STANDARD & POOR’S TREASURY DOWNGRADE: The rating agencies are always the last to know. “As in the case of Enron, the smart money gets gone long before credit downgrades start hitting the headlines. As noted in this column, PIMCO, the world’s largest bond fund, got clear of U.S. Treasuries some time ago, following the lead of a number of hedge funds. The oil-exporting countries are dumping U.S. debt, too. Perhaps they know something we don’t?”

UPDATE: Inflation-adjusted federal spending per capita. “A hundred years ago, federal spending for each person was the equivalent of $200 in today’s dollars. After FDR, with all of his massive public spending, it was $1,000. This year, it’s over $12,000. How long can this continue?” Not much longer. And if something can’t go on forever, it won’t.