Treasuries Tank as Market Can't Absorb New Issue

[This is going to be a little rushed because I have to bang it out on my lunch break. Forgive typos, poor syntax and the like...]

Not to beat a dead horse, but it's like I told you: the economic stimulus thing is dead in the water because it can't be funded. It can't be funded because nobody wants to face the underlying problems of fraud, waste, and piss-poor accounting that have led us here.

Feb. 13 (Bloomberg) -- Treasuries fell, pushing yields on 10- and 30-year securities up the most in two weeks, as bond dealers sought to find buyers for the record $67 billion in notes and bonds the government sold this week.

Relative to the $700 billion Toxic Asset Ripoff Program™ (which, they are now whispering, might actually be a $2 trillion program by the time all is said and done) plus the $700+ billion economic stimulus thing, $67 billion is really not a lot of supply. It's less than a mere five percent of the money the government has promised to foist on the markets in the next year. In fact, as massive a sum as it is, $67 billion is only about 2 percent of the total debt expected to be issued by the U.S. government this year.

If the market can't absorb this "trifling" amount, it's over. The dollar is toast. It's as simple as that.

If you think things are bad now, just wait until the dollar bubble pops. After the tech bubble and the housing bubble, the dollar bubble was the only thing keeping the U.S. economy from collapsing completely. It looks like the dollar bubble is about to pop. As the Treasury markets are showing, nobody wants that junk anymore, just like they don't want a shoddily constructed McMansion.

Brace yourselves. It's about to get much worse.

I sure hope somebody besides Dick Cheney planned for this scenario...