By Nicholas BeaudrotI guess we shouldn't be surprised. After eight years of low interest rates, despite the deficit ballooning fiscal policy of George W. Bush, now that the political environment looks like it favors Democrats, bond traders are ... already gearing up to jawbone the next President to control the deficit.This is getting silly. I don't think that Wall Street is in fact out to tip elections in favor of Republicans, but between declining oil prices and suddenly aggressive bond traders it's becoming harder and harder not to believe in conspiracy theories.It's worth keeping in mind that "Security Spending" includes the occupation of Iraq, which is now about 1% of GDP. Considering the 2007 deficit was 2.5% of GDP, and hit a local peak at 5.0% of GDP in 2003, not invading Iraq would have been a nice down payment on fiscal responsibility. Maybe these bond vigilantes should ask themselves where their warnings were in 2002? 1992 ALL OVER AGAIN.
By Nicholas BeaudrotI guess we shouldn't be surprised. After eight years of low interest rates, despite the deficit ballooning fiscal policy of George W. Bush, now that the political environment looks like it favors Democrats, bond traders are ... already gearing up to jawbone the next President to control the deficit.This is getting silly. I don't think that Wall Street is in fact out to tip elections in favor of Republicans, but between declining oil prices and suddenly aggressive bond traders it's becoming harder and harder not to believe in conspiracy theories.It's worth keeping in mind that "Security Spending" includes the occupation of Iraq, which is now about 1% of GDP. Considering the 2007 deficit was 2.5% of GDP, and hit a local peak at 5.0% of GDP in 2003, not invading Iraq would have been a nice down payment on fiscal responsibility. Maybe these bond vigilantes should ask themselves where their warnings were in 2002? 
