What if we held an auction and no one came?
posted at 9:26 am on May 8, 2009 by Ed Morrissey
Great Britain knows how that feels, and now so does Barack Obama. Treasury had to offer higher-than-expected prices to investors to get them to buy government debt, signaling a distrust of American economic policy and financial strength. That will have significant consequences for Obama’s deficit spending policies (via Instapundit):
Weak demand at a Treasury bond auction touched off worries in the stock market Thursday about the government’s ability to raise funds to fight the recession.
The government had to pay greater interest than expected in a sale of 30-year Treasurys. That is worrisome to traders because it could signal that it will become harder for Washington to finance its ambitious economic recovery plans. The higher interest rates also could push up costs for borrowing in areas like mortgages.
Investors also pocketed some gains after strong rally in stocks this week and ahead of the government’s April employment report on Friday. Investors were jittery ahead of the formal release of results from the government’s “stress tests” of bank balance sheets, which came out later Thursday.
Major stocks market indicators slid more than 1 percent, including the Dow Jones industrial average which lost 102 points after gaining nearly the same amount Wednesday.
Once again, this shows exactly how speculative the White House and the CBO have been in calculating deficits for the next decade based on Obama’s spending plans. Let’s take another look at the deficit projections from OMB and CBO:
Both sets of numbers depended on a certain level of economic growth, which so far hasn’t begun despite Obama’s predictions of rebound in Q1 from the application of the stimulus. It also depended on a constant supply of debt purchase at steady bond rates. These projections had to consider interest payments on all of the debt Obama planned to buy while running these deficits, and any hike in interest rates means that those interest payments will have to go up. That also means that we will have to spend more money than Obama projected, creating even higher deficits and the need for even more bond sales — and more interest payments on those.
It’s basically a Ponzi scheme, and it’s accelerating.
One of two things will have to occur to resolve the situation. Either the federal government will have to massively cut its spending in order to service all that debt at the higher interest rates now demanded, or it will have to pass massive new taxes in order to generate enough revenue to accomplish it. Which do you think Obama is likely to try?
Blowback
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I worry about the government’s ability to do anything except take away more of our liberties – that’s about all they’re good for these days – oh, and forgetting they tolerate torture…
Upstater85 on May 8, 2009 at 9:29 AM
There’s a third option.
Crank up the printing presses.
MarkTheGreat on May 8, 2009 at 9:30 AM
I’ve got some increasing home repair & family medical bills. I’m going to demand a huge raise from my employer.
: P
jgapinoy on May 8, 2009 at 9:31 AM
I imagine the taxes will not be pushed until–and this is just a wild guess–November 3, 2010. If the Dems–and this seems unlikely–pick up seats the day before, they will feel validated in what they have been doing (to us). If the Reps pick up seats, the drum beat of “we need to do this to be responsible” will start immediately.
Snowed In on May 8, 2009 at 9:32 AM
Obama may have to bring back the death penalty for tax evasion……
izoneguy on May 8, 2009 at 9:32 AM
Yup, there will be some of that, & some of tax-the-rich-&-almost-everyone-is-rich.
jgapinoy on May 8, 2009 at 9:32 AM
You forgot door #3 – simply print the money. Of course, that will create hyperinflation.
Seriously, I’m expecting a mix of higher taxes and printed money. After all, as Colin Powell said, “we” want more government, not less.
steveegg on May 8, 2009 at 9:33 AM
Great minds….
steveegg on May 8, 2009 at 9:34 AM
Wouldn’t that wipe out his cabinet?
Upstater85 on May 8, 2009 at 9:34 AM
Well, who didn’t see this coming, especially since Great Britain (not just England ;-) went through the same thing?
Oh, that’s right, the WHITE HOUSE didn’t see this coming.
hawksruleva on May 8, 2009 at 9:34 AM
I’m pretty sure what the government is going to try; my assumptions are based upon the history of a Liberal mind. Higher corporate taxation will come soon, followed by thousands of increases to the private citizen coming behind the shield of “closing loop holes.”
I’m wondering what we, the people, are going to do in return. Tea Party demonstrations had better be the beginning of this revolution rather than the finish line.
Keemo on May 8, 2009 at 9:36 AM
If some pigs weren’t more equal than others,….
steveegg on May 8, 2009 at 9:36 AM
Everyone knows, Obama’s rules are only for the peons. The ruling class is exempt.
