Nearly 40 years ago, Hunter S. Thompson noted in *The Great Shark Hunt* that “myths and legends die hard in America.” While he may not have specifically been referencing U.S. Treasury bonds, his observation might resonate amusingly with today’s great Treasury bond bubble.
This past Monday, the yield on the 10-Year Treasury note dipped to 1.45 percent, barely shy of the 1.39 percent yield seen in July 2012. What drives a sensible individual to invest their hard-earned money with the government for a decade in exchange for such a meager yield?
Is it the long-held belief that U.S. Treasuries are the safest, most default-free investment globally? Perhaps it’s the narrative of American exceptionalism. Or maybe it’s something else entirely.
It appears that investors in U.S. Treasuries grapple with a similar cognitive dissonance that many experience when celebrating Independence Day each July 4th. Those who revel in their freedoms—from descendants of Davy Crockett to modern-day patriots—enjoy hotdogs while clinging to their illusions of what America represents. Their fervor is noteworthy.
They firmly believe they inhabit the greatest nation ever created, enjoying unmatched freedom, opportunity, and prosperity compared to their counterparts worldwide. They trust that their government genuinely represents its citizens.
Yet, there’s an underlying sense among them that something doesn’t quite add up. They wrestle with the disparities between their beliefs and the reality, often finding themselves unable to reconcile the notion that their fundamental rights may have been compromised by their own government.
The Money-Sucking Vortex
Once, uncompromising independence, rugged individualism, and boundless personal freedom were foundational to the American identity. According to popular lore, these ideals are still revered today. However, we have our doubts.
In practice, the core values that birthed the great myths and legends of America have faded significantly. Concepts like freedom, liberty, independence, limited government, sound money, private property rights, and a humble populace have gradually slipped from our daily lives over the last century, much like the stars that vanish at dawn.
Today, Washington has morphed into a relentless money-sucking vortex. Legislators, supported by a myriad of staffers, are busy crafting new laws aimed at your wallet.
Daily updates in the Federal Register introduce a staggering array of new rules and notices—around 80,000 pages in total—shedding light on the numerous agencies, departments, and commissions that incessantly churn out regulations.
As a result of this convoluted web of rules, earning an honest living and saving money has become exceedingly challenging, with the IRS readily poised to intervene. Were your overtime hours reported correctly? Did you disclose company-sponsored parking fees as taxable benefits?
Celebrating this Land of Absurdity
This Monday marks Independence Day, and many Americans have already clocked out to enjoy the long weekend. Our aim isn’t to lament America’s plunge into absurdity.
While the truth can sting, why cling to it when the comforting embrace of myths and legends is so much more pleasant?
For one day, let us set aside our grievances about government mismanagement and the facade of leadership. Instead of complaining about unelected committees generating digital monetary credits with mere keystrokes, let us celebrate America as it is.
In essence, present-day America resembles a land of absurdity where eccentricities thrive and oddities flourish. It’s a realm where the unusual can succeed in a symbiotic chaos, where personalities like Kim Kardashian can amass wealth through outrageous behavior.
Ultimately, what must happen will unfold in its own time. It’s not our position to intervene in destiny.
Yet, all is not lost—at least not yet. We still retain the liberty to call our President a bumbling figure who wears ill-fitting jeans and throws poorly, all without fear of repercussions. That is our liberty, and we cherish it.
Cheers!
Sincerely,
MN Gordon
for Economic Prism
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