Only months after it was first noted – but, hey, its the MSM…

… the biggest factor driving cash into longer-term bonds is the feeling that there is no inflation threat to fixed-income securities, Tucci and Di Galoma said.

In fact, sentiment is shifting more toward the idea that the U.S. could face outright deflation, Tucci said.

Figure it this way: If inflation is 2% and a bond pays 3% interest, the “real” or after-inflation yield is just 1%.

But say inflation turns to deflation, and the U.S. sees broad-based declines in prices of goods and services, similar to Japan’s experience.

At a deflation rate of 2%, the real return on a 3% bond would be 5% — a huge number, by bond standards.

The deflationistas are still a minority camp on Wall Street. But their numbers will grow if the economic data get weaker instead of stronger.

I started talking this up in August, while Mish’s has been on it for quite a long time. As an aside, Mish’s has an excellent – and worrisome – look at the steel trade. Seems that the Chinese are low-balling everyone, and we’re still not buying: imports down around 55% from a year ago.

Its a Depression, boys and girls: get used to it. When will we get out of it? When we start making, mining and growing our own stuff. Oh, and balance the budget – without raising taxes.

The long battle begins:

The seesaw 2010 Senate race in Pennsylvania tips to Republican Pat Toomey, who has 43 percent to recently converted Democrat Sen. Arlen Specter’s 42 percent, too close to call, according to a Quinnipiac University poll released today. This reverses a 45 – 44 percent tip to Sen. Specter July 22 and wipes out a 20-point Specter lead May 4, in the flush of Specter’s switch from Republican to Democrat to escape a primary battle with Toomey.

President Barack Obama’s job approval rating in the Keystone State has dropped to a new low, 49 – 42 percent, the first time he has been under 50 percent in the state, the independent Quinnipiac (KWIN-uh-pe-ack) University poll finds.

The good news for Sen. Specter, who was first elected to the Senate as a Republican in 1980, is that he remains far ahead of his Democratic primary challenger, U.S. Rep. Joe Sestak from southeastern Pennsylvania, 44 – 25 percent.

I think that Sestak might become more appealing to PA Democrats – certainly, if I were a PA Democrat, I’d be furious about the powers-that-be saddling me with a worn out, retread reject from another party. Be that as it may, the fact that Toomey is doing so well in this trial heat shows how precarious the Democrats’ hold on power has become.

Its still a near impossibility for the GOP to score a majority in the Senate, but we can certainly whittle down the Democrats majority by 5 or 6, if we fight hard.

That is how much federal debt we wracked up in FY 2009. Now, Obama isn’t fully responsible for this as he only took over in Q2, FY2009…but he’s 3/4ths responsible…and from now on, its all him.

Um, you liberals will remember to hammer him relentlessly if he doesn’t balance the budget, right? We on the right don’t want to think your attacks on Bush were just dishonest opportunism…

Regarding Iran:

President Obama appeared in the Diplomatic Reception Room of the White House Thursday afternoon to demand that leaders of the Islamic Republic of Iran take concrete actions to defuse international tensions regarding its nuclear program, beginning with allowing the International Atomic Energy Agency “full access” to Iran’s nuclear facility at Qom within the next two weeks.

IAEA Director General Mohamed ElBaradei, with whom the president has been in close contact, will be arriving in Tehran in the next few days, the president said.

“Our patience is not unlimited,” the president said, alluding to tougher economic sanctions if Iran does not take the necessary steps. “The United States will not continue to negotiate indefinitely, and we are prepared to move towards increased pressure.”

What’ll he do? Threaten to threaten again? Now, there is a story that Iran will send a large amount of its uranium to Russia for final processing as fuel-grade material. This is considered good news – how so, I can’t imagine. Iran doesn’t need a civil nuclear program – in fact, Iran is largely bankrupting itself with its nuclear program. Send that stuff to Russia for final processing as fuel-grade and all your doing is saving the Iranians some trouble – once back in Iran, it can then be further processed to weapons-grade. And this, of course, would presume that Iran would do it – and that Russia would tell us the truth if Iran didn’t perform. We’ll also have no way of telling, if Iran performs, that this is all the material they have.

The problem with negotiating with Iran is that there’s no real teeth behind it. Alluding to possible pressure at some future point if Iran doesn’t come through is utterly foolish – and Obama’s statement is just the mindless statement of someone who thinks that negotiating is an end, rather than a means. For liberals, as long as you’re talking, everything is going swell. Well, it will be for the Iranian mullahs – as long as we’re talking with no threat of force around, they can continue on their merry, nuclear way.

