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Dave Manuel
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Dave Manuel

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President Obama and his family had a net worth of between $935,015 and $6,644,999 as of the end of the 2013 calendar year #obama #barackobama

http://www.davemanuel.com/2014/05/18/president-obama-files-financial-disclosure-for-2013/
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So?
I'm concerned about the missleading features of your breakdown of the national debt.  You (as do a lot of people) seem to assume that most of that debt is used to fund our government's operations as a result of deficit spending. But in reality near a half of it is investors in US securities in a manner analogical of time deposits associated with buying CD's.  As time deposits, the money is there to return, with a little interest. If you give me $100 in return for an IOU promising to pay it back a year from now and I simply keep the $100 without spending it, treating it as a time deposit , then the only problem in paying you back may be the interest.
I doubt anyone can show that the Chinese, Japanese, Belgium etc. purchases of these securities are entering into the Treasury's general fund from which it funds government operations.  These are all kept at the Federal Reserve Bank in separate accounts.  Although the government owes the security holders the money plus interest at maturity, it is not as if the government will be at a loss to find money to pay that back without going to taxpayers.  First the principal is there at the Federal Reserve.  That just makes the interest the problem, and this is a tiny portion of the principal.  And it is not a problem.  
   Either the Fed will just create the interest out of thin air and give it back along with the principal, or the Treasury will issue securities and sell them to banks for the interest.  
   This gets us now to how Treasury handles such debts on these securities.  The government has been 'borrowing' by use of securities since 1790's.  It never pays back the original debt, but simply rolls it over by issuing new securities to swap for the mature ones held by the banks. A little interest goes to the bank along with the swap. Since the bank is getting the securities at a discount, the discount can include the interest on the previous security plus new interest to be paid at maturity.   So, if a debt is never fully paid, is it really a debt?  In theory the Treasury can go on forever rolling over the debts on its securities, as long as the banks agree to it.  If not,then they can put their securities up for sale at public auction.  But since these securities are mature, who will buy them?  They are owed the face value. Well, the Fed will buy them, if it needs some securities to swap with the Treasury for new ones, to be sold to banks to drain excess reserves from them during inflations. But the Fed will buy with money created out of thin air.  In the process that cancels the government's debt to the bank for the security.  Any money borrowed for spending via these securities (at deficit spending time) will now be debt free.
The Fed gets its money back in the swap with the Treasury for the new securities, using the old, mature securities in the exchange. Remember, though, Fed is also government in all these transactions.  It is using money creating powers delegated to it from Congress when it buys with money created out of thin air (or by digital entries in a spreadsheet). So, it is agent of the government and not owed (except for 6% of the interest on the mature CD). The Fed gets no appropriations from Congress, so this is how it funds its operations, with transaction fees of 6% of interest on the transaction.
One final word about why the government would sell securities to public and foreign investors?  It does this to help control inflation by keeping the money out of circulation as savings deposits. The investors get an iron-clad guarantee that their money will be there when they want it. It's a very safe investment for a little interest.
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http://www.davemanuel.com/more-problems-arise-for-jc-penney-173/

Would you buy shares of JC Penney at this level? #jcp   #jcpenney   $jcp
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Any chance I could buy S&P closing prices prior to 1993?
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Dave Manuel

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New Dr. Dre Net Worth page up

http://www.davemanuel.com/net-worth/dr-dre/

I estimate Dr. Dre's net worth is $855 million if the Apple deal goes through. Not quite hip hop's first billionaire, but close. #drdre   #dre  #beatsbydre 
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http://www.davemanuel.com/2014/04/25/apple-to-enact-7-1-stock-split/

Apple to split its shares 7:1 later in the year - is this just a gimmick? 
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#apple   #aapl  
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has a QB ever been savaged more over a two week period than Tony Romo has over the last two weeks? #cowboys  
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it's not really my "claim" - these are their official numbers. I realize that the debt increased those years - I wrote an article about it. 
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Greg Smith's profile photo
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Stock Trader / Programmer / Writer
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Long-time resident of the West Coast who spends far too much time at his computer. 
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Excellent sushi but they've outgrown their space. It's just too crowded in there now
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