A FEARSOME HERD OF TYRANNOSAURUS REX APPROACHES THE US

[Solve et Coagula]

A FEARSOME HERD OF TYRANNOSAURUS REX APPROACHES THE US

21 MAY 2010 BY TPC

Does the USA need to fear those dreaded bond market vigilantes?

“Remember the bond market vigilantes, that frightening band of financial marauders who once roamed the earth like a fearsome herd of Tyrannosaurus rex? They were so scary that in February 1993, as President Bill Clinton struggled to reduce the federal budget deficit, James Carville quipped that he wanted to be reincarnated as the bond market so he could intimidate everybody.

Well, they’re baaack! Not in the United States, though. Here, the Treasury Department continues to borrow brobdingnagian sums of money at extremely low interest rates—about 3.5% for 10-year Treasurys and under 1% for two-years lately—even though everybody knows that the federal budget deficit is on an unsustainable path toward the stratosphere. (Could it be that not everybody knows?)”

Alan Blinder, WSJ May 20, 2010

Can you hear it? That drum beat? I can. It’s growing louder. It’s those evil bond vigilantes and they are on the attack. They’ve attacked Greece, they’re attacking Portugal, they’re attacking Spain and the USA is next on their radar. As Paris Hilton might say – “we are, like, so totally screwed”. Or are we?

Continue to read:
http://pragcap.com/a-fearsome-herd-of-ty...approaches

[FastTadpole]

Sounds scary!

Money is corrupted so bad now it really exists and is propped up solely on the basis of illusion. When people wake up to that fact hopefully we will have something in place lest we fall into chaos and fake poverty because of lack of motivation and a vehicle for commerce.

Hopefully people won't get to the point of spending $120 for a loaf of bread and wallpapering their homes with this fake currency before the realization sets in.

Money as it stands now is nothing more than a controlled control mechanism. It's a big joke but nobody is laughing.

/cynicism