U.S. Federal Borrowing Machine

May 26, 2009 9:48 pm

It was bound to occur. The overspending is catching up to us and now there is the threat that the rating for U.S. sovereign debt could be in jeopardy of losing its AAA status. (Although who really believes the rating agencies anymore?)

There is good news in the bad though… at least for the U.S. Federal Borrowing Machine. While North Korea’s resident lunatic is playing with matches, the world is running back to the dollar and buying up the safer U.S. treasuries as protection against megalomaniacs with a Napoleonic complex who happen to own a supply of military grade uranium.

It seems that is is the classic choice of “best of the worst”…

(TDIMG portfolios own ProShares UltraShort 20+ Year Treasury (TBT) – Up 2.80% on the day and another .60% after hours)

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