Monthly Archives: March 2010

FBI Raids Militia But the ‘Militia Mindset’ is Spreading in an Environment of Injustice

Then and Now (II/II)

Federal agents conducted raids over the weekend in Lenawee and Wastenaw counties that reports say may be related to some members of Hutaree, a Christian-militia group in Michigan…..Source: Detroit Free Press

The FBI raided a Christian Group called Hutaree in Michigan and in other states. I am not sure what ‘Hutaree’ means, but evidently it is some doctrine. They say they are preparing for end time battles or so their web site proclaims. They believe that they belong to the body of Christ and through their faith they are going to fight to the end against the Antichrist (Click for Videos). They have evidently identified the agents of the Antichrist as the Federal Government.

The group is also working for a Colonial Christian Republic. These scholars, evidently, have never heard of the separation between Church and State.

I know this area of Southwestern Michigan since I lived very close to it nearly all my life. It is an area in which a lot of poor Appalachians migrated from the mines of Kentucky and West Virgina to work in the factories of the surrounding areas. They brought with them their Charismatic Christian Religion that places faith in the Bible above any form of education or reasoning.

Although much of this area is rural, many of the people living there relied heavily on industry for their standard of living. This area, like the rest of the rust belt, has been hit very hard by economic globalization that decimated the factories and industries that used to flourish in Toledo, Ohio and in Monroe and Detroit Michigan.

The people there claim they have faith but they are evidently losing hope. Thus, many militia groups are going to flourish in these environments.

In America, unfortunately, there are a lot of screwed up crazies like the Hutaree. Their ‘faith based’ movements, as I have continually warned, will be fueled by an unjust society and economic system that takes advantage of the poor, the working and the middle classes, and nearly everyone else for the benefit of the few.

There is a dangerous under current of violence talk against various groups in our society. The anger that people feel is real and they are resorting to methods that they think will get them results. Unfortunately, the political system is a sham so there will be more groups like the Hutaree that see their only option in violence. They will cloak their anger in religion and spirituality, but deep down they are angry about their lack of power and their economic status.

Sure there needs to be the arrest of dangerous groups that will pop up. But on a deeper level, there needs to be systemic change in the way society is organized and a more equitable distribution of wealth and resources. If there is not real systemic change, then the ‘Hutaree’ mindset of violence and killing will spread further into the general populace.

Military Husband Probed for Allegedly Posting Threats on Radical Web Site

The husband of a military servicewoman living on a Tennessee Naval base is under investigation for posting threatening comments on a radical right-wing Web site, has learned.

Investigators with the Naval Criminal Investigative Service have seized the man’s shotgun and taken it to the armory at the Naval Support Activity Mid-South base in Millington, Tenn. The firearm will be will be stored there while the agency’s probe continues.

The man, writing under the name “ACA,” posted a comment last week in response to a story on the expanding role of the IRS under the new health care law. The story was posted on, which is operated by conservative talk-show host Alex Jones.

In response to comments made by a poster who questioned others’ commitment to violence against government workers, “ACA” wrote:

“THEN I WILL ( I here by threatn you with violence) if you come to my door [address removed] see if im joking! and as for you BEN what dose it look like? you living in it right now! IVAN go buy a gun and get some practice in… …”

His post generated a response by someone calling himself “Madman,” who wrote:

“Who threatened? Threats are things said, that you don’t really intend on doing, to hopefully make an advisory cower in fear. We made promises, to protect our family, and our property against armed aggressors,”before re-posting the address of the Naval base.

Both posts have been removed from the site.

Earlier this month, “ACA” posted a series of comments in which he talked about killing police officers and other law enforcers. In one, he claimed to keep an AR-15 assault rifle by his door and a loaded 12-gauge shotgun nearby, and he said he’d like to use both to kill police. The Naval base spokesman said only one weapon, the shotgun, was removed from the man’s home.