The only way to get Iran to the table – really to the table and willing to give up the nukes – is to make it clear to Iran that failure to comply means force will be used, in whatever measure proves necessary. Iran can bluster about fighting, but even the most kooky of Iranian mullahs know they can’t actually stop us – they can’t stop us from bombing the facilities, blockading the ports, blowing up Iran’s sole gasoline refinery. They can shoot back a bit, but that would only give us the excuse to entirely wreck Iran’s military power. Put the threat of force on the table, and the Iranians will back down – in addition, this will encourage the Iranian people in their simmering revolt; there is nothing better for oppressed people than to feel that the United States is on their side against their oppressors.

But, Obama will talk and talk and talk and the issue will just stumble along…until Iran has nukes, or Israel just decides to take care of the issue, with incalculable results for the world. The Giant is bound hand and foot – and Obama is the man tying him down.

Geesh – what woodwork did these people crawl out of?

A law professor nominated by President Obama to become a commissioner for the Equal Employment Opportunity Commission was a signatory to a radical 2006 manifesto which endorsed polygamous households and argued traditional marriage should not be privileged “above all others.”

Georgetown University Law Center professor Chai R. Feldblum, nominated as a commissioner for the Equal Employment Opportunity Commission (EEOC), is listed as a signatory to the July 26, 2006 manifesto “Beyond Same-Sex Marriage: A New Strategic Vision for All Our Families & Relationships.”

The manifesto’s signatories said they proposed a “new vision” for governmental and private recognition of “diverse kinds” of partnerships, households and families. They said they hoped to “move beyond the narrow confines of marriage politics” in the U.S.

Describing various kinds of households as no less socially, economically, and spiritually worthy than other relationships, the Beyond Marriage manifesto listed “committed, loving households in which there is more than one conjugal partner.”

Its ok to be a kook, but why does Obama keep appointing kooks to positions in his government? Does no one around Obama realize that polygamy is not a core, American value? Did he ever discuss this issue with Mrs. Obama and find how she’d feel about being one of many wives? When he used to chat with his late Grandmother, did Obama never get a sense of what is normal and acceptable?

Or is he just out to lunch and second-tier kooks are just running hog wild?

From CNBC:

Weekly Jobless Claims Gain, But Planned Layoffs Fall

And if that doesn’t keep you on Obama’s good side, then nothing will.

The actual story is how unemployment is getting worse, but as you read the linked article its all about how things aren’t getting worse as fast as before, and thus things are getting better. I really expect to start seeing things like “plus-good” to describe the events of the day…

Yep, things are getting better all over:

The Federal Deposit Insurance Corp.’s plan to rebuild its reserves may cost Bank of America Corp. and three of the largest U.S. banks more than $10 billion.

Bank of America, the biggest U.S. lender by deposits, may owe $3.5 billion under an FDIC proposal that banks prepay three years of premiums, based on the lowest assessment rate multiplied by the bank’s $900 billion in June 30 U.S. deposits.

“This seems like a very hefty amount,” said Tim Yeager, a finance professor at the University of Arkansas and former economist at the Federal Reserve Bank of St. Louis. “The FDIC’s projections of future losses are pretty severe, and they are trying everything they can to avoid tapping the Treasury.”

Two cheers for FDIC for getting the banks to pay rather than dipping in to the taxpayer’s pocket – but the bad news remains: the FDIC is functionally bankrupt at the moment. So many banks have failed in 2009 that the FDIC has simply run out of money to secure the deposits (it probably hasn’t helped that Uncle Sam raised the insured amount to $250,000.00 per deposit). And here’s the worst news: there’s no let up in the bank failures.

Meanwhile, in other news:

More companies in the Chicago area reported business worsened in September, according to the Chicago-NAPM. The Chicago purchasing managers index fell to 46.1% in September from 50.0% in August, the trade group said. Economists were expecting an increase to 52%. The new orders index backtracked to 46.3% from 52.5% in August. The employment index was essentially unchanged at 38.8%. Readings under 50% indicate more firms said business was worsening than said it was improving.

Getty all warm and fuzzy over this? I mean, this has just gotta be part of the Obama plan, right? Biden says its working better than anyone expected, ya know? The really bad news: it was just this sort of news which caused the 2002 stock sell off.

HAT TIP: Mish’s

UPDATE: Stocks slide on economic worries. Talk about perfect timing.

