The Obama administration has embarked on a spree of borrowing that eclipses anything seen in world history. The Democratic Congress is nervous, but seems willing to go along. But this borrowing is not occurring in a vacuum; many other governments are also floating debt. So, who's going to lend the trillions of dollars that governments need to disguise the fact that their ideas are bankrupt? Maybe nobody.
Yesterday, the British government offered its "gilt-edged bonds" for sale. For the first time in over a decade, the auction failed as not enough buyers appeared to cover the bonds that were offered:
Fears are growing on the financial markets that Britain may not be able to repay the billions of pounds in debt it is amassing to rescue banks and revive the economy. The Government admitted yesterday that, for the first time since 1995, investors had been unwilling to buy the full complement of its so-called gilt-edged bonds at one of its official auctions.
Britain's failure roiled Wall Street, as Noel Sheppard reports:
Wall Street got rocked Tuesday by a "debt bomb" economists have worried about for decades. Hours after the United Kingdom failed to attract enough buyers for its auction of $2.5 billion of 40-year bonds, the United States Treasury had similar difficulties with its sale of $34 billion worth of five-year notes and was forced to raise their interest rate to a much higher yield than had been anticipated. Such problematic debt offerings came on the heels of Germany having two failed auctions of its bonds already this year.
The amount of debt the Obama administration intends to float dwarfs any historical experience. More from Bloomberg:
Treasury 10-year note yields rose the most in more than two weeks after an auction of $34 billion in five-year notes drew a higher-than-forecast yield, spurring concern record sales of U.S. debt are overwhelming demand. ... President Barack Obama's government is selling record amounts of debt to revive economic growth, service deficits, and cushion the failures in the financial system. Debt sales will almost triple this year to a record $2.5 trillion, according to estimates from Goldman Sachs Group Inc.
What most Americans may not yet understand is that the vast majority of the debt that the Obama administration intends to incur, not just this year but for years to come--assuming it can find the requisite creditors--has nothing to do with the present financial crisis. Rather, Obama intends to finance a grotesquely swollen federal government, with socialized medicine just one item on the agenda, by borrowing the money. How to pay it back? Hey, not our problem--Obama will be out of office by 2017 at the latest, so paying off trillions in needless debt will be up to our children.
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America-hating leftists lie to protect Obama's dangerous economic program : The left are pulling out all the stops to make sure Obama's programs of massive tax increases, colossal spending and borrowing, more regulatory controls and his appeasement Policy are imposed on the American people. In an effort to fool Americans leftists are trying to justify Obama's dangerous economic policies by saying they cured the Great Depression. This is a brazen lie. The extreme leftwing Campaign for America's future is playing a significant role in spreading this lying propaganda
Why Obama's big spending big taxing regime will cripple the US economy : Obama's statist dream of using high taxes and big government to drive the economy forward are doomed to failure. Unfortunately, the case for lower taxes is not as easily made as is the case for big spending projects. This is because the latter are built on economic fallacies that focus on end results instead of processes. The case for tax cuts and savings rests on sound economic logic and this must be solidly understood before lasting progress can be made
The Great Depression — then and now and bloody journalists: The economic crisis and the debate — what there is of one — about the alleged anti-recessionary effects of big government spending policies has once again raised the spectre of the Great Depression and once again our commentators get it wrong, particularly journalists, that pesty brood of pseudo intellectuals for whom honest research appears to be an anathema
In California it's bad economics as usual: California's politicians broke the budget deadlock by combining billions of dollars worth of spending cuts with billions of dollars worth of tax increases and billions of dollars worth of new borrowing authority. Chronically unable to live within their means, the governor and legislature apparently have concluded that fiscal business as usual is the way to resolve the state's financial crisis. As Ronald Reagan might have said: 'There they go again'
Heads roll in Havana as Raul Castro tightens his grip : Last week, Raul Castro purged almost twenty regime officials. The most prominent among the purged were the youngest and most reform-minded — at least as these things are measured within a Stalinist regime. All have now been replaced by diehard communists with military and secret-police backgrounds. So much for 'Hope and Change'
America: People vs their Government: The people of the United States are more honest and astute about the Arab-Israel conflict than is Obama and his advisors. They can see, especially after 9/11, that Fatah, Hamas and Al-Qaida are the part of the same Islamic ideology: Global domination by Islam
What is Marxism? : Marxist claims have been thoroughly discredited by history. Despite this fact thousands of academics and intellectuals still cling this patheted dogma by studiously ignoring anything that contradicts it: In doing so they reveal that Marxism is nothing but a power cult
Will what destroys Israel also destroy the United States?: Americans should realize that if Israel does not survive the Islamic onslaught and is destroyed, the United States will not be far behind. As long as people like Barack Obama are placed in charge of our country, our future is dim: the question is only which will destroy us first — socialism or Islam?