“ACA” has also praised the actions of Joseph Stack, the anti-tax Texan who last month crashed a small plane into an Austin building that houses an IRS office, killing one of their workers. “ACA” said in one online post that Stack didn’t have enough explosives on board the plane. In other posts, he implored others to target Transportation Security Administration employees. And in an even earlier post, he wrote, “T.S.A. … … … … .truly .stupid .assholes! the guy that lived next to me worked for them and i made his life a liveing hell till he moved!”

On Monday morning, NCIS agents and base security located “ACA” at the address — a privately owned on-base housing unit — that he posted in his recent comment on He admitted to posting the comment, said base spokesman David Crenshaw. The man’s name was not revealed.

“Based on the statements, the installation commanding officer requested that the resident surrender any weapons to base security for safekeeping until an investigation could be completed. The resident was cooperative and complied with the request,” Crenshaw said.

“The Naval Criminal Investigative Service and the Installation Security Team are conducting an investigation into the statements to determine if there was any criminal wrongdoing.”

This action was taken after inquired about the online comment.

Even though he is a civilian, the man is living on a military base, making him subject to the rules of that base. The commanding officer has the authority to take any weapons that are on the base — whether they belong to a member of the military or a civilian — and store them at the armory. For the same reason, NCIS has the authority to arrest him.

The man, who has not been charged, will be permitted to check his shotgun out of the armory, but he will be monitored while doing so, Crenshaw said.

NCIS and the base’s security force will continue to monitor the man as they conducts their investigation. Thus far, Crenshaw said, it appeared to investigators that the man had not violated any law.

“Threatening violence is taken very seriously but it is not necessarily an illegal act — there’s freedom of speech,” Crenshaw said, adding that investigators would step in if they sensed the man was going to take action and that his online rants were more than just blather.

Crenshaw said he did not know if “Madman,” the commenter who replied to “ACA’s” post, was being sought by investigators.

Man ordered to pay appeal costs of protesters at his son’s funeral,0,5037470.story

Lawyers for the father of a Marine who died in Iraq and whose funeral was picketed by anti-gay protesters say a court has ordered him to pay the protesters’ appeal costs.

On Friday, the 4th U.S. Circuit Court of Appeals ordered that Albert Snyder of York, Pa., pay costs associated with Fred Phelps’ appeal. Phelps is the leader of the Westboro Baptist Church of Topeka, Kan., which held a protest at the funeral of Snyder’s son, Marine Lance Cpl. Matthew Snyder, in Westminster in 2006.

Lawyers for Snyder say the Court of Appeals has ordered him to pay $16,510.80 to Phelps for costs relating to the appeal, despite the fact that the U.S. Supreme Court has agreed to review the Court of Appeals’ decision.

The lawyers say that Snyder is also struggling to come up with fees associated with filing a brief with the U.S. Supreme Court.

“We are extremely disappointed,” said Sean E. Summers, an attorney for Snyder. He added that the high court will likely hear the case during its October term and make a decision in June of next year.

“The Court of Appeals certainly could have waited until the Supreme Court made its decision,” Summers added. “There was no hardship presented by Phelps.”

Summers said there is no timetable for when the costs must be paid, but if his client doesn’t have the money when Phelps requests payment, the matter would go into collections. Snyder could lose his property or his wages, Summers said.

Snyder’s lawyer added that if Snyder pays Phelps’ court costs and then receives a favorable ruling from the Supreme Court, “imagine him trying to get money back from Phelps.”

The high court agreed earlier this month to consider whether the protesters’ message is protected by the First Amendment or limited by the competing privacy and religious rights of the mourners.


It appears that the next campaign of The Barry Sotero Crime Family will be to provide amnesty to illegal immigrants.  I am going to get ahead of the train.

These vermin are polluting our land as they cross over the border of our sovereign nation. The people of Texas, especially those along the border, are all to familiar with  these urchins.  Since the Mexican Navy helicopter crossed our border with NO response from Texas National Guard or the U.S. military,  the new rule is shoot to kill.

