Obama, Geithner CRAWL To Red China

It seems Obama is OUT of money; and Obama confirms it [Obama Is Broke]. Worse for Obama’s Hope and Change economic plan, statist Obama’s government gold mine, called Cap Off the Economy and Tax all energy Trade to Death, may not pass, with Earth cooling off rapidly.  If it does pass, the economy of the United States will be Obama Toast. Obama doesn’t realize it; but the bond vigilantes do.

Obama is so out of money, that tax-cheat Tim, Treasury Secretary and head of all tax cheats in the administration, must CRAWL, begging and scrapping, to Red China for more cash. “Please, Mr. Wen Jiabao, don’t foreclose on Obama; he has a really slick teleprompter.”

Bond Vigilantes Confront Obama as Housing Falters

“Chinese Premier Wen Jiabao said in March that China was “worried” about its $767.9 billion investment and was looking for government assurances that the value of its holdings would be protected.” The BIG SQUEEZE is on.

“The secular bull market in Treasury bonds is over,” Hoey said in a Bloomberg Television interview. “It ran a good 28 years. They’re never going lower. That’s it. It’s over.”

Shrinking Economy

Bonds usually rally when the economy is in recession and inflation is subdued. Gross domestic product dropped at a 5.7 percent annual pace in the first quarter, after contracting at a 6.3 percent rate in the last three months of 2008, according to the Commerce Department.

This time it’s different because the Congressional Budget Office projects Obama’s spending plan will expand the deficit this year to about four times the previous record, and cause a $1.38 trillion shortfall in fiscal 2010. The U.S. will need to raise $3.25 trillion this year to finance its objectives, up from less than $1 trillion in 2008, according to Goldman Sachs Group Inc., one of 16 primary dealers of U.S. government securities that are obligated to bid at Treasury auctions.

“The deficit and funding the deficit has become front and center,” said Jim Bianco, president of Bianco Research LLC in Chicago. “The Fed is going to have to walk a fine line here and has to continue with a policy of printing money to buy Treasuries while at the same time convince the market that this isn’t going to end in tears with fits of inflation.”

[…]The dollar has also begun to weaken against the majority of the world’s most actively traded currencies on concern about the value of U.S. assets. The dollar touched $1.4169 per euro today, the weakest level this year. […]

“The vigilante group is different this time around,” said Mark MacQueen, a partner and money manager at Austin, Texas- based Sage Advisory Services Ltd., which oversees $7.5 billion. “It’s major foreign creditors. This whole idea that we need to spend our way out of our problems is being questioned.” […]

Treasury Secretary Timothy Geithner, who will travel to Beijing next week, will encourage China to boost domestic demand and maintain flexible markets, a Treasury spokesman said yesterday.

Obama spokesman Robert Gibbs said the president is confident that his budget and economic plans will cut the deficit and bring down the nation’s debt.

Obama’s teleprompter may exude confidence, but the bond vigilantes are hearing none of it. Obama is out of cash; let’s see what Hope does for him.

H/T: The Obama File Latest Obamanations Bond Vigilantes Confront Obama


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