There will never be a failed US Treasury auction... until there is"The antidote to hubris, to overweening pride, is irony, that capacity to discover and systematize ideas. Or, as Emerson insisted, the development of consciousness, consciousness, consciousness."
-Ralph Ellison"Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one."
-Charles MackayFrom Brian Rogers via ZeroHedge
Do you think the US will always and forever be able to pay for our over-bloated military-industrial complex and our wars of choice?
Do you think the federal housing agencies will always and forever be able to subsidize the real estate industry with money losing, non-economic mortgage loans?
Do you think the government will always and forever be able to pay on the promises they've made regarding Social Security, Medicare and Medicade?
Do you think the government will always and forever be able to extend debt-enslaving, subsidized student loans to anyone with a pulse?
Do you think the fiat ponzi central planners at the Fed will always and forever be able to manipulate the Treasury curve to whatever levels the Oracles of Delphi decide?
If you answer yes to the above, ask yourself this: how would all of these things be affected if the average interest rate paid by the US was to rise to 5%? At today's debt level of $15.6 trillion, the interest expense would be approximately $780 billion or about 35% of total government revenues. Welcome to the United States of Greece. Next stop, bankruptcy...Continue reading...