Oh, You Think You're Gonna Crank Out Bonds?

I’d give the 30 year auction today a big fat stinking “F”…

The so-called yield curve touched 373 basis points, the most in at least 29 years, as the bonds drew a yield of 4.52 percent, compared with an average forecast of 4.483 percent in a Bloomberg News survey of five of the Federal Reserve’s 18 primary dealers.

Mediocre demand Bloomberg goes on to say…..

Uhhhhh… no.

That might have something to with this from Politico:

In a bold but risky year-end strategy, Democrats are preparing to raise the federal debt ceiling by as much as $1.8 trillion before New Year’s rather than have to face the issue again prior to the 2010 elections.

“We’ve incurred this debt. We have to pay our bills,” House Majority Leader Steny Hoyer told POLITICO Wednesday. And the Maryland Democrat confirmed that the anticipated increase could be as high as $1.8 trillion — nearly twice what had been assumed in last spring’s budget resolution for the 2010 fiscal year.

America the subprime borrower.

Make no mistake – this is pushback.  “We” didn’t incur this debt Steny, you and your pals did.  Remember, Steny, America said by a more than 100:1 margin NO to TARP.  You passed it anyway.

You dished out over $1.4 trillion in trash last year, and are $300 billion in the hole in two months this year – already.  For the math-challenged that’s $1.8 trillion for this fiscal year, if your profligacy continues.

Go ahead, boyz, try to bail everyone out that’s a Wall Street bigwig.  Keep it up – the bond market will take care of you soon enough, and America will go “bang” – literally.

Oh, I’m not the only one saying it either.  Nor is it just “bears” like Roubini.  Try Australia’s opposition finance spokesman Barnaby Joyce:

THE OPPOSITION finance spokesman, Barnaby Joyce, believes the United States government could default on its debt, triggering an ”economic Armageddon” which will make the recent global financial crisis pale into insignificance.

Senator Joyce told the Herald yesterday he did not mean to alarm the public but there needed to be a debate about Australia’s ”contingency plan” for a sovereign debt default by the US or even by a local state government.

They’re already making contingency plans down under….. is it time to short the US government – and should we go long baskets?

Just curious.