Another Obama Record!… US Treasuries Lower Than At Any Time During the Great Depression

Sometimes, when you elect an unskilled community organizer to the White House, these things happen.
Another Obama record – US Treasuries at 1.45pc.

US Treasuries were at 4pc. in 2008.

US Treasuries fell to 1.45pc recently, lower than at any time during the Great Depression.
The Telegraph reported:

The window of opportunity offered by US recovery is slamming shut again. America’s dire jobs data for May – and the downward revision for April – confirm the fears of cycle specialists that the US economy has slipped below stall speed. America risks tanking back into recession as the “fiscal cliff” approaches late this year, unless the Fed comes to the rescue again soon.

Brazil wilted in the first quarter. India grew at the slowest pace in nine years. China’s HSBC manufacturing index fell further into contraction in May, with new orders dropping sharply and inventories rising.

We face the grim possibility that all key engines of the global system will sputter together, this time with interest rates already near zero in the West and average public debt in the OECD club already at a record 106pc of GDP.

“The world’s largest emerging economies are no longer in a position to carry the global economy through tough times, as they did during the ‘recovery’ years of 2009-2011,” said China expert Andy Xie.

The warnings from the bond markets could hardly be clearer. German 10-year Bund yields closed at 1.17pc. The two-year notes turned negative. British Gilts closed at 1.53pc, the lowest in 300 years. US Treasuries fell to 1.45pc, lower than at any time during the Great Depression.

George Soros gave the Euro-zone governments three months to ensure the survival of the single currency in a speech on Saturday.

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  • Pingback: Another Obama Record!… US Treasuries Lower Than At Any Time During the Great Depression|PolitifreakPolitifreak()

  • Tom in CA

    Oh no. Now he will need to scramble and find a boogieman to blame. Think it will be Congress or Bush?

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  • chuck in st paul

    The big joke on Soros and his America haters is that we are the economic engine of the world. Despite China and India, if our economy goes into the tank the whole world gets poorer. QED. And yet these idiots want to drive us into penury in order to destroy our world power so that they can forward their grandiose political plans to run the world via the UN and the EU.

    Apparently they want to rule over the smoking wreckage rather than “just” be billionaires in a world where America leads by example and by influence against oligarchic dreams of power. I’m not a professional psychobabbler but I’d call that insane.

  • BurmaShave

    “George Soros gave the Euro-zone governments three months to ensure the survival of the single currency in a speech on Saturday.”

    …probably while the SOB has been doing his darnest to ensure that the Euro will fail so he can clean up on his huge short sales and use the proceeds to re-elect Obama and ruin the rest of the world.

  • democraps suck

    just another WIN for the mooslum in charge…his plan from day one was to ruin AMERICA…mooslums hate the USA and what better way to do it than to get the mooslum elected…god help us if the POS gets re-elected

  • valerie

    OT – Pajamas Media Scores!

    Lt. Gen (r) Ion Mihai Pacepa is the highest-ranking official ever to have defected from the former Soviet bloc. He is currently writing a book on disinformation together with Prof. Ronald Rychlak.

    Aside from the very relevant background this man has in dealing with communist dictatorships and recognizing the players in the United States, I want to point out a distinction he makes that might be useful in the upcoming election. It explains why merely using the word “socialist” as applied to the Obama regime is not going to penetrate with some people.

    Pacepa refers to a “Marxist dictatorship, carefully disguised as socialism.” There are people in this country that think that Socialism is an idealistic system that has never been properly implemented. For them, “socialism” is not an insult or a danger signal at all. That is because they distinguish between the idea of Socialism and the results obtained by awful governments in such miserable places as the Soviet Union, Nazi Germany, and Cuba. Some of these people see Canada and Great Britain as models for the US when it comes to paying for medical insurance.

    It’s ok to call Obama a Socialist or a Communist, because that’s what he is. But if you get a “so what?” reaction, that means you need to explain specifically why the policy you are discussing is pernicious.

  • Skandia Recluse

    Europe implodes, the middle east explodes, and the US is paralyzed. Before President Romney finishes his inauguration speech the US media is screaming ‘DO SOMETHING’ , why haven’t you fixed the problem, do something NOW, you haven’t done anything, you PROMISED.

  • Moonbat_One

    Low interest rates are a GOOD thing if you’re borrowing $.40 of every dollar you spend on government.

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  • GP Fan

    #8 June 4, 2012 at 9:22 am
    Skandia Recluse commented:

    “Before President Romney finishes his inauguration speech the US media is screaming ‘DO SOMETHING’ , why haven’t you fixed the problem, do something NOW, you haven’t done anything, you PROMISED.”

    Exactly. Even though they’ve bent over backwards and made fools of themselves, running cover for the loser in chief they’re so in love with. Love is blind. They are case in point of this phenomenon.

  • YourMaster

    I bet obama was celebrating while this info came out –
    he hates america and his liberal-communist buddies hate america and americans.

  • Patty


    The Vetting: Rabbi Arnold J. Wolf, the Socialist, anti-Israel Rabbi Who Taught Obama What He ‘Knows’ About Judaism

    Rabbi Wolf subscribed to the “blame Israel first” policy of American Progressivism, and like the future president was active with the Democratic Socialists of America.

