Besides "Taco Bell says false advertising lawsuit has no meat",  the headline of the day was.....

Obama to propose spending freeze but can't avoid fight

WASHINGTON, Jan 25 (Reuters) - President Barack Obama will propose a spending freeze to show his determination to join Republicans in tackling the deficit, but it likely will not be enough to avoid a bitter fight over budget cuts.

Obama's address to Congress at 9 p.m. EST (0200 GMT on Wednesday) will stress a search for common ground on efforts to boost growth and jobs, shaping a centrist message to carry into his 2012 reelection campaign.

Just hours before the speech, the White House said Obama will reiterate a call for a five-year halt on non-security, discretionary spending increases. A freeze on that type of spending would not apply to the huge entitlement programs -- such as Social Security and Medicare -- at the heart of America's deficit problem.

In fact, discretionary spending, excluding money for security, accounts for just 13 percent of the $3.7 trillion federal budget.

Obama is widely expected to use his lengthy address to highlight his shift to the political center and to begin the process of winning back disgruntled independent voters who will be central to his chances of re-election in 2012.


 Budget Deficits. Entitlements. Slow Growth. Tough Choices. Spending Freezes........Civil Unrest!

Sounds a lot like Europe doesn't it?

I wasn't describing the European Union though. I was talking about the United States of America.

It was only a matter of time before this issue made its way to the front page. The Republican party forced it onto the mainstream agenda on November 2, 2010. Rightfully so but is now the time to be attracting negative attention to our budget deficit?

Sure. If you think Main Street is ready to forgive Wall Street. If you think Main Street is ready to face "tough choices". If you think the United States as a country is capable of KNOWINGLY socializing economic losses a team....then sure. If you think Americans are down to make MORE sacrifices. They yep! Now is the time to be FOCUSING on the budget deficit instead of ways to create jobs and stable growth in this country. I'd be willing to bet we'll hear more than just a few outcries calling for the big banks to front the tab though......

The last thing we want to do is put the U.S. credit rating in the global spotlight. We don't want bond vigilantes chasing after our debt like they are EU debt right now.   A "bitter fight over budget cuts"  unfortunately  would do just that.   I hope our so called leaders in Washington avoid that bitter fight. I hope they act like adults and avoid grand standing and pandering. We don't need bickering.  We need common ground.  We need to develop a plan and make some moves to restore confidence in our country.

Step 1 Tonight:  This rhetoric will better align President Obama's growth initiatives with the fiscal concerns of the Republican party, but he better be very very careful. Republicans want the White House back, so President Obama will have to give credit where credit is due. Otherwise the Republican party will discredit the initiative as a political ploy intended to maintain power. And then bickering follows.

One more look at the ranges we're dealing with.....

FNCL 4.5s

UST10YR Note....


If you answered no. You should be nervous about bond vigilantes.