The mainstream media would never make this connection (at least, not until a Republican is president again), but let it be known that the slaughter of the 30-year long bond was the DIRECT RESULT of Barack Obama saying he will veto any bill that seeks to balance the federal budget.
Obama wants reckless spending until America financially implodes. Investors are going to get wise to the fact that there won’t BE a 30-year Treasury bond in thirty years. Because there won’t be a viable United States to make good on it.
As Obama Says He Will Veto Any Republican “Cut, Cap” Deficit Bill, Long Bond “Dragged To Slaughter House”
Submitted by Tyler Durden on 07/18/2011 12:38 -0400Just because someone is dead set on making Apple the only flight to safety in the world (and Gold of course, but unlike the iPad one can’t really eat this particular tradition), around the time (10 minutes ago) Obama threatened he would veto the Republican proposed vote to raise the debt ceiling coupled with a cap on spending and balanced budget amendment to the constitution, the selling off spilled over to Treasurys, which as the chart below demonstrates are broadly lower across the curve, but most emphasized at the 30 Year spot, which as Russ Certo says (see below) is being “dragged to the slaughter house.” Alas, judging by bank trading today the 2s30s steepening is completely irrelevant for bank stocks, for the simple reason that i) nobody needs any new mortgages and ii) nobody actually pays their mortgages. This is the second day since last week in which there is coordinated selling in stocks and bonds. Expect much more bond weakness with each day there is no bond deal.
Commenting on the move, Gleacher’s Russ Certo told Bloomberg that “vigilantes make a symbolic statement” about debt ceiling negotiations. “It’s the issue most sensitive to government ineptitude” Certo says of 30-yr bond “It’s all about the long bond as the 10-yr is being dragged to the slaughter house.” We couldn’t have said it better.
It’s long past time to realize that Barack Obama is an enemy to business, he is an enemy to the U.S. economy. And either Obama goes or America goes.
I’ve been pointing out that business leaders have predicted that Barack Obama would destroy the U.S. economy. I can literally quote myself quoting myself quoting those business leaders on that. From my February 13, 2009 article titled, As Economy Tanks Under Obama, CEOs, Investors Say, “We TOLD You So”:
And what is causing this incredible momentum to the economic meltdown under Obama’s watch?
Let me quote myself – even as I quote from the September/October issue of Chief Executive Magazine:
People are most concerned about jobs right now; maybe they should stop listening to mainstream media ideologues and start listening to the people who actually create jobs:
Chief Executive Magazine’s most recent polling of 751 CEOs shows that GOP presidential candidate John McCain is the preferred choice for CEOs. According to the poll, which is featured on the cover of Chief Executive’s most recent issue, by a four-to-one margin, CEOs support Senator John McCain over Senator Barack Obama. Moreover, 74 percent of the executives say they fear that an Obama presidency would be disastrous for the country.
“The stakes for this presidential election are higher than they’ve ever been in recent memory,” said Edward M. Kopko, CEO and Publisher of Chief Executive magazine. “We’ve been experiencing consecutive job losses for nine months now. There’s no doubt that reviving the job market will be a top priority for the incoming president. And job creating CEOs repeatedly tell us that McCain’s policies are far more conducive to a more positive employment environment than Obama’s.”
“Disastrous for the country.” That doesn’t sound good. And that’s about as optimistic as the CEO’s get about Barack Obama:
“I’m not terribly excited about McCain being president, but I’m sure that Obama, if elected, will have a negative impact on business and the economy,” said one CEO voicing his lack of enthusiasm for either candidate, but particularly Obama.
In expressing their rejection of Senator Obama, some CEOs who responded to the survey went as far as to say that “some of his programs would bankrupt the country within three years, if implemented.” In fact, the poll highlights that Obama’s tax policies, which scored the lowest grade in the poll, are particularly unpopular among CEOs.
“Bankrupt the country within three years.” There. You want socialism, you can have it. “Spread the wealth around” so that country itself ultimately becomes as broke as the defaulting homeowners and the defaulting mortgage houses we keep hearing about.
The Chief Executive Officers were very clear in their assessment: an election of Barack Obama would result in an economic disaster. And don’t think that a significant part right now of the terrible climate for the economy, and for business and jobs, is who is running the show.
Obama’s disastrous economic policies would “bankrupt the country within three years.” And here we are, two years and seven months later, facing default. We’re right on schedule. And the CEOs had the economic understanding to recognize that it would ALL be Obama’s fault.
Now, the only thing that Democrats are skilled in (to put it the other way, they are incompetent at everything else), is demonization. Democrats know how to demonize, demagogue, fearmonger and backstab better than anyone on the planet, bar none.
But business experts PREDICTED we would be in this situation; and they well understood and continue to understand who is causing this crisis: Barack Hussein Obama.
I also wrote an article earlier this year titled Instability, Food Riots And A Heaping Dose Of ‘I Told You So’ which referenced my November 24, 2008 article titled Renowned Economic Forecaster Says US Headed For Total Collapse. The 2008 article contained a prediction by Gerald Celente that under Obama, we would have revolution, food riots and tax rebellions by 2012. And we’re right on schedule.
This is why I have been so angry. When I heard those Jeremiah Wright tapes (the racist, Marxist, anti-American “reverend” whom Obama called his “spiritual mentor” for over 20 years), I knew that Barack Obama was a truly evil man. You don’t sit in a toxic, poisonous, hateful environement like that for that long if you aren’t genuinely evil yourself. And I knew that we were headed for “God damn America.” It was as though I had had a vivid vision of the future – culminating in the implosion and collapse of the country that I have loved and served.
We’ve got a top very-recently former SEIU official caught on tape talking about deliberately imploding America by deliberately destabilizing the already destabilized housing mortgage crisis. And I point to Obama’s words regarding SEIU: “Your agenda is my agenda (3:15 in the video below).” He promised SEIU “to make your agenda a reality” (1:22 into the video below).
And prior to the SEIU (whose agenda is Obama’s agenda) official describing the agenda to financially implode America, I was writing about the liberal goal of the destruction of America by means of the “Cloward and Piven” approach to implode America through the sheer massive weight of its welfare system.
Things are bad. And they’re certainly going to get worse. Not that the man we foolishly and despicably elected to be our president gives a damn.
Start Thinking Right 