1. 30%, 1/3, of the prisoners in the federalpenitentiary are ILLEGAL ALIENS. That makes them criminals TWICE. It is illegal to enter this nationwithout authorization in the first place and then theycommit crimes like murder, rape, etc., you knowharmless shit. As if this were not enough, the countyjails all over the southwest are spending
millions of dollars housing ILLEGAL IMMIGRANTS at the expense of their hard working, American taxpayers and are not being reimbursed by or the wimps in Washington, D.C. The state penitentiaries are running at about 40% of inmates that are ILLEGAL IMMIGRANTS.

2. Parkland Hospital, in Dallas, Texas delivers more babies than any other hospital in this nation. PERIOD!!! Over 60%, 2/3, of the babies delivered atParkland are born to ILLEGAL IMMIGRANTS. These socalled “anchor babies” are draining the counties ability to give health care to the citizens of DallasCounty because so many of their resources are being spent on caring for people that will never pay a single dime for these deliveries and don’t belong herein the first damn place. This same scenario is
being played out in hospitals across the nation. The onlyhospital in Bisbee, Arizona has to close because ofILLEGAL IMMIGRANTS taking healthcare without
paying a single penny for it.

3. ILLEGAL IMMIGRANTS like MS-13 gang members are killing our citizens here in Texas, North Carolina,and all over the eastern seaboard. This particulargroup of thugs are from El Salvador. BLUE LATINOS. The problem is so bad that the U.S. Justice department has formed a task force to hunt down and hopefully kill
these miscreants, much as it has had to do with theMafia. MS-13 has also made threats against the U.S.Border Patrol.

4. There is a rising rate of TB in the U.S. in the border states of California, Arizona, New Mexico, and Texas because ILLEGAL IMMIGRANTS are entering
this nation without proper immunizations and are spreadingthis disease.

5. Over 42% of African AMERICANS are in direct competition with ILLEGAL IMMIGRANTS for jobs in this nation. You can thank God that the Congressional
Black Caucus is only a social club with no real power or political agenda for this. We built this nation,literally, clearing the trees and a black man laid out
the plans for our nations capitol. Not Mexicans, ElSalvadorians or any other BLUE LATINOS. Black slavesand their descendants did.

SIXX. Our school districts are going broke because there are too many ILLEGAL IMMIGRANTS entering the schools. The Palo Pinto County ISD, where I live, had planned for the districts growth based on AMERICAN children and built schools to accommodate them. However, the flood of “anchor babies” born to ILLEGAL IMMIGRANTS has
outstripped our budget and my property taxes have gone up 37% and we are having to build more schools because Mexicans in this state  are overwhelming our

I see this Mexican woman every morningwalking her 4 children to Highlands Elementary. Those are 4 children that DO NOT BELONG in our schools. To add insult to injury, she is now about 7 months PREGNANT with yet another childthat will drain our budget. That child will be born at a hospital which will absorb the cost and pass it
on to me and all but one person this is being sent to that lives in North Carolina. The child will go to schools which will absorb the cost and pass it on to ME!!! Another ESL- English as a Second Languageteacher will have to be brought in to teach this childhow to speak English, which they don’t want to speak.Then this child will more than likely be in a Mexicangang and have to be feed and housed in the TexasDepartment of Corrections for years. The cost isastronomical.

7. We are not anti-Mexican, as you asserted. We areanti-ILLEGAL IMMIGRANTS.However, I am personally beginning to become anti-Mexican. When I call an
AMERICAN company and have to “push 1 for English”, it irritates me to no end. When the ILLEGAL MEXICANIMMIGRANT ran into my daughter back in February
andhurt her it began. When he got out of his car and saidhe “speakee no english” it got worse. When the total bill of the damage to her came in at over$3,700.00, I
became anti-Mexican. Mexicans, at least in Texas,don’t carry insurance on their low riders or SUV’s.

