Let The Bonds Begin!

Uncle Sam wants your money, and in exchange he'll hand you a nice IOU. The problem is that there are an awful lot of IOU's out there that he is supposed to honor, and some are questioning his viability. If you are in the market for a house, then maybe you've noticed a sharp uptick in the mortgage rates, that's directly tied to the current issues that the Treasury Department is experiencing with issuing record numbers of bonds.

I can only hope that things don't continue to crumble, but I fear that if we continue on this current path the Fed will need to print, purchase, and thus monetize our debt in amounts only seen by post World War 1 Germany.

http://www.latimes.com/business/la-fi-petruno6-2009jun06,0,3556163.column