MORE TREASURY BOND WORRIES: “I do want to point to two articles that point to a growing problem that the Obama administration has failed to address in any serious way: the exploding deficits, and the resulting need to borrow heavily. . . . Eventually the treasury has to roll that debt or pay it off, and if interest rates spike, that can prove catastrophic–just ask Argentina. The five year, seven year, and especially the thirty year auctions will tell us much more. If the longer-yield debt again registers weak demand, the administration is going to have to address this problem.”

But how can they do that? Tax increases to make up the difference are impossible — not only politically, but probably economically — and they seem sublimely uninterested in cutting spending.

Meanwhile, let’s run that graphic one more time, since I still hear Obamites blaming the problem on the cost of the Iraq war, etc.: