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QE, Treasury Bonds, Emerging Economies and Chinese Gold

Listeners’ Questions, Peter’s Answers Audio – May 27, 2014

Listeners’ Questions, Peter’s Answers Audio – May 27, 2014

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Mark (US expat) in Singapore
I have developed a theory about how the US will get rid of the national debt. Borrowing is the equivalent of printing, except that there is interest to pay later. If the US could eliminate the interest then it could roll over debt forever and ‘borrowing’ would just be a disguise for printing money or currency inflation. Could QE and endless increases in national debt just be a vehicle for the Fed to acquire the national debt at virtually interest free terms? Hence, the Fed owns 25% of the debt now but could own 75% later and make it such a bad investment the holders of the other 25% will bail. Then the US government just rolls over debt as a permanent increase in the money supply. What are your thoughts on that?

Carey in Las Vegas, NV
As foreign countries quit buying our debt, will the Government seek to transfer 401k’s to purchase treasury bonds, nationalize them in the name of saving the retirement accounts, and then of course share with those that didn’t save?

Nathaniel in Birmingham, UK
I am heeding your warnings and looking to move my modest savings into silver and to invest in the emerging economies of the Far East. Is there a company in the UK you know of that could do this for me?

Ted in Naperville, IL
Peter you mentioned in one of your shows that you were getting a loan using your stock as collateral in order to purchase a condo. How do you go about getting a securities based loan, and what are the limitations on the purchases you can use this for?

Jim in Chicago IL
What do you know about the current Chinese gold policy? Are they hoarding, dumping, buying, selling?

Marion in Malaysia
Could you help me understand what really happened during the Asian Financial Crisis in 97?