    According to Wolf, he joined domestic terrorists Bill Ayers and Bernadine Dohrn as one of the first to host “coffees” introduce 1996 candidate for Illinois State Senate, Barack Obama, to the community:

    “I was certainly (hosting) one of the first,” said Rabbi Arnold Jacob Wolf, rabbi emeritus at Chicago’s KAM Isaiah Israel–located across the street from the Obama home.

    “There were several every week,” he recalled on Tuesday night when we spoke. “I remember what I said to him: ‘Someday you are going to be vice president of the United States.’ He laughed and said, ‘Why not president?”

    Upon the death of Rabbi Wolf in December 2008, President Elect Obama wrote:

    I am deeply saddened to learn of the passing of Rabbi Arnold Jacob Wolf, who was not just our neighbor, but a dear friend to Michelle and me. We are joined in this time of grief by the entire Hyde Park community, the American Jewish Community, and all those who shared Rabbi Wolf’s passion for learning and profound commitment to serving others. Today we bid farewell to a titan of moral strength and a champion of social justice…

  • Finncrisp

    Looks like the Chickens are coming home to roost. How ironic it took a commie lib like Barry to prime the pump. Just following the playbook to America’s oblivion. One sick dude, to be sure.

  • Patty


    BIG MISS: April Factory Orders Fall 0.6%, Ex-Cars Fall 1.1%

    ORIGINAL POST: Last economic datapoint of the day: April factory orders come out at 10:00 AM ET. Analysts expect an increase of 0.2%. That compares to a decline of 1.9% in the previous month. Given all the bad news in econ data-world these days, this one will be closely watched for confirmation or negation of the trend. UPDATE: The numbers are out and bad. Factory orders fell 0.6% in April, which is way worse than the 0.2% growth anticipated. Last month was revised to a decline of 2.1% from a decline of -1.5%. And ext-transport, the decline was a solid…

  • Patty

    Exclusive – The Vetting – Senator Barack Obama Attended Bill Ayers Barbecue, July 4, 2005

  • Patty


  • Dave in NYC

    Actually that is the yield on treasuries, not the price. Yields of 1.45% imply that Treasuries are effectively at their *highest* prices ever. It means that demand for U.S. Treasuries is extremely high as people are more risk averse. It is not a good thing overall but it is good for the U.S. government as it means our borrowing cost is extremely low.

  • valerie

    I’ll say one thing for the Repbs and the neocons:

    Their idea of a New World Order is to have others countries more competitive with the US by increasing their freedom, productivity, and prosperity. That is, by making them stronger.

    Unilaterally making the US weaker is no way to bring security and prosperity to the rest of the world.

  • mg4us

    And don’t forget to pass this on to all your friends and neighbors who like Ben & Jerry’s ice cream. .

    Ben is one of the funders of OWS

    And now wants to deface dollars

    Just say No to Ben and his Ice Cream!

  • Patty

    off topic:

    New Mosque in the Heart of Large US Jewish Neighborhood

  • Patty
  • Patty

    sorry OT

  • Patty

    Good News: World Economic Forum Ranks U.S. 46th for Manageability of Public Debt

    Every year, the World Economic Forum publishes a Financial Development Report (PDF), which — among other measures — ranks 60 of the world’s largest countries for their financial stability.

    The news for the United States is decidedly poor: due to the phenomenal (and some would say historic) levels of debt rung up by President Obama and Democrats, who have gone a record 1,100 days without passing a budget, it ranks the United States 46th of 60, behind such stalwarts as Turkey, Tunisia, Pakistan and Spain.



    Even better, the U.S. is ranked 55th for its high frequency of banking crises (fun reference quote, courtesy of Joe Biden: “The first guy we called for economic advice is Jon Corzine.”) and 51st for the “distortive effect of taxes and subsidies on competition” (additional fun reference quote from President Obama: “The true engine of economic growth [is] companies like Solyndra.”).

    The policies of this administration are literally turning the United States into a third-world country.

  • Patty


    “Shocking new documents have surfaced proving Obama’s Kenyan birth.”

  • Patty


    “Obama’s Nightmare”

  • Joe College

    Look at the screwy trading on GM stock last Friday on this 5 day chart.;range=5d;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

    If that doesn’t look like a Pump And Dump manipulation I don’t know what does. It suddenly shoots up and then plunges. It gives the big boys a chance to sell right before they tank the stock. But what else would you expect from a company run from the White House?

  • Estragon

    @ #15 Patty: Regarding the reported drop in April factory orders, you forgot to add “unexpectedly!”

    Lower rates aren’t necessarily a bad thing. When YIELDS go down, the PRICES of the bonds go up. And as noted we are spending a lot of borrowed money so it keeps our interest costs manageable for the time being.

    But how can our yields be falling when our credit rating has been downgraded and we haven’t solved our own fiscal mess? Everything in the market is relative; the dollar looks better when compared to everyone else.

    Odd that within the last couple of years some prominent news stories have promoted the idea or the euro or the yuan replacing the dollar as the world’s reserve currency. Heh, that’s a good one.

