Treasuries, Steinbrenner, Pelosi And Ceding Arizona
July 30, 2010 by Chip Wood
*What “flight to safety?” Investors around the globe snatched up every single note the United States Treasury offered in its last auction—at record low interest rates. Thirty-eight billion dollars in two-year notes were auctioned at a yield of 0.665 percent. That’s less than 70 cents for every $100 you loan ‘em, folks. And that’s for an entire year. When inflation is taken into account, those nervous Nellies are earning a negative 0.57 percent a year. Plus, they’re guaranteed that the dollars they do receive in two years will be worth less than they are today. That’s safety?
*George Steinbrenner saves his family a bundle. One of baseball’s most colorful characters passed away two weeks ago. You’ve heard a lot of stories about Yankee owner George Steinbrenner. But did you know that by dying this year—and not in 2009 or 2011—George saved his family about $335 million in death taxes? I suspect he’d enjoy a good chuckle over that.
*Nancy Pelosi gives aid and comfort to our enemies. Pity Colombia. It’s trying to do everything right—fighting its communist terrorists, the FARC, to a standstill; promoting freedom and free enterprise at home; and working hard to be a friend to the United States. So why does the Speaker of the House block approval of a Colombia-U.S. free trade agreement? And even more despicable, why does she welcome FARC’s most notorious ally in Colombia’s Senate to her congressional chambers? My guess is it’s because Madame Speaker likes our enemies better than our friends. What’s yours?
*Obama cedes a chunk of Arizona. This is amazing. While President Obama claims that only the Federal government can be allowed to “solve” the immigration crisis in Arizona, his government has ceded control of more than 3,500 acres of the state to drug smugglers and other criminals. In fact, the U.S. Fish and Wildlife Service has posted signs reading, “Danger—Public Warning. Travel Not Recommended” at the entrances to the Buenos Aires National Wildlife Refuge. “Good air” indeed; what we’re getting instead is a lot of bad baloney.