MarkTheGreat on May 8, 2009 at 9:37 AM
It’s a Fonzi scheme! Obama is so cool, he doesnt need math!
javamartini on May 8, 2009 at 9:37 AM
MarkTheGreat on May 8, 2009 at 9:30 AM
That only works for the short term, then inflation occurs and you run into a situation where the money is so worthless it does not matter how much you print or in what denomination. Extreme example but you get the point. Then the Government has to default or declare worthless certain debts (which has happened, but not here). Or scrap the current dollar and issue a new one (which has also occurred). Then we will have hit the third world paradise Obama is trying so hard to bring us towards.
LincolntheHun on May 8, 2009 at 9:38 AM
LOL…I don’t think there is a deep enough pocket for Barry & The Crew to reach into to pay for their programs. Every time they reach in more jobs get lost and the smaller the pocket gets. Sooner or later it won’t even be deep enough to hold lint.
Limerick on May 8, 2009 at 9:38 AM
We already have various liberals proclaiming that Obama is not talking about raising taxes, he’s only closing loopholes.
MarkTheGreat on May 8, 2009 at 9:38 AM
Pretty much wraps up my opinion of the dream team.
Upstater85 on May 8, 2009 at 9:38 AM
Chaos will appear to be an orderly affair when the mindless masses finally discover how much trouble they’re really in.
rplat on May 8, 2009 at 9:39 AM
Does this mean he might have to uh, cut the voucher programs again?
Upstater85 on May 8, 2009 at 9:39 AM
LincolntheHun on May 8, 2009 at 9:38 AM
It also doesn’t work because once the banks catch even a hint of inflation, they start demanding higher interest rates for loans. Including money that is “loaned” to the Fed.
MarkTheGreat on May 8, 2009 at 9:39 AM
steveegg on May 8, 2009 at 9:36 AM
Animal Farm reference Nice!
I sometimes tease my dog by saying “two legs good four legs bad”
I don’t think he read the book, ‘cause he just wags his tail at me in response.
Or he is plotting a coup again.
LincolntheHun on May 8, 2009 at 9:40 AM
If I am not mistaken, the Bush administration mainly sold 7 and ten year bonds. Thus, many of these will be coming due during the Obama administration. I would think the rates of these new bonds will be much higher than the ones that they will replace. So we got that going for us…which is bad.
WashJeff on May 8, 2009 at 9:41 AM
That graph cannot be shown often enough. The current policy is unsustainable, and people need to prepare themselves for the coming inflation, which is one of the rosier scenarios we face.
BadgerHawk on May 8, 2009 at 9:42 AM
We could always action off our congressmen to the highest bidder…
Upstater85 on May 8, 2009 at 9:42 AM
Why would any investor trust Obama after what he just did to the bond holders at Chrysler?
ctmom on May 8, 2009 at 9:44 AM
This is only the beginning. What happens when nobody wants to lend us money and our cash runs out???
NATIONAL BANKRUPTCY. Its happening at a breathtaking pace. I don’t even think they know how to control it any more.
sonofdy on May 8, 2009 at 9:44 AM
The bidding will start at 500 Zimbabwean dollars.
WashJeff on May 8, 2009 at 9:46 AM
Okay, I can even get behind that, but its still not enough.
sonofdy on May 8, 2009 at 9:46 AM
Unfortunately, George Soros already has ownership of a large majority of them.
teke184 on May 8, 2009 at 9:46 AM
450 Zimbabwean dollars!!!!!!!
sonofdy on May 8, 2009 at 9:47 AM
That graph cannot be shown often enough. The current policy is unsustainable, and people need to prepare themselves for the coming inflation, which is one of the rosier scenarios we face.
BadgerHawk on May 8, 2009 at 9:42 AM
Where can one get a pdf of that graph? I want to print it out and post it on my refrigerator, and hand it out to all the liberal asinine people I meet.
catlady on May 8, 2009 at 9:48 AM
No Takers?
Try a bounty on the bastards! I’m in!
dhunter on May 8, 2009 at 9:49 AM
Unfortunately, there is a third option, and I am not sure O & Co are above using it: crank up the presses, and print the money you need.
