Yesterday, the Bush administration announced that the Treasury would bring back the 30 year bond. This is great news for investors: 30-year bonds are safe long term way to store savings. Unfortunately for the government, though, these bonds signal an acceptance of significant budget deficits over the medium and long term.
And while the administration applies for a new credit card, Congress has approved another bloated transportation bill full of pork barrel projects. As we, and Alan Greenspan, have pointed out before, the budgetary path this administration has led us down is dangerous. President Bush’s policies have ensured we will be spending plenty of tax dollars on interest payments for many years to come.