I WARNED YOU.

Never mind that partisan wrangling about the debt ceiling.

The crisis has not been averted, it has only been deferred.

What is the real debt ceiling?  The value of the federal debt beyond which bond traders will not buy Treasuries.

When will the day of default be?  Nobody knows the day or the hour.

The hour might not yet have come, but ominous signs appear.  "Demand for 30-Year Treasurys Proves Weak, Sending Yields Surging."  That's how it begins.  "The National Debt continues to accumulate, and one of these days the bond traders will only hold Treasuries at deep discounts."

One of the conditions for being a major bank is having to hold the Treasuries elective buyers elect not to buy.

The 30-year U.S. Treasury yield climbed above 4.8% on Thursday, from 4.655% the prior day, after a sale of $24 billion in bonds received far less demand from investors than the government is used to.

Primary dealers, big banks who are obligated to finance whatever portion of a Treasury auction isn't purchased by other investors, bought nearly a quarter of the issuance—more than double their average in recent 30-year auctions, according to BMO Capital Markets.

Waning demand for long-term Treasurys rattled the stock and bond markets in recent months before the Treasury Department offered a dose of relief with less-aggressive borrowing plans than many expected.

Today's auction could revive worries that buyers of U.S. debt will now require higher interest rates to step up.

Now try financing a new house or a new car, and look for credit card limits to be truncated because Our Political Masters pretend that capping credit card interest rates lowers borrowing costs.

SECOND SECTION:  Steven Hayward, "The Debt Bomb Starting to Go Off?"