It’s almost as if Democrats weren’t in power for four years:
Sen. Charles Schumer (D-N.Y.) on Monday advised House Speaker John Boehner (R-Ohio) to ignore conservative members of his conference in order to hammer out a long-term spending proposal with Democrats.
The third-ranking Senate Democrat said a growing number of Tea Party-backed Republicans are putting too much pressure on the top Republican to push for deep spending cuts that cannot clear the Democratic-controlled upper chamber, increasing the likelihood of a government shutdown.
“It is becoming clear that the path to a bipartisan budget deal may not go through the Tea Party at all,” he said. “In order to avert a shutdown, Speaker Boehner should consider leaving the Tea Party behind and instead seek a consensus in the House among moderate Republicans and a group of Democrats.”
Stories like this is what make most Americans despondent over elected officials who apparently are content to sit around, bitch and do nothing about our problems.
The only reason why the Congress is even debating a continuing resolution in March of 2011 in the first place, is because when they had control of both chambers last year, Pelosi and Reid and all the rest decided to shirk their duties as elected representatives and run for political cover from a coming election and sit around not passing a budget. Kicking the can down the road, giving the next Congress the problems. Cowardly buffoons are what they are.
The world’s largest bond fund has gone ultra bearish on the United States, dumping all of its U.S. government-related debt holdings.
The move by Bill Gross’s $236.9 billion PIMCO Total Return fund completed last month comes in the wake of a vicious Treasury market sell-off and just days after he questioned who will buy Treasuries once the Federal Reserve halts its latest round of bond purchases in June.
Gross, who also helps oversee a $1.1 trillion investment portfolio as PIMCO’s co-chief investment officer, has repeatedly warned against U.S. deficit spending and its inflationary impact, which undermine the value of government debt and push up yields as investors demand more compensation for risk.
Gross expects further carnage. Just last week, he told Reuters Insider that a 4.0 percent yield for 10-year notes is a “rational expectation” if the Fed “disappears as the buyer of last resort.”
Gross, as with many other investors, has raised red flags over demand for Treasuries when the U.S. central bank ends its controversial quantitative easing program. This week, he posed the following in his widely read monthly report: “Who will buy Treasuries when the Fed doesn’t? The question really is at what yield, and what are the price repercussions if the adjustments are significant.”
“U.S. government bonds are not a safe haven,” Jim Rogers, the global investor who predicted the 2007-2009 housing-market crash, said in a telephone interview from Singapore. “I cannot conceive of lending money to the U.S. government for 30 years.”
Jim Rogers and Bill Gross kinda know what they’re talking about.