Friday, March 11, 2011

American conservative opinion writers really do hate our country

Dean Baker exposes the ignorance and hatred of America that comes out of people like Charles Krauthammer, who thinks Federal Treasury bonds are "worthless."

It is time for liberals to tell conservatives to their faces: "Why do you hate our country so much?"

We know conservative politicians in the US hate the people who work in the government, and hate most workers generally. And we know how giddy they are about the prospects of states and local communities declaring bankruptcy. Now, they gleefully tell us that US Treasury bonds are "worthless," when their own financial advisers would still tell them those are the safest investments one can make.

American conservative pundits are either stupid or cynically venal toadies of the international economic elite--or perhaps some of both.


At March 11, 2011 at 11:01:00 AM PST, Anonymous Anonymous said...

US Constitution, 14th Amendment, paragraph 4:
"The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned."

It seems their fetishist worship of the US Constitution is also a political tactic to be discarded when inconvenient.

At March 12, 2011 at 7:58:00 AM PST, Blogger Mitchell J. Freedman said...

I forgot about that paragraph of the 14th Amendment. There are also statutes that say something similar. Still, I'd be the first to defend Krauthammer's right to say what he did, but I think it more than appropriate to say what I said in response to Krauthammer.

At March 13, 2011 at 2:06:00 PM PDT, Anonymous hip703 said...

Dean Baker does not understand how bond investing works. When interest rates go up, the value of bonds to which they are pegged goes down. Because of the Federal Reserve's monetary policy, interest rates are at historic lows across the yield curve, to the detriment of savers. They really cannot go much lower. When the rates go back up, the holders of long-term 20 year t-bonds will get crushed.

Just last week, Bill Gross, who runs the largest mutual fund in the world, PIMCO Total Return, and who controls the bond market, has reduced his fund's net exposure to treasuries to ZERO. I repeat: he has, in effect, dumped all treasuries:
Is Bill Gross unpatriotic?

Warren Buffett, who is no political conservative (neither is Gross), has said recently that anyone who is investing in treasures now is foolish:
Is Buffett unpatriotic?

I am shorting t-bonds through TBT, a leveraged, inverse ETF. Am I unpatriotic?

Because the chart of the Fed's balance sheet looks like one of Al Gore's hockey sticks, I am investing in gold, gold mining stocks, and silver. Does that make me unpatriotic?

Do you really think, as you claim in your post, that treasuries are "the safest investment one can make"? What do you know that Gross and Buffett do not?

At March 13, 2011 at 8:46:00 PM PDT, Blogger Mitchell J. Freedman said...

That is short term due to a near zero percent on bonds.

Ask Gross and Buffett if they are against investing in federal notes for good. Unlike those counseling bankruptcy for government entities, that is not what Buffett is saying and I doubt even Gross believes that either.

The point remains that investing in government bonds is what you do when you don't want to risk a loss in the stock market. And Krauthammer is unpatriotic and a whack job who wants to see the government fail to promote his capitalist ideology.

At March 13, 2011 at 9:50:00 PM PDT, Anonymous hip703 said...

Krauthammer is "unpatriotic" and "wants the government to fail" because he is exposing Treasury's accounting gimmick? Heh.

Somebody like Gross, who runs the largest mutual fund in the world, does not reduce his net exposure to treasuries to zero because it's a "short-term" move. (And Buffett, who has always eschewed diversification, has never been a big investor in treasuries).

It's the Chinese that are funding our profligate federal spending. Once they decide to dump their dollars, and the dollar is no longer the international reserve currency, Treasury will no longer be able to finance our consumption through 2 year t-notes. But I guess I am unpatriotic for pointing that out.

At March 14, 2011 at 6:46:00 AM PDT, Blogger Mitchell J. Freedman said...

You have given up on your nation, Hip.

Substantively, I know that what you say about the Chinese could well come to pass. I've said it myself since the mid-1990s. However, I continue to believe we need to shore up America's economy, not through more cuts against the interests of the middle class, but with reinvestment in our infrastructure and through restoring our industrial capacity. If we do that, the Chinese won't dump their dollars and the dollar will remain the international currency.

And people like Krauthammer and maybe Gross too just want us to fail because they see themselves as apart from the rest of America. They are not bothered in the least by the growing gap among people in the elite and the rest of society. They see themselves as part of an international economic elite. That is what makes them unpatriotic.

At August 2, 2011 at 8:14:00 PM PDT, Blogger indyironmike said...

Sorry I just cannot understand why conservatives like myself are evil. I keep it simple. individuals cannot spend more than we make as someday it ends. politics aside it really boils down the same for all governments. I am from Indiana and Indiana has filed bankruptcy and there is a reason Indiana law is balanced budget. our state has issues but it cannot borrow the long run. brief short runs that have a method of repayment, well everyone has that day. We can all argue but government has to spend less or tax more. I have cut my business employees to one, me. If I am burdened more I am done trying as there is no reward. without reward I see no small business and without that, well, turn out the lights as big factory jobs and tax payers gone. the rich cannot fix the debt or us gdp. yesterday I read the cbo reports, really did not good news ahead. conservative or liberal, democrat or republic, raise taxes and cut spending, both hurt. I just want a future for my kids.


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