ManUFan on May 8, 2009 at 9:49 AM
I would only bid the lint in my teenage son’s pocket for a Congressman… and even then that is too high.
catlady on May 8, 2009 at 9:50 AM
Where are all the lefty moms out there? Surely, they love their children enough to protect them from this coming fiscal train wreck…
beatcanvas on May 8, 2009 at 9:50 AM
Try a bounty on the bastards! I’m in!
dhunter on May 8, 2009 at 9:49 AM
Now if I could use them for target practice….
catlady on May 8, 2009 at 9:51 AM
Obama’s Shop of Horrors.
Hungry again.
FEED ME!!!!
Loxodonta on May 8, 2009 at 9:51 AM
Left moms are too busy running kids to soccer practice and getting their nails done…
catlady on May 8, 2009 at 9:51 AM
Good one Loxodonta
catlady on May 8, 2009 at 9:52 AM
MarkTheGreat on May 8, 2009 at 9:30 AM
I was thinking that very thing…
catmman on May 8, 2009 at 9:53 AM
+1
sonofdy on May 8, 2009 at 9:53 AM
We’d have to pay someone to take them and that’d put us further in debt.
Oldnuke on May 8, 2009 at 9:53 AM
Nice try, Ed. But you forgot to mention in your “analysis” the 17 Billion, Obama saved yesterday. I’m going to crunch that in my “we’re screwed-o-meter” program and see if I get a different result.
*whiz* *boink* *thwoop* *zip*
Okay, let me just check my print out…
Well this is odd. My print out just says, “IDIOT.”
Must be something wrong with the program.
Weight of Glory on May 8, 2009 at 9:55 AM
We need a donation box for this at Hot Air. Please!
Loxodonta on May 8, 2009 at 9:56 AM
One doesn’t see a NIN reference too often.
BadgerHawk on May 8, 2009 at 9:58 AM
Ginger Dollars here we come.
Bishop on May 8, 2009 at 10:00 AM
Can you just right click and save it as something other than a pdf?
BadgerHawk on May 8, 2009 at 10:00 AM
Couldn’t our government force him to give them up – kind of like the Chrysler deal…
Upstater85 on May 8, 2009 at 10:01 AM
Joe Sixpack hasn’t quite tuned in on this problem yet.
If gas prices spike again, and credit gets tighter, he’ll notice .. just in time for summer.
We’ll see how it goes.
Mew
acat on May 8, 2009 at 10:01 AM
Ed is such a spoil sport. Words like massive deficits and higher borrowing costs and tax hikes don’t compute when Obama is promising us stuff. We’ll worry about all that later…meanwhile, lets punish business and the “wealthy” to make us feel better, too.
/sarc
changer1701 on May 8, 2009 at 10:01 AM
OH, OH, OH! I know, he`ll blame Bush!
ThePrez on May 8, 2009 at 10:01 AM
Yeah, loopholes like the mortgage interest deduction.
Oldnuke on May 8, 2009 at 10:01 AM
I found it very appropriate when referring to our government.
Upstater85 on May 8, 2009 at 10:01 AM
I don’t know about Quote of the Day, but this is
IDEA OF THE DAY
Upstater85 on May 8, 2009 at 10:02 AM
Barack Obama’s lunatic spending spree has nothing, NOTHING, to do with fighting the recession.
Kensington on May 8, 2009 at 10:03 AM
In the words of getalife:
Bush is history
Bush is irrelevant
Obama is all-knowing!
Upstater85 on May 8, 2009 at 10:03 AM
Obama is hopelessly lost and is stumbling around like a drunk on an escalator. He grabs for the safety of statistical point estimates like a child chasing fireflies as job losses appear to go down and unemployment goes up. The people will eventually discover the disaster they’ve had thrust upon them and when they do, chaos will seem like relative calm.
rplat on May 8, 2009 at 10:04 AM
500,000 + jobs lost under Bush = Bad, Bad, Bad!
500,000 + jobs lost last month under Presidente Pinnochio = Pretty good, on or way to recovery!
REVOLT!
And hang the media alondgside em!
dhunter on May 8, 2009 at 10:04 AM
Great! Fannie Mae wants another $19B.
I think they are going have to alter all paper currency to show all the founders and Jackson with their jaw dropping due to the amount of times they are being printed.
WashJeff on May 8, 2009 at 10:04 AM
Are you calling our Great Leader a liar? It’s the Death Valley Re-education facility for you. Expect Acorn momentarily.
Oldnuke on May 8, 2009 at 10:05 AM
I thought we could bring back the guillotine… ///sarc (no, not really, but brings a funny image of a headless chicken running around)
Upstater85 on May 8, 2009 at 10:05 AM
MSM: And the problem with that is?????
