Reuters reveals the unintended consequences of Obama's out of control spending that I've been writing about for months.
Federal Reserve puzzled by yield curve steepening
Sun May 31, 2009 3:48pm EDT
By Alister Bull - Analysis
WASHINGTON (Reuters) - The Federal Reserve is studying significant moves in the U.S. government bond market last week that could have big implications for the central bank's strategy to combat the country's recession.
But the Fed is not really sure what is driving the sharp rise in long-dated bond yields, and especially a widening gap between short and long term yields.
Do rising U.S. Treasury yields and a steepening yield curve suggest an economic recovery is more certain, meaning less need for safe haven government bonds and a healthy demand for credit? If so, there might be less need for the Fed to expand the money supply by buying more U.S. Treasuries.
Or does the steepening yield curve mean investors are worried about the deterioration in the U.S. fiscal outlook, or the potential for a collapse in the U.S. dollar as the Fed floods the world with newly minted currency as part of its quantitative easing program. This might be an argument to augment to step up asset purchases.
Another possibility is that China, the largest foreign holder of U.S. Treasury debt, has decided to refocus its portfolio by leaning more heavily on shorter-term maturities....Continue Reading
As a Navy Veteran, I am troubled by the lack of respect for veterans shown by many Americans. Atlas Shrugs has a post up that should shock anyone who loves this country.
Patriots and Vets Under Attack: Oorah banned!
Oorah banned
This ought to rattle every great American in their boots. I bet there are Obama stickers there .... (hat tip van)
Vet's Patriotic Stickers Under Fire FOX4
DALLAS -Frank Larison is a disabled veteran with more than 14 years of service, including more than a year of combat duty in Vietnam.
The 58-year-old former Marine now finds himself under attack by his Dallas homeowners association for displaying seven decals on his vehicle supporting the Marine Corps.
The board says the decals are advertisements that violate HOA rules, and must be covered or removed.
[...]
Larimore says the decals, ranging from the Marine emblem to Semper Fi slogans, aren't advertisements for anything. "You can't buy freedom," he reasoned.
Some neighbors are outraged.... Continue Reading
