In One Eye
Thursday, May 05, 2005
I see that the feds are bringing back the 30-year bond. Of course, when the ostensibly profligate Democrats were in power, the bond could be retired, so flush was the federal government. Now that the true prodigals, the Republicans, are in power, the bond needs to be revived because, quite simply, the government is desperate for the money.
The notion of pay as you go is simply alien to these morons. Tax cuts for the wealthiest, a war costing billions of dollars a day? No problem: We'll simply write another rubber check.
We'll see how attractive these long term bonds are to the foreign countries—i.e., Japan and China—that have helped prop up the American economy for the last three decades.
UPDATE — And now we find out that "$96.6 million in cash [can] not be properly accounted for [in Iraq]. The total include[s] more than $7 million that was simply gone, according to [a] report from the Special Inspector General for Iraq Reconstruction."
Let's hope the Asians find the new bonds attractive before we become a banana republic in more than name.