The Obama administration's fiscal incontinence has awakened the "bond vigilantes," investors around the world who are driving up the yields on ten-year Treasuries.(The Week)(Barack Obama)(Brief article)

The Obama administration's fiscal incontinence has awakened the "bond vigilantes," investors around the world who are driving up the yields on ten-year Treasuries. They are doing this because they calculate, not without reason, that the current spending spree will aggravate inflation, enfeeble the dollar, and diminish the U.S. government's creditworthiness. The term "bond vigilante" was coined by economist Ed Yardeni, who wrote, "If the fiscal and monetary authorities won't regulate the economy, the bond investor will. The economy will be run by vigilantes in the credit markets." Bonds normally rally during recessions, but the ...