Its official: Washington has admitted that its budget deficit is a problem.
Well, that may be overstating it. The US Treasury has acknowledged, though, that the red ink that is flowing through its veins and onto Karl Rove's pants is something of an issue.
So, having abolished the 30 year long bond in 2001 - because of the healthy surplus handed it by the Clinton administration - the venerable institution held its first sale of such bonds this week. There's nothing like a few tax cuts and wars on terror to get you in the mood for a bit of liquidity, and the government's previous tactic of betting the odd billion on NFL games went up in smoke when the New Jersey cops got wind of it.
Pension funds were so pleased to have the long-bond option back, it felt just like the old days. Well, not quite..this week's paper is paying 4.5 % a far cry from the 5% plus you would have got in 2001...
Apparently this $ 14 billion plus bond sale did all kinds of interesting things to the inverted yield curve, that phenomenon that puts economists into a state of arousal and prompts financial experts to warn about impending recessions.But, if we pretended to have the slightest notion of what an inverted yield curve is [ let alone a yield curve that's right side up ], that would be a blad faced fib.
Whatever direction this yi3eld curve is going, it was a big hit with the markets. Now, if only Dubya can make his friends in Congress stop building bridges to nowhere and naming shiny new highways after themselves,America might grow up to one day enjoy surpluses like its big brother, Canada...

The US government must learn to significantly cut government spending & find ways to increase its income. In order to avoid economic disaster, it is urgent that the budget deficit be significantly decrease.

Unfortunately many countries are already switching from dollar to eurodollar due to lost of confidence in the US. If this trend continues, economic disaster will surely happen in the very near future.

The Republicans in congress have lost their conservative way by being worse than the Democrats (a hard task) at pork-barrel spending. Ethics is a funny thing in politics because it takes on a meaning that would baffle Mr. Webster.

The average citizen is living on too much credit and does not find it a dire state when the government does the same. Deficit spending is normal during war but tax cuts are not – one has to pay for these things. How many people buy a new home and then ask their company to cut their salary? Maybe it is time for a war tax above the normal spending amounts.

Well, if they want to tax something, they should tax the lottery, and casinos. Look at all the billions going out the door.

Indian casinos are not taxed but the distribution of earning to the tribal members is taxed.