Dispatches from the Creation Wars

Rep. Brad Sherman (D-CA) said on the House floor that members of the House were told in private that if they didn’t vote for the bailout bill, martial law would have to be imposed. Video below the fold:

Now I’m not one of those people who thinks we’re on the verge of a dictatorship. I don’t think Bush is going to suspend the election and impose martial law (and I have a bet with at least one of my readers on that, though I forget which one now). And if any of you would care to wager on that, I’d be happy to. But even if this threat was being thrown around casually, that speaks to the massive propaganda campaign going on about this bailout.

I have one question I’ve not seen answered so far. If the credit markets really are “seized up” as so many claim, why aren’t interest rates going up? Interest rates are the cost of credit, the cost of borrowing money. If the supply of credit is drying up, interest rates should be skyrocketing. And they’re not.

Okay, I have a second question. Since the financing of this $700 billion will almost certainly come from issuing more debt in the form of treasury bills, how does that help with credit liquidity? It should do the opposite because that’s $700 billion less money available to others besides the government in the credit markets.