When asked about the concerns expressed by China and most European countries regarding his apocalyptic spending plans, Obama held British Prime Minister Gordon Brown as an example of one of his supporters.
The next day, Thursday, PM Gordon Brown presided in the first failed British bond auction since 1995. Britain wanted to sell 1.75 billion pounds worth of government bonds. The world wanted to buy only 1.65 Billion pounds. PM Gordon Brown’s government had to buy back their own bonds!
Later that day, our own auction of $34 billion dollars of five year treasury bonds didn’t turn out as expected and I think I heard that the coverage was as low as two times supply. That’s called the bid to cover ratio and it was down almost 9% from February.
This may be a sign that the world’s appetite for our debt is waning. If this spills over to the longer term paper, and so far it hasn’t, Obama will have managed to bankrupt the country.
In a previous column I asked who will finance the Obama reparation programs once the Chinese stop lending us money? That question is yet to be answered.
Here Charles Comiskey, head of U.S. government bond trading in New York at HSBC Securities USA Inc. speaking to the Wall Street journal “It was a terrible auction…It called into question government bond auctions going forward.”
Here is Obama bragging about his friend Gordon Brown just hours before the later faced the reality of the world not wanting to buy his bonds. ( Will we be next?)
“I wonder, sir, as a candidate who ran concerned about the image of the United States globally, how comfortable you are with the Chinese government, run by Communists, less confident than they used to be in the U.S. dollar and European governments, some of them center-left, some of them Socialist, who say you’re asking them to spend too much?”
This was a question asked by Major Garrett during the March 24 Snooze Conference…and below is the Somnambulist in Chief’s response:
“Well, first of all, I haven’t asked them to do anything. What I’ve suggested is, is that all of us are going to have to take steps in order to lift the economy.
We don’t want a situation in which some countries are making extraordinary efforts and other countries aren’t with the hope that somehow the countries that are making those important steps lift everybody up. And so somebody’s got to take leadership.
It’s not just me, by the way. I was with Kevin Rudd, the prime minister of Australia, today, who was very forceful in suggesting that countries around the world, those with the capacity to do so, take the steps that are needed to fill this enormous hole in global demand.
Gordon Brown, when he came to visit me, said the exact same thing.”