8. I can not go to the  grocery store  on a Friday afternoon to cash a personal check. Why? Because every ILLEGAL MEXICAN IMMIGRANT in the area is there using Western Union to send money to Mexico. The line is just too long. So I go Friday mornings. The amount of money being sent to Mexico by these ILLEGAL MEXICAN IMMIGRANTS is about to surpass the amount of money that they oil fields in Mexico produce. Mexico has one of the largest oil reserves inthe WORLD and yet money sucked out of the U.S. economyis the number one or two source of revenue in Mexico?  What is wrong with this picture?  I could go on for days. Long story short. Don’t
get onAMERICAN television and tell your lies. Telemundo is available to you for your propaganda. Now, get the hell out of MY NATION!!!!

The Hutaree militia and the rising risk of far-right violence

Tuesday, March 30, 2010

The arrests of members of a Michigan-based “Christian” militia group should convince doubters that there is good reason to worry about right-wing, anti-government extremism — and potential violence — in the Age of Obama.

I put the word Christian in quotes because anyone who plots to assassinate law enforcement officers, as a federal indictment alleges members of the Hutaree militia did, is no follower of Christ. According to federal prosecutors, the Hutaree — the word’s not in my dictionary, but its Web site claims it means “Christian warrior” — are convinced that their enemies include “state and local law enforcement, who are deemed ‘foot soldiers’ of the federal government, federal law enforcement agencies and employees, participants in the ‘New World Order,’ and anyone who does not share in the Hutaree’s beliefs.”

According to the indictment, the group had been plotting for two years to assassinate federal, state or local police officers. “Possible such acts which were discussed,” the indictment says, “included killing a member of law enforcement after a traffic stop, killing a member of law enforcement and his or her family at home, ambushing a member of law enforcement in rural communities, luring a member of law enforcement with a false 911 emergency call and then killing him or her, and killing a member of law enforcement and then attacking the funeral procession motorcade” with homemade bombs.

Nine members of the Hutaree were named in the indictment. Eight were arrested during weekend FBI raids in Michigan, Ohio and Indiana; one suspect remains at large. The group’s Web site shows members in camouflage outfits traipsing through woods in “training” exercises. They could be out for an afternoon of paintball, except for the loony rhetoric about “sword and flame” and the page, labeled “Gear,” that links to several gun dealers. Along with numerous weapons offenses, the Hutaree are charged with sedition.

The episode highlights the obvious: For decades now, the most serious threat of domestic terrorism has come from the growing ranks of paranoid, anti-government hate groups that draw their inspiration, vocabulary and anger from the far right.

It is disingenuous for mainstream purveyors of incendiary far-right rhetoric to dismiss groups such as the Hutaree by saying that there are “crazies on both sides.” This simply is not true.

There was a time when the far left was a spawning ground for political violence. The first big story I covered was the San Francisco trial of heiress Patricia Hearst, who had been kidnapped and eventually co-opted by the Symbionese Liberation Army — a far-left group whose philosophy was as apocalyptic and incoherent as that of the Hutaree. There are aging radicals in Cuba today who got to Havana by hijacking airplanes in the 1970s. Left-wing radicals caused mayhem and took innocent lives.

But for the most part, far-left violence in this country has gone the way of the leisure suit and the AMC Gremlin. An anti-globalization movement, including a few window-smashing anarchists, was gaining traction at one point, but it quickly diminished after the Sept. 11, 2001, attacks. An environmental group and an animal-rights group have been linked with incidents of arson. Beyond those particulars, it is hard to identify any kind of leftist threat.

By contrast, there has been explosive growth among far-right, militia-type groups that identify themselves as white supremacists, “constitutionalists,” tax protesters and religious soldiers determined to kill people to uphold “Christian” values. Most of the groups that posed a real danger, as the Hutaree allegedly did, have been infiltrated and dismantled by authorities before they could do any damage. But we should never forget that the worst act of domestic terrorism ever committed in this country was authored by a member of the government-hating right wing: Timothy McVeigh’s bombing of the federal building in Oklahoma City.

It is dishonest for right-wing commentators to insist on an equivalence that does not exist. The danger of political violence in this country comes overwhelmingly from one direction — the right, not the left. The vitriolic, anti-government hate speech that is spewed on talk radio every day — and, quite regularly, at Tea Party rallies — is calibrated not to inform but to incite.

