I would like to come back as the bond market . . . You can intimidate everybody

 Yippee-ki-yay.

 

 

James Cue Ball Carville: Hillary deleted the emails because the Russians wrote them

Sleeping with the enemy for 23 years, Bush cheerleader Mary Matalin switches to Libertarian Party

Quoted here:

"I'm not a Republican for a party or a person," she explained, adding she pledged party loyalty in more of a "Jeffersonian, Madisonian sense." For her, the Libertarian Party "continues to represent those constitutional principles that I agree with." Matalin, who served as the campaign director for Bush No. 41 and as an assistant to Bush No. 43, swears her latest move isn't because of Donald Trump's ascension in the GOP, noting that so far she likes what she sees. 

Elsewhere she tried to explain:

“I didn’t leave it, it left me,” she added. “When we had a standard-bearer with impeccable credentials in Ted Cruz and he’s loathed by the party leaders and he’s called a ‘wacko bird’ by the party leaders, where does that leave us? They left us!” 

Evidently this is about the complete absence of any Republican commitment to reign in the size and scope of the federal government, but why doesn't she just come out and say so if that's what this is about? You know, like maybe mention Obamacare and Cromnibus?

That said, government got pretty big and intrusive under her pals George Herbert Walker Bush and his son George W. Bush when they were presidents. Hate speech legislation, Americans with Disabilities Act, savings and loan bailouts, drugs for seniors, TARP, et cetera. Where was the libertarian outrage then, huh?

At least we know she can't stand the John McCain, Lindsey Graham wing of the Republican Party.

Famous Democrat Notices Romney Doesn't Understand Conservatism

James Cueball Carville, here:

"[H]e doesn’t understand conservative doctrine."

Pay It Down Now, Or Pay A Lot More Later

“I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.”

-- James 'Cue Ball' Carville, quoted here

You Don't Hear the Tea Party Warning of Civil Unrest, But You Will Hear Democrats

Like James Carville, here:

But Carville said the consequences aren’t limited to politics alone. He warned of heightened risk of civil unrest with the bleak economic picture.

“You know, look — this is a humanitarian — you know, you’re smart enough to see this,” Carville said. 

“People, you know, if it continues, we’re going to start to see civil unrest in this country. I hate to say that, but I think it’s imminently possible.”

ObamaCare Will Increase Deficits By Over $500 Billion in First Decade

Sorry. Just correcting the lies.

The article was posted here:

March 25, 2010

Bond Markets Reflect the True Cost of Obamacare

By Michael Barone

Not many people noticed amid the Democrats' struggle to jam their health care bill through the House, but in recent weeks U.S. Treasury bonds have lost their status as the world's safest investment.

The numbers are pretty clear. In February, Bloomberg News reports, Berkshire Hathaway sold two-year bonds with an interest rate lower than that on two-year Treasuries. A company run by a 79-year-old investor is a better credit risk, the markets are telling us, than the U.S. government.

Buffett's firm isn't the only one. Procter & Gamble, Johnson & Johnson and Lowe's have been borrowing money at cheaper rates than Uncle Sam.

Democrats wary of voting for the health care bill may have been soothed by the Congressional Budget Office's report that it would reduce federal deficits over the next 10 years. But bond buyers know that the Democrats gamed the CBO system to get a good score.

The realities, as former CBO Director Douglas Holtz-Eakin pointed out in The New York Times, are different. The real cost is disguised by the fact that the bill includes 10 years of revenue but only six years of spending. It includes $70 billion in premiums for long-term care that will have to be paid out later. It excludes $114 billion in discretionary spending needed to run the program. It includes nearly half a trillion dollars in unrealistic Medicare savings.

Holtz-Eakins's bottom line: The bill will not lower deficits, but will raise them by $562 billion over 10 years. Treasury will have to borrow that money -- and probably pay much higher interest than it's paying now.

Moreover, once the bill is fully in effect, the Cato Institute's Alan Reynolds points out, its expenses are likely to grow at least 7 percent a year -- significantly faster than revenues. At that rate, spending doubles every 10 years.

No wonder that Moody's declared last week that the Treasury is "substantially" closer to losing its AAA bond rating.

It's not only the federal government that is heading toward insolvency. State governments will have to spend more under the health care bill -- $735 million in Tennessee alone, according to Democratic Gov. Phil Bredesen.

And state governments are already facing a huge problem called pensions. The Pew Charitable Trusts estimates that state government pensions are underfunded by $450 billion. My American Enterprise Institute colleague Andrew Biggs argues in The Wall Street Journal that the real figure is over $3 trillion.

The reason: State governments set aside cash to invest in pensions, but they typically assume that their investments will rise 8 percent a year indefinitely. They haven't been getting such high returns and are not likely to do so in the future. But they are under legal obligations, which courts won't allow them to escape, to pay the pensions. Retirees get paid off before bondholders, which means that states are going to have to pay more interest when they borrow.

Back in the 1990s, Clinton adviser James Carville said that if he was reincarnated he would like to come back as the bond market -- "because you can intimidate everybody." Governments, like all organizations, need to borrow routinely. But investors won't lend unless they think they will be paid back. And they will demand higher interest rates as their loans become riskier.

On Sunday, 219 House Democrats, soothed by their leaders' gaming of the CBO scoring process, voted in reckless disregard of what the bond market has been telling them. Some may share Speaker Nancy Pelosi's optimism that the government's looming fiscal disaster can be avoided by imposing a value-added tax -- in effect, a national sales tax.

But, as we know from the experience of high-tax Western Europe and relatively low-tax America over the last three decades, higher taxes tend to retard economic growth. Lower economic growth means less revenue for government than in CBO projections. Less revenue means more borrowing -- and at some point lenders are going to call a halt.

Barack Obama's project of transforming the United States into something like Western Europe is, according to the CBO, raising the national debt burden on the economy to World War II levels. I see train wrecks ahead -- as the bond market forces huge spending cuts or tax increases first on states and then on the federal government. It will make what happened in the House Sunday look pretty.