Goldman Sachs and J.P. Morgan sell U.S. treasury bonds aggressively to foreign governments and private investors all over the world since it brings them handsome comission incomes. U.S. politicians actively support these activities as they find this a useful tool in resource mobilisation helping them to prop up large deficit budgets without bothering too much about repayment.This nexus between the Big Banks and the U.S. Government has lead to the large external debts and also brings about a situation where the Government must support the broker banks, simply because they bring in the revenue to keep the wheels of the economy well lubricated.


We all know that it is much easier to borrow then to actually earn your wages. And if debt can infinately fund your spending then there is no incentive to really toil hard. This is the only reason why the U.S. economy is increasingly loosing strength despite its increasing bulk, and why companies like General Motors and Chrysler are going bankrupt.Mr Roberts deep concern for the economy lies in the fact that erstwhile large investors of U.S. Treasury Bonds in Asia,Middle East, Far East and Europe are concerned about their investments and the future value of the U.S. Dollar.Already Russia, the Saudis and many other states have shifted substantial new investments to the Euro and China has entered into 1 to 1 barter deals with Brazil and some large mineral rich African nations.

Even the current GDP of $ 12 Trillion is inflated. As per Mr Roberts, even in this quarter the growth comes from transfer income which is actually the bailout funds and the interbank transfers of TARP funds used to do the CDS swaps. Mr. Roberts squarely blames President Obama for not taking action, but we all know it is hardly his fault. The main culprit if any is President Bush and the officials during the eight year Bush regime,which includes the Republicans. Though profligacy has long been a weakness of U.S. Presidents, President Bush and his cohorts including Mr. Paulson, Mr Geithner, Mr Bernanke and Mr. Summers took it to new heights by actively supporting the Broker banks to create manipulated demands and baloon transfer incomes . Most of these officials still control the U.S. financial system and keep on devising ways for larger debts, larger banks, larger balooning of the economy. The only fault of President Obama is that he has been unable to bring about a real change of these financial adminstrators and economy manipulators when history offered him a unique opportunity to do so.