Comments on: Summary of Conference Call – Congressmen McCarthy, Campbell, McHenry, and Ryan

By: Skanderbeg

Skanderbeg — Wed, 01 Apr 2009 17:04:23 +0000

That’s basically the rub – as we’re seeing debt auctions start to fail in other places.

If the debt can’t be auctioned, they’ll have to either trim the sails or “sell” the debt to the Fed – which amounts to just creating play money. That’s where the dollar-debasement really kicks in, loss of confidence in the currency, etc.

Those are the mechanics. How they play out remains to be seen, and also what the electoral consequences might be….

By: Dave_in_Fla

Dave_in_Fla — Wed, 01 Apr 2009 15:45:22 +0000

The entire process is fascinating. Does the Fed/Treasury have an option to raise capital if China decides to not buy the bonds? I guess they could print money, but I suspect that deciding to print $1T is going to drive us to the high inflation point, that will require significant increases in interest rates to combat.

I honestly can’t see a future that doesn’t include something akin to Japan’s lost decade. Ed Koch was right, “Sometimes the voters must be punished”.

By: Skanderbeg

Skanderbeg — Wed, 01 Apr 2009 14:58:53 +0000

Politically, you’re doubtless right.

But I’m starting to think (and I’m not alone in this) that the limiting factor will be an inability to sell all the debt that they want to sell to fund this spree.

The underlying assumption is that the demand for that debt is essentially infinite; there are already a number of signs (as noted above and back in the 3/17 post-c.c. report) that this is already breaking down.

If the Fed starts buying the debt, then we’ve breached something far more horrid.

By: Dave_in_Fla

Dave_in_Fla — Wed, 01 Apr 2009 13:03:56 +0000

Obama is going to get his $1.8T deficit and pretty much everything he has asked for, including cap and trade.

I don’t believe that there are any Democrats that will buck him in the end. They might play small games at the edge to allow them to try and avoid potential backlash in the future. But the political calculus seems to be that the majority of voters don’t give a damn about deficits. Just like they don’t give a damn about abortion.

All we can do really is try to fight and raise as much objection as possible, but actually stopping this in congress is not going to be possible. The only way to stop what is happening is to affect changes in attitudes among the voters, and that requires a grassroots effort. The Teaparties need to be wildly successful, and be significant enough to require media attention.

By: roscopico

roscopico — Wed, 01 Apr 2009 04:29:34 +0000

He hails from Janesville WI and GM turned many from conservative to “what have you done for me lately” types… it is easy for a critter to be ideologically pure in good times.
I have great respect for Paul Ryan… and he is right. The debt auctions will fail to a greater extent in the future. This debt is untenable.
But let us duly note this is the same Paul Ryan (R-WI) who climbed on the outrage bandwagon to vote to retract the AIG bonuses-thus kicking the rule of law squarely in the nuts.

A contract is a contract, right?

Later, paul ryan (lowercase after the fact) admitted the mistake, stating it was probably unconstitutional (ex-post-facto, bill of attainder).
I had high hopes, especially as I rally for anyone from the land of Cheese and Beer, but paul ryan failed.

Jim Sensenbrenner for President!

A vote is a vote… and I had such high hopes.

By: Mike gamecock DeVine

Mike gamecock DeVine — Wed, 01 Apr 2009 04:05:07 +0000

its still not strong enough. We have to call out the dems on MORAL grounds on how their policies hurt the poor and middle class both in their effect in the future and in their absence of action NOW to put people to work NOW.

But this is an improvment over the past weeks.

By: bobojake

bobojake — Wed, 01 Apr 2009 02:53:20 +0000

obamas craps and shove tax