Demagogues scream at people that their government is illegitimate, that their country has been “taken away,” that their elected officials are “traitors” and that their freedom is at risk. They have a right to free speech, which I will always defend. But they shouldn’t be surprised if some listeners take them literally.

STEYN: A healthy dose of catastrophe

May I be boring? Or, if you’re a regular reader, more boring than usual? Bear with me. There are some eye-glazing numbers and whatnot.

In 2003, Washington blessed a grateful citizenry with the Medicare prescription drug benefit, it being generally agreed by all the experts that it was unfair to force seniors to choose between their monthly trip to Rite-Aid and Tony Danza in dinner theater. However, in order to discourage American businesses from immediately dumping all their drug plans for retirees, Congress gave them a modest tax break equivalent to 28 percent of the cost of the plan.

Fast-forward to the dawn of the Obamacare utopia. In one of a bazillion little clauses in a 2,000-page bill your legislators didn’t bother reading (because, as Rep. John Conyers explained, he wouldn’t understand it even if he did), Congress voted to subject the 28 percent tax benefit to the regular good ol’ American-as-apple-pie corporate tax rate of 35 percent. For the purposes of comparison, Sweden’s corporate tax rate is 26.3 percent, and Ireland’s is 12.5 percent. But just because America already has the highest corporate tax in the Organization for Economic Co-operation and Development is no reason why we can’t keep going until it’s double Sweden’s and quadruple Ireland’s. I refer you to the decision last year by the donut chain Tim Hortons, a Delaware corporation, to reorganize itself as a Canadian corporation “in order to take advantage of Canadian tax rates.” Hold that thought: “in order to take advantage of Canadian tax rates” – a phrase hitherto unknown to American English outside the most fantastical futuristic science fiction.

Ask yourself this: If you impose a sudden 35 percent tax on something, are you likely to get as much of it? Go on, take a wild guess. On the day President Obama signed Obamacare into law, Verizon sent an e-mail to all its employees warning that the company’s costs “will increase in the short term.” And in the medium term? Well, U.S. corporations that are able to do so will get out of their prescription drug plans and toss their retirees onto the Medicare pile. So far, just three companies – John Deere & Co., Caterpillar and Valero Energy Corp. – have calculated that the loss of the deduction will add a combined $265 million to their costs. An additional 3,500 businesses presently claim the break. The cost to taxpayers of that 28 percent benefit is about $665 per person. The cost to taxpayers of equivalent Medicare coverage is about $1,200 per person. So we’re roughly doubling the cost of covering an estimated 5 million retirees.

This single component of “health” “care” “reform” neatly encompasses all the broader trends about where we’re headed – not just in terms of increased costs and worse care, but also in the remorseless governmentalization of American life and the disincentivization of the private sector. As we see, even the very modest attempts made by Congress to constrain the 2003 prescription drug plan prove unable to prevent its expansion and metastasization. The one thing that can be said for certain is that, whatever claims are made for Obamacare, it will lead to more people depending on government for their health arrangements. Those 5 million retirees are only the advance guard. And, if you’re one of those optimistic souls whose confidence in the Congressional Budget Office (CBO) is unbounded, let’s meet up in three years’ time and see who was correct – the bureaucrats passing out the federal happy juice or the real businesses already making real business decisions about Obamacare.

Can we afford this? No. Even on the official numbers, we’re projected to add to the existing $8 trillion in debt another $12 trillion over the next decade. What could we do? Tax those big, bad corporations a bit more? Medtronic has just announced that the new Obamacare taxes on its products could force it to lay off 1,000 workers. What do those guys do? Well, they develop products such as the recently approved pacemaker that’s safe for MRI scans and the InterStim bladder-control device. So that’s 1,000 fewer people who’ll be working on new stuff. Well, so what? The public won’t miss what it never knew it had. So again, the effect is one of disincentivization – in this case, of innovation.

