Brother, Can You Spare A Dime?

What if you held an auction of Treasury securities and nobody came to buy?

Well, it hasn't reached that point yet, but we may be headed in that direction. There was a weak response to the most recent auction, as noted in this AP report. The government was forced to pay higher interest than it planned.

By the way, Wall Street noticed, and stocks tumbled.

So, do you still think Obama's plans to spend us out of all of our problems are good ideas? We can only pay for government spending in three ways. First, we can raise taxes. Of course, we are already doing that and there aren't enough "rich" people to pay for everything. Second, we can borrow. Unfortunately, the massive growth of our debt and the administration's underhanded dealing with banks and Chrysler's creditors, may be putting a dent in our ability to borrow. Finally, the Treasury can just print more money. That will, of course, lead to inflation.

Oh well, maybe I'll go out and buy a wheel-barrow.