Texas tried to do the only sane thing a state could do in the face of the TSA: Ban them. And what happened? A bunch of Feds showed up — probably dressed like mobsters — and threatened to cancel all flights to Texas if the bill passed.
What a heart warming story. I wonder if we have any more… Hmm… Well, there’s an E. Coli outbreak in Europe. Obama’s arm still hasn’t gotten tired of patting himself on the back. Meanwhile, Iran gets closer to The Bomb. Donald Trump shows us how to eat Pizza. Buster the dog finally finished his 1,200 mile trek. Another credit rating company has threatened the US. Greece and the rest of the world still haven’t learned. Europe still hasn’t learned. Cell phones don’t just cause cancer, silly, they cause brain tumors! Celebrate diversity! And China has kicked in our techno doors again while blaming us for starting a global internet war.
Hey, speaking of China, it seems that they are really looking for trouble. Now they’ve dumped 97% of their short-term Treasury Bond holdings. No, no, not $97 in T-Bonds, ninety-seven percent! Good news, huh?
Yeah, you read that right: Good News!
“But Ben, how on earth can China dumping a ton of bonds be good for us?” Because they set a shining example for the rest of investors! They should do the same! It’s about the only smart thing a person can do at this point. Dump your bonds! The government doesn’t know what it’s doing! Besides, any bonds we leave behind the Fed can just print money to buy them from itself! Or is it the Treasury giving Social Security money to the Feds to buy T-Bonds… Uh, no… Er…
Okay, okay, fine: In case you haven’t caught on, China dumping our bonds is awfully nice of them. The citizens of America should send them a nice big Thank-You card. Why? Because this will force the government to cut something. So far the government has dumped the Ryan plan, the Paul-Toomey budget, and the Obama plan (Oh, wait… Did the Obama plan even have cuts?) As insignificant as they all were, it would have been nice to shave something off the ol’ debt block (er… Clock.)
China had, at its peak, $205.4 billion in short-term T-Bonds, that’s now $5.69 billion. They’ve also dumped some of their long-term bonds. Collectively, (including all who have cashed-in T-Bonds, of which China is key) before the end of March 2012 the Treasury is gonna have to cough up $1.7 trillion dollars. Consequently, the debt would be $12.3 trillion instead of $14 trillion.
Through this the government will be cutting more, faster than any plan presented by any politician. It’s a miracle! Thank you China! Whee! And, hey! Look! The world didn’t end! Meteors didn’t fall from the sky when China cashed in bonds! Now all those raving, scared, lunatics — who saw Chinese ownership of US bonds as a cloud of doom and molasses over our head — don’t have to worry.
The only people who could totally mess up this stroke of luck are the politicians (as usual.) If they pay the bonds through inflation or taxes — sorry, I repeat myself — then we have a different cloud of doom and molasses over our heads. But if the Republicans take hold of this chance and cut trillions of wasted dollars from the debt and/or deficit, we’ve won the war… For… Uh… 1/14 of the debt…
Money, get away
Get a good job with more pay and you’re okay
Money, it’s a gas
Grab that cash with both hands and make a stash
New car, caviar, four star daydream,
Think I’ll buy me a football team
Money it’s a crime
Share it fairly but don’t take a slice of my pie
Money so they say
Is the root of all evil today
But if you ask for a raise it’s no surprise that they’re
Giving none away.”
–Money by Pink Floyd