Borrowing Costs

>>"More of our bonds are purchased at home now than were before the collapse."

Because people fled the imploding equities markets. They were willing to accept even no yield on 3 month treasuries just to have any place where there was less risk. Having the Federal Reserve sop up all the leftovers from the treasury auctions cannot last forever, and because it can't last forever, it is impossible to make spending projections based on current interest rates. We are monetizing our debt like fiends and it will brew up a storm of exorbitant borrowing costs.

Our borrowing costs will be much higher by 2012, and by 2015 certainly. If I turn out to be wrong, I'll come back here and say so.

If Obama is serious about helping the middle class, he will unwind all the globalization policies that put it on the path to ruin. I don't see that happening.

Anything he does that does not employ protectionism will fail. Anything he does that does not favor purely American industries and American workers to the exclusion of all outside predators will fail. We were suckered into globalization by anti-middle class and anti-working class interests, and it was a collaborative effort by both corporate centrist Democrats and corporate centrist Republicans, two gloves on the financial fist of Wall Street.