Instapundit has posted this chart a number of times but since it never seems to make it to the pages of the New York Times and our president keeps claiming that he’s only spending because that ol’ Debbil’ Bush made him do it, I thought I’d put it out here. It makes me feel better, anyway.
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But Chris, our progressive friends (i.e. O supporters) will tell us that the spending will pay for itself with cost savings, enhanced productivity, etc. Of they will suggest that the deficits as a percentage of GDP are not record levels and were higher during other periods of calamity (i.e. after WW2).
I could point out that the O’s are using some rather rosey economic projections that may not come to pass which will only push the potential deficits higher. But then I am accused of being an obstructionist or a member of the “Party of No”.
Putting politics and ideology aside, Mr. Bond Market begs to differ with the deficit naysayers. Yesterday, the spread between short and long US Treasury issues hit an ALL TIME record high. This can be a sign of several related factors: increased inflation expectations, increased concern on the value of the US Dollar in the future, the potential for the USA to lose its AAA rating, coming flood of US Treasury securities and more. Likely a combination of all, the message the market is sending to Mr. O, Tiny Tim and Benny B is loud and clear. Quantitative easing is approaching being labeled a failure as consumer rates are now starting to rise as well.
Listen to the noise about the Dollar and US Treasury debt coming from the Chinese, Japan’s LDP, Russia, Venezuela and others and we should all be VERY worried how the US Government is going to finance all that it is trying to accomplish. I worry for our future but I am deathly afraid of what we will be leaving our children.
You can find the spread chart here:
http://www.bloomberg.com/apps/quote?ticker=.USYIELD%3AIND
I agree with FlyAngler. Unfortunately, Republicans didn’t gave a damn “about the children” when Reagan proved that deficits don’t matter. Nobody gave a damn “about the children” when Clinton generated surpluses and Gore committed to continuing them. Nobody gave a damn “about the children” when Bush enacted a $450 billion Medicare prescription drug benefit and started two wars without funding any of it. Now, all of a sudden, Republicans care about the children–but unfortunately hope they will be too stupid when they grow up to appreciate their predecessors’ complete lack of sincerity. This is the best reason of all to gut education funding.
Signed, a die-hard fiscal conservative and former Republican.
Well, Arouet, I agree with you mostly, but I’m pretty sure it was Reagan who gave us ketchup as a vegetable in school lunches, and you’ve got to love the man for that alone!