Loxodonta on May 8, 2009 at 10:07 AM
Yes and bring it on b!tch.
By that I mean I repectfully diagree with dear leaders approach.
;-)
sonofdy on May 8, 2009 at 10:12 AM
I vote for the viking appraoch. Just go from country to country ransacking them.
unseen on May 8, 2009 at 10:12 AM
Meanwhile, no one is watching the Federal Reserve.
voiceofreason on May 8, 2009 at 10:12 AM
disagree. coffee. stat.
sonofdy on May 8, 2009 at 10:12 AM
You forgot:
loudmouth883 on May 8, 2009 at 10:14 AM
So, by the BO White House’s own estimates, whether Obama serves 4 or 8 years, he’s leaving his successor with a larger deficit than he got from Bush. Does that not sound wonky to anyone else who’s sick of the crying about the mess Obama inherited?
Sir Corky on May 8, 2009 at 10:16 AM
Ah, stab in the back to Obama!
Upstater85 on May 8, 2009 at 10:16 AM
Since I gave up hope, I feel a lot better.
Mew
acat on May 8, 2009 at 10:16 AM
I get more depressed every time I see that graph.
loudmouth883 on May 8, 2009 at 10:18 AM
The left has no mom’s…they just get abortions…those kids are so expensive….
izoneguy on May 8, 2009 at 10:19 AM
Me three, growl
izoneguy on May 8, 2009 at 10:19 AM
That’s the bile coming out of Obama’s mouth.
Upstater85 on May 8, 2009 at 10:19 AM
Let’s not get to excited about this,afterall,we have “smart power” on our side:
Clinton wraps Asia trip by asking China to buy US debt
Feb 22 03:50 AM US/Eastern
http://www.breitbart.com/article.php?id=CNG.42a44b0f5d9cf5c9762e80574e79a3d5.831&show_article=1
And how is that working out:
China has ‘canceled US credit card’: lawmaker
4 days ago
http://www.google.com/hostednews/afp/article/ALeqM5i4estRSYeFBIII9kezxnP4jgoGZQ
Dam#,didn’t they get the memo.
Maybe Obama can get his White House lap dog reporters to go after them.
Afterall,Obama has the hardworking Americans and their need for jobs as a top priority.
(via Drudge)
Under Restructuring, GM To Build More Cars Overseas
By Peter Whoriskey
Washington Post Staff Writer
Friday, May 8, 2009
http://www.washingtonpost.com/wp-dyn/content/article/2009/05/07/AR2009050704336_pf.html
UHHHHHH…looks like Obama mainly has his political agenda and what helps him as a top priority.
But the press will not press him on these issues,he does have a “gift” you know.
That and the fact that it has now been established that Michelle is the “greatest first lady ever” is much more important than these silly economic disasters that loom in our future.
Baxter Greene on May 8, 2009 at 10:21 AM
Wasn’t this last auction just under 20B? The Treasury has a long way to go, and if the genie is out of the bottle reflecting lack of confidence in our long term ability to pay,………how quickly could it go up?
Nov. 3rd, 2010 seems like a long way off. How many trillions do we have to auction off before then?
Starlink on May 8, 2009 at 10:22 AM
Let’s look at this. thanks to Clinton (who took us off the 30 year T-bill and placed us on the 5 and 10 year Tbill to give the illusion of a surplus because it is cheaper to finace at 5-year and 10 year than at 30 year in the 90′s)and to Bush’s runaway spending and now Obama we now have around $12 Trillion of Debt to refinace every 5 to 10 years. Which means our debt is dependent on low short term rates. If we as a nation would have kept the 30-year Tbill than we would not have to fund the addtional $12 trillion.
Be that has it may under Obama we not only have to fund that $12 trillion we also must come up with another $1-3trillion in new loans. At 3% interest the interest payments on those loans is approx $300 billion per year
If the interest rate goes back to Carter levels of 18% which is possible due to inflationary pressures we would need approx $1.8 trillion just to pay the interest on the debt. That is 50% of this years proposed budget. This is not sustainable. It will not be sustainable if the interest rate goes to 6% let alone 18%
Worse case is you can not raise taxes enough to pay for the interest payments and you default on the debt which means capital will flee the USA and we become a qaint backwater banna republic with a massive military.
