Establishment Republicans, Nation Loses
This morning at the open when the cloud of doom and gloom was blackening out the sky, the 10 year Treasury was trading up. Now that we have a deal that increases the debt ceiling, the 10 year is trading down. Why?
Because we are broke and the pols just struck a deal to continue getting broker. Default is not an issue. A political system that can't reign in spending to save its life, a party in charge of two of three branches of government that wants absolutely unrestrained spending, and a media complex that propagandizes for bigger government to a low information voting public that can't do math and tell its fiscal ass from its budget elbow spells...
It spells "Holy Shit, we really are going broke unless the bond vigilantes save us." The Bond Market Vigilantes, however, are scared of fighting Janet Bernanke's $85 billion per month money pumping Fed. We are so f**ked.
Inflation is coming. Higher interest rates are coming. Brace.
Politics can't solve our fiscal woes, only going belly up can. I've said it before and if this past few weeks' evidence isn't enough to convince you, well...
UPDATE: $17 trillion. Next stop $20 trillion and then let's elect Hillary, because we all know she's a real problem solver. Enjoy it America.
Because we are broke and the pols just struck a deal to continue getting broker. Default is not an issue. A political system that can't reign in spending to save its life, a party in charge of two of three branches of government that wants absolutely unrestrained spending, and a media complex that propagandizes for bigger government to a low information voting public that can't do math and tell its fiscal ass from its budget elbow spells...
It spells "Holy Shit, we really are going broke unless the bond vigilantes save us." The Bond Market Vigilantes, however, are scared of fighting Janet Bernanke's $85 billion per month money pumping Fed. We are so f**ked.
Inflation is coming. Higher interest rates are coming. Brace.
Politics can't solve our fiscal woes, only going belly up can. I've said it before and if this past few weeks' evidence isn't enough to convince you, well...
UPDATE: $17 trillion. Next stop $20 trillion and then let's elect Hillary, because we all know she's a real problem solver. Enjoy it America.
posted by Donny Baseball at 1:32 PM
4 Comments:
You are in finance. You should know, there are two sides to a balance sheet.
Yes, and what is the other side of our balance sheet? It's GDP because last time I checked, the feds ain't selling any land or other possessions. Debt service is always weighed against GDP. Our GDP has not been growing as fast as our debt these last few years, which means we are falling behind.
Now perhaps you are referring to total national wealth, which would be mixing public and private balance sheets, which is actually what the lefties ultimately want - they spend on what they want and you hand over your assets to pay for it. That is the long game for the progressives.
My point is either way, it is bad for free enterprise and individual property.
Is there an asset side to the balance sheet of the US gov?... if so, why would one not take in consideration the asset side of the equation?
Not that I am aware. The US government owns alot of land, but I haven't been hearing much about how we might sell land to cover our debts. The asset side is essentially the power to tax, but this, despite all attempts, never seems to move the needle. The tax take has been about 18% of GDP for decades regardless of tax rates. The asset side is really your money when they come to steal it
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