The week began with your editor wondering how the bond market would choke down another $81 billion in U.S. Treasury debt. On Monday, it swallowed $40 billion in three-year notes with gusto, and even belched in satisfaction. Demand, analysts said, hadn’t been that strong since 1990-when the bond vigilantes used the bond market as a weapon to discipline government spending.
November 13th, 2009 | Dan Denning | 6 comments | ContinuedAll Posts Tagged With: "bond vigilantes"
Inflation or Deflation?
The feds are more incompetent than even we suspected. They are trying to cause mild inflation – say, 4%…maybe 6%…even 8%. But they aren’t doing a very good job of it. Their efforts are too hesitant…
July 15th, 2009 | Bill Bonner | 13 comments | Continued
Look out! It’s The Bond Vigilantes!
This is the media name for the bond traders who scuppered Bill Clinton’s big spending plans during his first term. Back then, the market was capable of imposing some fiscal discipline on the U.S. government by forcing it to pay higher rates of interest for the debt it sold to finance its spending plans.
February 12th, 2009 | Dan Denning | 3 comments | Continued