Which means war on a world wide scale
unseen on May 8, 2009 at 10:23 AM
No one in their right mind will buy these, or get anywhere near the government while the punk-thug in chief is threatening to go insane on them.
dogsoldier on May 8, 2009 at 10:24 AM
Price of gas in the Midwest has increased $.30 in the past 10 days. 500,000+ out of jobs last month.
OK, so i can’t afford to put gas in the car that i have a loan on now, i’ve lost my job, and you want me to buy a NEW Chrysler or GM?
I don’t think so.
Don’t stand too close to the fan. Fecal matter is about to start raining on Obama.
PappaMac on May 8, 2009 at 10:25 AM
Don’t stand too close to the fan. Fecal matter is about to start raining on Obama.
PappaMac on May 8, 2009 at 10:25 AM
But…but we are seeing “glimmers of hope” in the economy…so says the WH and wall street.
unseen on May 8, 2009 at 10:28 AM
The problem is that that graph is the “Happy scenario”. What if it is worse that the CBO and BO anticipate, which it most likely will be due to his stupid policies giving us a “Dead Cat Bounce” in the economy? Hyperinflation, Stagnation and Carter level interest rates.
I should note that in addition to these figures you should add any sort of vouchers like “food stamps”. Programs like this are “money” but as a separate economy, its effects are hidden. Till the Bill Comes Due.
GunRunner on May 8, 2009 at 10:31 AM
How about deciding that it’s constitutional and patriotic to not pay back our debtors? Worked with GM.
gwelf on May 8, 2009 at 10:33 AM
What we need is to get this information out. Even if it only goes out on Fox News, it will help.
Unfortunately, the Administration will try to blame us for creating a panic. But citing information that is publicly available is not “creating” a panic. It is warning about the future. And the worse the flap the try to create, the more it will come back to them when the predictions come true.
njcommuter on May 8, 2009 at 10:33 AM
In deed.
Count to 10 on May 8, 2009 at 10:34 AM
Option #1 (cut spending) isn’t an option for those in charge so we’re left with Option 2 (tax) or 3 (print more money).
But don’t worry because the adults are in charge and…
“We can no longer afford to spend as if deficits don’t matter and waste is not our problem. We can no longer afford to leave the hard choices for the next budget, the next administration — or the next generation.” — President Sotero
rockhead on May 8, 2009 at 10:34 AM
For those who say they will have to print, that’s exactly what Quantitative Easing is and we’ve been engaged in QE for months now. When Helicopter Ben announced the FED’s QE strategy he said it was to cap Treasury yields, (artificially cap rates I would add).
Well, Ben, how’s that working out for you? I’ll tell you how–it’s a giant failure. You’ve lost control of the long end of the yield curve haven’t you, Ben? Study your chart, Ben, because the numbers don’t lie. QE is a giant failure! You’ve blown hundreds of billions on NOTHING! Yields are now higher than when you started your little QE operation. I wouldn’t doubt that you’ve spent even more than we know by using proxy buyers. Maybe someday we’ll get a FED audit and find out for sure. Ben, you blew a big old bubble that popped (as did Greenspan), you’ve got rates at essentially zero (ZIRP) and QE doesn’t work, what other Keynesian nonsense what will it take before admitting you are out of bullets and you’ve bet your entire career, indeed your life, on a bankrupt ideology? My guess is you will double down, you’ll keep on until you own every single Treasury out there because you can’t admit you were wrong.
And to CONgress and Obama, you’re spending was the call to action for Bernanke. Without your recklessness, Bernanke would not be doing what he’s doing. By now I suspect all of you have seen the nosedive in year over year tax receipts. Quite the little waterfall on those charts, hug. Those numbers are just plain ugly aren’t they and there is no sign of improvement any time soon, so just how long do you think you can keep this spending orgy up? I can almost bet it won’t continue for four years.
Folks, don’t be fooled by the Obama-lovers on CNBC (or even our friend Kudlow) and what you see happening day to day on Wall Street, look deeper at what is really going on. The green shoots stuff is so much b.s. We’re in dire straits and they are making ALL the wrong moves.
Tick tock, tick tock, how long before the inevitableBOOM!
flyfisher on May 8, 2009 at 10:34 AM
The chart also doesn’t include “emergency” spending like war costs and the 100 billion obama wants for the imf. Never did hear if that got sent or not.
sonofdy on May 8, 2009 at 10:35 AM
flyfisher on May 8, 2009 at 10:34 AM
Nicely stated flyfisher!
