A victory for President Barack Obama hurt all of us by thousands of dollars.
Consider what just a hint of deficit reduction with a possible deal between Rep. Paul Ryan, Republican, and Sen. Patty Murray, a Democrat, that could cut the deficit by about $100 billion annually. Ten-year treasury note yields fell to their lowest point in about two months. Thirty-year mortgage rates fell to about 4.35 percent fixed, the dollar rose.
Just as I pointed out in an Oct. 1 letter.
Default was never on the table. This was a scare tactic by Obama, amplified by his media allies, and some GOP politicians who like to spend. We have $235 billion a month coming in, debt cost is 11 percent of that. Big deal. It's unconstitutional to do so too.
If you impose the debt ceiling:
* Mortgage rates will plummet, with 30-year falling below 3 percent.
* The dollar will rise, reaching parity with the euro.
As a result:
* Gasoline prices will fall by $1.25 a gallon.
* Food prices will drop 10 to 20 percent.
* Good deflation will drop mortgage and loan rates even more.
* The Fed cannot do quantitative easing anymore.
* You can cut taxes without a deficit and get more growth.
Is spending per person at the same rate Bill Clinton did horrible? Are 93 percent of Environmental Protection Agency workers deemed nonessential two weeks ago suddenly essential?
After seven years of Democrat economics giving us a depression, it is time to change course.