We are broke. Not living within our means. If it was wrong for Americans to borrow money earlier this decade to purchase a house they couldn’t afford, why Obama making the very same mistake?
The United Kingdom failed to attract buyers for $2.5 billion of 40-year bonds, the United States Treasury had the same 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. This came on the heels of Germany having two failed auctions of its bonds already this year.
Briefing.com had the following to say: "Treasuries were battered on the poor showing on the 5 year auction. The 5-yr was swung off to add over 8 basis points to its yield, while the 7-yr, which has its offering tomorrow, saw a beat down of over 9bps. The market has enough concerns about global supply and this ugly offering of the “relatively” safe, mid-duration notes adds to that jaundiced view."
This is really, really, bad news. The kind of news you should ask your representatives about.
Bloomberg reported on what this means: "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."
The Congressional Budget Office’s forecast is over $9 trillion in deficits in the next ten years. So the Treasury will be auctioning off $1 trillion worth of paper a year forever!
Will there come a point when we’ll have the same difficulty selling our debt as the U.K. had today and Germany has had twice this year? What happens then?
The Obama administration and a Democratic-controlled Congress as they continue to spend money faster than it can be printed. They do NOT care!
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