Keemo on May 8, 2009 at 10:36 AM
Quite frankly, I have no idea how much has been spent since 1/20/09.
I bet nobody does.
sonofdy on May 8, 2009 at 10:37 AM
For as long as people will buy it, he’ll blame the previous administration. There is a reason he went whole hog on the budget at the beginning of the first term…one, he has the most political capital right now and two, when it comes time to pay for what he’s done, he can say it was an emergency necessary at the time due to Bush.
In simpler terms, he ran up a credit card bill when he first got in. When people complain about paying it back, he can say that it was done to fix the mess he was left with. That allows him and the Democrats to point at GWB for years.
Considering the mood of the country and the status of the MSM, I’m betting he can get at least 2 terms out of that.
Asher on May 8, 2009 at 10:37 AM
When any government injects its own set of rules when dealing with free market principals, there is a distinct conflict of interest, especially when the government is using taxpayer revenue. The fact that “our government” had to offer higher interest rates on these Treasurys to achieve their intended results flys in the face of the free market. Can you guess who pays these higher interest rates? Obama and Gietner have no idea what they are doing and there will be no stabilization in the stock markets until the government gets out of the business.
Rovin on May 8, 2009 at 10:37 AM
The investor’s relationship is based on a couple of things: future earnings predictions…and trust. Since the government earns nothing, produces nothing, is essentially a parasite on the back of working people, that leaves trust. President Obama has shown himself, in 4 short months, to be utterly untrustworthy. Anyone who gets in bed with this federal government is a fool. An absolute fool. They’ll bleed you dry, and if you complain about it, they’ll use all the resources of the federal government (including the Washington propaganda corps) to destroy you. Being connected to Barack Obama in any way, shape or form is a lose-lose situation. There just is no upside to it at all. For God’s sake, the man has shown quite overtly that he will do anything — anything — to get what he wants. I believe him. He’ll do anything. He’ll destroy anyone. He has but one policy, and it’s scorched earth. Nothing is off limits. Doing business with the federal government today really is a deal with the devil. I wouldn’t buy their bonds. I wouldn’t bid on a 5-figure public works project. And I wouldn’t do anything in between. I think all potential investors should remind themselves that we have a president who thinks earning money and making profits is eeeeevil.
Rational Thought on May 8, 2009 at 10:37 AM
Baxter Greene on May 8, 2009 at 10:21 AM
Dang Baxter; another awesome post. If fact, I’m passing that post on to a bunch of my buddies for some lunch time brain food.
Keemo on May 8, 2009 at 10:38 AM
Isn’t there a time-honored tradition that petty dictators simply devalue their currency overnight?
TexasDan on May 8, 2009 at 10:39 AM
As we have been down this road before (remember Carter?), I can tell you what’s coming: a nasty cocktail of high inflation (as the currency devalues so that the money supply matches the actual value in the economy — probably more the case in the first derivative), high interest rates, high taxes and high unemployment. Yep, it’ll be the workers’ paradise.
Let us face the central question: if a country can borrow (ie: push tax increases onto our posterity), tax and spend its way to prosperity and freedom, why isn’t Africa the most prosperous, free continent on the planet? The fact of the matter is that Africa has the poorest, most oppressed populace. Coincidence?
mr.blacksheep on May 8, 2009 at 10:39 AM
For those talking about hyperinflation, all that printed money has to find it’s way into wages, which is not happening. Most of the printed money is just a figure on a bank balance sheet right now. Also, they aren’t printing anywhere near as fast as we’re depreciating. I’m not saying inflation isn’t possible, but you can’t just look at money supply to get the picture. Yes, money supply is increasing, but not as fast as asset depreciation, wage destruction, and credit destruction. I don’t know what the latest numbers are, but several months ago I was reading that it would take something like $20 trillion in printing just to balance out.
We may see price increases, perhaps steep increases, in certain sectors like food and oil, but that alone won’t be evidence of inflation and certainly not hyperinflation.
flyfisher on May 8, 2009 at 10:39 AM
GunRunner on May 8, 2009 at 10:31 AM
Damn good point on the vouchers like food stamps SS and other ‘entitlements’, luckily the Supreme Court back in the 60′s decided that a Government “promise” (that you would get social security payments)was not binding.
Worse at the Federal level what is people go to barter or local specie (some cities have this)other underground economy measures where more dollars are pulled from the system.
LincolntheHun on May 8, 2009 at 10:39 AM
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