If existing tax structures can’t cover the costs, what can we do? Start a new tax. The VATman cometh. VAT is Euro-speak for “value-added tax.” Americans often carelessly assume it’s merely a sales tax, but in fact, it’s far more cumbersome than that, being levied at each stage at which “value” is added to a product or service. The consumer can’t claim back the VAT, but intermediate businesses in the production chain can. So self-employed individuals with relatively modest income wind up both charging VAT to their clients (25 percent in Scandinavia) and then claiming back the VAT they spent on the stamp and stationary they used to mail out the invoice. This is yet another imposition on businesses, taking time away from wealth creation and reallocating it to government paperwork. If the Democrats hold Congress this fall, I would figure on VAT sooner rather than later.

All of the above is pretty much a safe bet. What about the imponderables? Even Obama hasn’t yet asked the CBO to cost out, say, what happens to the price of oil when the Straits of Hormuz are under a de facto Iranian nuclear umbrella – as they will be soon because the former global hyperpower, which gets mad over a few hundred housing units in Jerusalem, is blase and insouciant about the wilder shores of the mullahs’ dreams. Or suppose, as seems to be happening, the Sino-Iranian alliance results in a re- orientation of global oil relationships, or the Russo-Iranian friendship blooms to such a degree that, between Moscow’s control of Europe’s gas supply and Tehran’s new role as Middle Eastern superpower, the economy of the entire developed world becomes dependent on an alliance profoundly hostile to it.

Which is to say that right now, the future lies somewhere between the certainty of decline and the probability of catastrophe. What can stop it? Not a lot. But now that your “pro-life” Democratic congressman has sold out, you might want to quit calling Washington and try your state capital. If the Commerce Clause can legitimize the “individual mandate,” there is no republic – not in any meaningful sense. If you don’t like the sound of that, maybe it’s time for a constitutional convention.


March 29, 2010

From the Associated Press:

State investigators say the husband of former state Senator Nancy Schaefer shot his wife before turning the gun on himself. The couple’s bodies were found in their north Georgia home Friday. The Georgia Bureau of Investigation conducted autopsies on the Schaefer’s Saturday—investigators say all evidence points to the deaths as a murder-suicide. The bodies of Nancy and Bruce Schaefer, 73 and 74 years old respectively, were found by their daughter at the couple’s home in Clarkesville. Nancy Schaefer was a two-term state Senator representing Georgia’s 50th district. She lost her seat in 2008. Schaefer was also a candidate for mayor of Atlanta, Georgia lieutenant governor and governor of the state.

The corporate media does not bother to mention that Schaefer exposed the abuses of CPS and the international child sex slavery ring.

Appearing on the Alex Jones Show last May, Schaefer detailed how CPS is involved in child trafficking rings (see video below). After watching Schaefer’s interview with Jones, if you think Schaefer was involved in a suicide pact with her husband, you may also be interested in a famous bridge for sale in Brooklyn.

Complete interview here–…

Lawmaker says CPS officials guilty of ‘ruthless behavior’

Georgia: State Sen. Nancy Schaefer is calling for an independent audit of her state’s Department of Family and Children Services: “I have witnessed ruthless behavior from many caseworkers, social workers, investigators, lawyers, judges, therapists and others such as those who ‘pick up’ the children. I have been stunned by what I have seen and heard from victims all over the state of Georgia.”

Midwest militia members charged in plot to kill police, attack officer’s funeral

WASHINGTON (AP) Federal authorities say nine people tied to a Christian militia were ready to wage war against the U.S.

The suspects are part of a group called Hutaree, which investigators say views law enforcement personnel as a “brotherhood” and an enemy to be attacked in a fight against the federal government. Papers unsealed in court charge group members with planning to kill police officers, and then attack a funeral in hopes of killing more.

The FBI arrested eight suspects after weekend raids in Michigan, Ohio and Indiana. Some are due in court today. One more suspect is being sought.

A U.S. attorney says agents moved on the group as it was planning on carrying out a violent mission sometime next month.