  • Do you really not understand that the yield on treasuries goes down when the price of treasuries goes up? That is, when people are BUYING them? In other words:

    (1) Folks with money expect dollar inflation to remain low.
    (2) Folks with money would rather be in treasuries than European banks or European bonds.

    Low yield on treasuries is good. This is Econ 101 stuff.

  • Dave in NYC

    If that doesn’t look like a Pump And Dump manipulation I don’t know what does. It suddenly shoots up and then plunges. It gives the big boys a chance to sell right before they tank the stock. But what else would you expect from a company run from the White House?

    Or maybe it’s because the company announced plans to significantly reduce its pension liability during the day? Stock shot up but then declined with the rest of the market…

  • NitneLiun

    You’re right, Dave in NYC. It’s astonishing how people don’t understand the simple inverse relationship between bond prices and yields. If people had bought 10-years when the coupon was 3%, they would make a killing by selling those Treasuries now.

    The problem with this data is that a massive flow of capital into Treasuries reflects a loss of confidence in future economic prospects. Of course, much of that capital is coming in from Europe and reflects the poor economic prospects in the EU and EuroZone. Unfortunately, the U.S. economy isn’t insulated from Europe and they will easily drag us down with them.

  • NitneLiun

    Adam Robert Ryan, re #29, yes and no.

    Low yields aren’t necessarily a good thing. It depends on the broader context. That’s Capital Markets 101, not Econ 101.

    Money often flows into Treasuries when economic prospects are thought to be poor. The fact that the money is flowing into 10-yr’s means that longer-term prospects are thought to be poor. While the yield can’t keep up with commodity inflation, investors now are more concerned with capital preservation (principle being returned at maturity) than capital gains, which they realize isn’t going to come from equities or other investment vehicles. Overall, this isn’t good news. Good news would be money going back into equities because earnings growth prospects are forecast to be very good. That is the opposite of what is actually happening.

  • valerie
  • Uh, Jim — when the Treasuries yield goes down, that means people trust them (and the United States) more than the competition.

  • Querstionman

    Something is wrong with you, Klansman Jim. Yes I call you Klansman Jim, because that what you and half of these racist slime, except #34 knows about Econ 101! You people are disgustingly pathetic. Anything bad that happens in this country! ANYTHING BAD! yOU KLANSMAN a-holes blame Obama!
    Join Date: Mar 2009
    Location: Philadelphia
    Posts: 2,113

    I have heard but have no confirmation that he was born in Kenya and is a Muslim who hates America! Nothing but BS created by racists who can;t stand black people in the White House!

  • mg4us

    Even Leftists are coming to the realization that Obama is a one termer

    While is is encouraging on one level that left and right agree Obama needs to go, it is scary on another level.

    Conservatives see Obama as a drunken wee-weed spender while leftists think he didn’t spend enough. . spoken like true socialists.

  • Matt

    Wait, isn’t this a good thing? Lower rates means there is a high demand for U.S. Treasuries. It means investors have faith in the United States government. It also means we pay a lower interest rate on our debt.

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  • Patty

    OMG, OMG!!

    ‘Painful Every Step Of The Way’
    EPA official admits Obama rules will kill the coal industry

    Read more:

    Have you ever!!! EPA is just discovery what a failure Obama truly is? REALLY

  • NitneLiun

    Matt, money is flowing out of equities and into Treasuries. What does that mean? It means that investors are willing to take a real (inflation-adjusted) loss on their Treasury investments because they believe that an investment in equities will result in an even greater nominal loss. Why do they believe that? They believe that because the economy is rapidly declining and the risks of earnings declines is very high.

  • Chuck

    The US will fail no matter who is at the helm. Decades of overspending and over promising will drive the US into default.

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  • Limousine Barry

    What’s wrong?

    This shows that my economic strategies are working – to bankrupt America. Ha ha!

    Let me be clear, I have almost bankrupted America but I need four more years! If you vote for me you will see higher Gas Prices, Higher Inflation, and Higher Unemployment. If my projections are correct you will see the US dollar equal to one Mexican Peso. That is economics 101! Ha ha!

    My limousine is spewing fumes and I have a meeting with Barney Frank. If we can keep gas prices high and energy explorations jobs dead then I can finally bankrupt America. I may suck but once you can’t even buy gas for the drive to work things will really suck. Good day.

  • Militant Conservative

    I bought when dumbass was elected, knew his

    Economic policies would do this. Just in time

    To hand it to a republican to fix. This is why

    Democrat policies “seem” to work. The Eff up

    The sound economic policies of the right.

    AKA Bill Clintons whole two terms, duh.

  • Bill

    I don’t think Americans have suffered enough under his first four years, so go on, you great thinkers in America give your darling Emperor another four years to really destroy everything, thats not say it’s all but gone now. It will be the same ones who elected this fraud four years ago will re-elect him once more , and if not you then he will do it by deceit and fraud. just wait till he gets re-elected you people who supported him will be the first to go or get rounded up as useless eaters, it will be a blood bath the likes you have never seen. you get what you deserve and just maybe you have not had enough yet.

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