While you are being mesmerized by President Obama's leisurely style, resonating voice and media adulation, here is a little something to ponder about the state of America.
At the end of August 2008, before the financial bailout and the stimulus, the publicly marketable segment of the U.S. national debt was 4.88 trillion. Of that, $2.56 trillion was in the intermediate-term Treasury notes, $1.22 trillion was in short-term Treasury bills, $582.8 billion was in long-term Treasury bonds, and $521.3 billion was in TIPS.
At the end of March 2011, by which time the Chinese had dropped their Treasury bill holdings 97 percent from their peak, the publicly marketable segment of the U.S. national debt had almost doubled from August 2008, hitting $9.11 trillion. Of that $9.11 trillion, $5.8 trillion was in intermediate-term Treasury notes, $1.7 trillion was in short-term Treasury bills; $931.5 billion was in long-term Treasury bonds, and $640.7 billion was in TIPS.Who would have thought that capital would become the only remaining moral force in public governance? The bond market will decide America's political fate, just as it has made decisions that politicians don't dare touch in Greece, Ireland and Portugal. No politician alive has the nerve and power to cut the size of the government behemoths we've created under the influence of socialist ideology. And one of the two parties is ideologically committed to growing it. Few have been able to reduce its onerous demands on the body politic's purse and patience. It always wants more. There's always another dozen bureaucracies to create in order to provide six-figure salaries to the annual legions of social-science majors graduating from America's colleges and universities.
Before the end of March 2012, the Treasury must redeem all of the $1.7 trillion in Treasury bills that were extant as of March 2011 and find new or old buyers who will continue to invest in U.S. debt. But, for now, the Chinese at least do not appear to be bullish customers of short-term U.S. debt.
Big government liberals in both parties, but mostly the Democratic party, steered us to this precipitous state of affairs. Their solution to profligate spending?--more taxes, of course. Naturally, that will smother the last remaining spark of life in the economy. But, who cares? Life will be more "fair" in America once nobody has anything: nobody except the illuminati and government bureaucrats, that is; in short, our betters.
Noman is disgusted at the nauseating spectacle playing out before us in DC.