Add another to the list of endangered Democrats:

…Arkansas’ Blanche Lambert Lincoln trails all four of her leading Republican challengers in the first Rasmussen Reports Election 2010 survey in the state.

Lincoln fails to get 50% of the vote in any of the match-ups, and any incumbent who falls short of that level is considered vulnerable…

Its polls like these which will make it very hard for Obama, Pelosi and Reid to push through much more of the leftist agenda. Dear Ms. Blanche just can’t afford to vote Obama at this point in time – it’ll cook her goose back home.

You know, I have been physically assaulted for supporting President Bush.

I have witnessed firsthand anti-Bush protests where left-wing wackos hung effigies of Bush, held signs calling for his assassination, calling Bush a Nazi, etc. etc.

So, when I read idiotic columns like this, by New York Times columnist Thomas Friedman, I have to take issue with it. He wrote,

I have no problem with any of the substantive criticism of President Obama from the right or left. But something very dangerous is happening. Criticism from the far right has begun tipping over into delegitimation and creating the same kind of climate here that existed in Israel on the eve of the Rabin assassination.

Please. The criticisms of Obama haven’t even come close the vitriol that came from the left-wing nutters who protested Bush like it wast their full time job. Not. Even. Close.

Air America aired skits threaten Bush with assassination. Air America host Randi Rhodes had joked about assassinating Bush. The left was pretty much silent… no outrage at all.

There are plenty of examples of “assassination chic” that seemed to be acceptable to the left back in the Bush years. Yet, today they are making up ridiculous claims that today the political right are creating a climate that hints at a desire for Obama’s assassination? Stupid.

So, why is the left pretending that people who don’t want government run health care are just a bunch of racists who want Obama assassinated?

So, let’s get back to reality here. The left’s attempts to de-legitimize their opposition isn’t going to work.

Go negative – very, very negative:

With 34 days to go in New Jersey, Christie’s lead over incumbent Democrat Jon Corzine has been cut from 10 points to four, according to a new survey from the Quinnipiac University Polling Institute.

Christie now leads Corzine by just 43-39 percent, with 12 percent of the vote going to Independent candidate Chris Daggett.

On September 1, Christie led Corzine and Daggett by 47-37-7 percent.

What accounts for the halving of Christie’s lead?

Simply put, the pounding he’s taken at the hands of Corzine’s unmatched millions of dollars in negative advertising.

Corzine’s numbers have barely moved — from a favorable/unfavorable rating of 35 percent favorable, 53 percent unfavorable on June 10, he’s moved to 34 percent favorable, 56 percent unfavorable.

But Christie’s favorable/unfavorable rating has now moved to 38 percent favorable, 38 percent unfavorable. That represents a 20-point shift to the negative from June 10, when Christie’s favorable/unfavorable rating was at 36/16 percent.

In other words, since the week he won the primary election, Christie has moved his positives two points, from 36 to 38 percent, while Corzine has moved Christie’s negatives by 22 points, from 16 to 38 percent.

This is an almost exact duplicate of what Democrats did in California back in 2002. Back then, they had a horrendously unpopular governor (Gray Davis) and so what they did was poison the well so much that their man managed to squeek to a win. Helping the Democrats along is a strong, third party candidate who may siphon enough votes away from the GOP to allow Corzine to win with 40% of the vote (he’s a Democrat – that he’s been a miserable failure doesn’t matter, as long as there’s a “D” after his name, he’ll get that many votes in New Jersey). It is also, by the way, what I expect out here in Nevada next year – Reid is building up a $25 million war chest and will use it to smear whomever the GOP nominates.

Now, how does Christie turn this around? As noted later in the linked article – go after New Jersey’s horrific property tax rates. Why? Because it’s popular – the people are overburdened and want relief. But, more important than that, it puts Christie on the outside. In New Jersey, there is always talk of tax relief – but never any action. The people of New Jersey are used to this – they hate it, but its just expected that whomever is elected will break whatever tax promises made (as Corzine has done on the very issue of property taxes). But, still, if its clear and bold and hammered home relentlessly, Christie can put himself outside the New Jersey establishment, and surge to victory in November.

The whole of politics right now is “people vs powerful” – the outside is ticked off at the inside. If you can be outside the establishment, you can win – the establishment has no way to beat you, because you won’t be playing their game on their field. Christie can play it safe, hope his lead holds for the next month…and then get beaten, or he can understand that the old, dead ways of politics must be discarded.

We’ll see how he does. Meanwhile, are you a New Jersey GOPer? Then get out and help.