One FBI agent calls the case an example of “radical and extremist fringe groups” found throughout society, and says the bureau takes the groups seriously.

Treasuries Find Greenspan’s Canary Fainting in Mine

March 29 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan’s warning that rising yields on government debt will drive up American borrowing costs is resonating with the world’s biggest bond traders, who say this month’s losses in the market for U.S. Treasuries are just the beginning.

Higher yields are the “canary in the mine,” Greenspan said in a March 26 interview on Bloomberg Television’s “Political Capital With Al Hunt.” The increases reflect concern over “this huge overhang of federal debt which we have never seen before,” he said. The budget deficit, which hit $1.4 trillion in fiscal 2009, will drive Treasury sales to a record $2.43 trillion this year, a February survey of 10 dealers showed.

“Bonds have seen their best days,” Bill Gross, manager of the world’s biggest bond fund at Pacific Investment Management Co., said in a March 25 interview with Tom Keene on Bloomberg radio from Pimco’s headquarters in Newport Beach, California.

While Treasuries returned 0.9 percent this year, they fell after each of the government’s three note auctions last week, which drew less demand than traders estimated. Economists and strategists also predict rising yields in Germany, the U.K., Canada, Japan and the rest of world’s major economies, Bloomberg surveys show.

Snowstorms, Greece

“The rally in Treasuries is over,” said James Caron, head of U.S. interest-rate strategy at Morgan Stanley in New York. Storms in January and February, and concerns that Greece would default “slowed growth to a great degree,” he said. “Now things are normalizing and other indicators are showing the economy is getting better.”

Morgan Stanley says U.S. yields will rise to 5.5 percent by year-end, from a nine-month high of 3.92 percent on March 25. Caron’s estimate is the highest among the primary dealers obligated to bid at government auctions. Treasuries would lose about 8.8 percent should the estimate prove correct.

The 10-year Treasury yield rose 16 basis points, or 0.16 percentage point, last week to 3.85 percent, the biggest weekly increase since December. The 3.65 percent note due February 2020 fell 1 1/4, or $12.50 per $1,000 face amount, to 98 6/32, according to BGCantor Market Data.

Ten-year yields climbed to 3.88 percent today as of 11:20 a.m. in Tokyo, while the note’s price dropped to 97 30/32

Rally Fades

Treasuries surged at the start of the year, with Bank of America Merrill Lynch’s U.S. Treasury Master index gaining 1.58 percent in January, as investors sought the safety of government debt on speculation that the global recovery would falter. Those doubts diminished in February as returns slowed to 0.4 percent and disappeared this month as bonds lost 1.07 percent.

Primary dealers say the losses will worsen as the U.S. economy rebounds from the worst financial turmoil since the Great Depression. Ten of the 18 dealers say the Fed will raise its target rate for overnight loans between banks before 2011.

“We are no longer in the height of the financial crisis,” said Michael Pond, an interest-rate strategist in New York at Barclays Plc. “Many investors wouldn’t buy into the sustainability of the recovery until it came along with job creation. We’ll see that with this month’s employment report and those positive prints will continue.”

Auction Demand

The Labor Department may say April 2 that the U.S. added 190,000 jobs this month, after losing 36,000 in February, according to the median estimate of 62 economists surveyed by Bloomberg.

The global economy will expand 3.6 percent in 2010, the median of 51 estimates in a separate Bloomberg survey shows, more than the 3 percent forecast they made six months ago. JPMorgan Chase & Co. expects global growth to reach “an above- trend 3.4 percent pace” as confidence improves and labor markets recover, according to a March 18 report.

Bonds fell on March 23 after the Treasury’s $44 billion sale of two-year notes drew the weakest demand since December. The next day, five-year notes tumbled the most in seven months as the U.S. sold $42 billion at a higher yield than dealers forecast. Treasuries declined again on March 25 when the $32 billion auction of seven-year notes attracted the lowest ratio of bids received compared with those accepted in 10 months.

