Wells Fargo chief economist John E. Silvia said the U.S. appears to be taking the same steps as Greece and Portugal in regards to its budget, in an interview with CNBC today.
- 1:54 The plot in Greece and Portugal sounds an awful lot like the same plot that’s going on in the United States. But the characters have different names.
- 2:02 In the U.S. the challenge is coming to grips with our more moderate pace of growth that doesn’t generate the revenue necessary pay for these entitlements.
- 2:52 We are not the dominant economy. And our pace of growth has moderated.
- 3:38 With the end of QE2 and no QE3, which is the message I get from FOMC minutes, the Fed is not gonna be a buyer of treasuries.
- 3:41 Japan and China are saying enough is enough. We are not gonna buy treasuries at these interest rates. We will buy them at higher interest rates and a weaker dollar.
- 4:00 The dollar is losing its position and interest rates are rising. That is how markets adjust.