There is a vastly incorrect but rather striking article here comparing the attractiveness of Britain's female politicians with female politicians elsewhere. There's some pretty rough-looking British ones.
Obama’s middle class tax cut may not survive budget: "President Obama’s budget chief hinted Wednesday that the president’s signature campaign issue — a middle-class tax cut — will not likely survive a budget battle with Democrats on Capitol Hill. On a conference call with reporters in advance of the president’s trip to the Hill to speak before the Senate Democratic caucus, Office of Management and Budget Director Peter Orszag indicated that, while 98 percent of the budget mark-ups in the House and Senate are on par with the administration’s budget blueprint, some campaign trail promises, like middle-class tax cuts, may get left on the cutting room floor.”
Obama’s budget: It’s absolutely insane! “At his press conference last night, President Obama insisted once again that he inherited the budget deficit, and ‘we’re doing everything we can to reduce that deficit.’ But the deficits over the next 10 years that Obama proposed in his budget are not George Bush’s deficits. They are the deficits that Obama has proposed, resulting from the $1 trillion in increased spending he adopted in the no-stimulus stimulus bill, and the $400 billion supplemental spending bill he supported and also adopted the following week, and the $275 billion housing bailout he proposed the next week, and the $1 trillion bank bailout plan his Treasury Secretary just proposed this week, and the $638 billion he has proposed as a ‘downpayment’ on a new national health insurance entitlement. … Does this sound like he is ‘doing everything we can to reduce that deficit?’”
Karl Rove: Obama has made taxes and spending the big issues again: "Something powerful is stirring in the land, and it may not be good news for President Barack Obama, his agenda or the Democratic Party. Mr. Obama said Tuesday night his budget moves America "from an era of borrow and spend" to "save and invest." But people are realizing he would add $9.3 trillion to the national debt, doubling it in six years and nearly tripling it in 10 years, according to the Congressional Budget Office (CBO). How can that be "save and invest"? In his inaugural address, Mr. Obama told us, "The stale political arguments that have consumed us for so long no longer apply." He wants to turn to new issues of education, health care and green jobs, which he plugged at every opportunity in Tuesday's press conference. Suddenly, though, it doesn't seem like a time of new politics and new concerns. Many Americans are anxious -- and in some cases angry -- about a set of old issues: deficits, taxes and the national debt. Mr. Obama's radical budget, his administration's slapdash operating manner, and events such as the AIG bonuses have revived animosity over government's size and cost."
Capitalism is morally superior: “People say that capitalism is based on greed, which must be restrained. No it isn’t. It’s built on self-interest — which is perfectly natural to us all, and beneficial to our community. Markets are about free people, voluntarily exchanging cash for goods or services. You can only prosper in the market if you give your customers what they want. In every transaction, both sides benefit — they wouldn’t do if they didn’t — and with millions of sales and purchases going on every day, that spreads benefit through the whole society. Capitalism is a vast, worldwide collaborative system. It doesn’t need political arguments to decide what should be done. It doesn’t need force to make people produce things. It produces enormous variety and plenty without any conflict or coercion at all.”
Gordon Gekko is a Democrat: "How did Republicans get saddled with Wall Street? Obama just got the biggest campaign haul from Wall Street in world history, and Republicans still can't shake the public perception that they are tied at the hip to Wall Street bankers who hate them. Maybe if the financial capital of the nation were located in Salt Lake City, rather than Manhattan, the financial community would support Republicans. But Wall Street is a street located in New York City. No one in the top echelons of the financial industry who has a weekend place in the Hamptons is a Republican".
For more postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena
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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)