Goldman Bullish

Gross, who runs the $214 billion Total Return Fund, said investors should avoid the debt of the U.K. and invest in shorter-maturity U.S. and Brazilian securities and longer-term German and “core” Europe bonds.

Goldman Sachs Group Inc., the world’s most profitable securities firm, is bullish on bonds. It expects inflation will remain in check as the economy expands slower than investors anticipate. Consumer prices excluding food and energy will rise at a 1 percent annual rate over the next few months, from 1.3 percent in February, the firm predicts.

“Short-term U.S. interest rates will remain at rock- bottom levels for much longer than markets currently expect,” Jan Hatzius, Goldman’s chief U.S. economist, wrote in a report to clients on March 24.

Goldman predicts 10-year yields will drop to 3.25 percent by year-end, the lowest of any of the primary dealers. The firm forecast at the start of 2009 the yield would end that year at 3.2 percent. It finished at 3.84 percent.

Bunds, JGBs, Gilts

While consumer prices are barely rising now, Gross said inflation will accelerate as countries sell record amounts of debt to finance deficits. Pimco announced in December that it would offer stock funds for the first time.

“There will be a steady march higher in sovereign debt costs,” said William O’Donnell, U.S. government bond strategist at primary dealer Royal Bank of Scotland Group Plc, in Stamford, Connecticut. “Debt service as a percentage of government expenditures will rise. There will be pressure on disposable income because household debt costs should rise.”

Greenspan’s Buffer

America will use about 7 percent of tax revenue for debt payment in 2010 and almost 11 percent in 2013, while the U.K. is likely to spend 9 percent in 2013, rising to almost 12 percent under what Moody’s Investors Service describes as “adverse” scenarios.

Historically, there has been “a large buffer between the level of our federal debt and our capacity to borrow,” Greenspan said. “That’s narrowing. And I’m finding it very difficult to look into the future and not worry about that.”

Rates for 30-year fixed U.S. mortgages rose to 4.99 percent for the week ended March 25, the highest since the period ended Feb. 25, McLean, Virginia-based Freddie Mac said in a statement.

Corporate Spread

The extra yield investors demand to own corporate bonds rather than government debt shrank to the narrowest since November 2007 as faster economic growth has more than compensated for rising Treasury yields. Spreads have tightened to 151 basis points as of March 26, according to Bank of America Merrill Lynch’s Global Broad Market Corporate Index.

The Fed cited evidence the recovery will be slow on March 16, when it reiterated rates will stay low for an “extended” period. The central bank has kept its target rate for overnight loans between banks in a range of zero to 0.25 percent since December 2008.

“Economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period,” the Federal Open Market Committee said in its statement.

Too Cautious Fed

Primary dealers say policy makers led by Chairman Ben S. Bernanke may be too cautious. They see the Fed raising rates to 1 percent on average this year as demand increases for cash to invest in riskier securities such as stocks and corporate bonds.

“Risk appetites are rising and bonds will likely suffer,” Morgan Stanley’s Caron said.

The 0.89 percent gain in Treasuries this quarter compares with 4.56 percent for the Standard & Poor’s 500 Index, 4.64 percent for speculative grade bonds, and a 2.2 percent loss for the S&P/GSCI Index of Commodities.

“A labor market snapback will push the Fed into play,” said Carl Riccadonna, a senior economist in New York at Deutsche Bank AG. “They are moving in a less accommodative direction, but they will still be extremely accommodative. The peak in the unemployment rate came last fall. We should see sharper improvement over the next couple of months.”

Deutsche forecasts the Fed will raise rates by August and to 1.25 percent by 2011. That rate is “not even approaching restrictive,” Riccadonna said.

Following are the results of Bloomberg’s survey, conducted from March 22 to March 26. All values are for year-end:

–With assistance from Daniel Kruger and Cordell Eddings in New York. Editors: Dave Liedtka, Nate Hosoda

To contact the reporter on this story: Susanne Walker in New York at

To contact the editor responsible for this story: Dave Liedtka