Since inflation is really running at 8-10%, it's pretty unlikely that interest rates will exceed inflation, as they would be doing if the government wasn't manipulating the rates and the currency.
We're not much better off than Japan. We get any genuine rate increases and the government is up the creek, big time. We are already borrowing money to pay the interest on the existing debt. Well, not exactly. No one is really even loaning us money, the fed is printing and "buying" most of the debt. It's like sticking a hose up your arse and expecting to live by breathing your own farts. Suicidal.
“It’s like sticking a hose up your arse and expecting to live by breathing your own farts. Suicidal.”
Well put. Perpetual motion designs always seems to fail!
Kyle Bass is predicting Japan’s collapse within 18 to 24 months. That has been a losing bet for a long time but I would never bet against Kyle.
John Williams of Shadowstats (http://www.shadowstats.com/) is predicting US hyperinflation in the relatively near future. Of course, precise timing is completely impossible to guess (and big events always take longer than anyone imagines) but high inflation is in our future. http://www.shadowstats.com/article/no-414-hyperinflation-special-report-2012.pdf You can already see it happening in the stock market - rising stock prices in an environment of poor earnings. The MSM sees this as an indication of good times ahead - instead of an early warning of impending price inflation. As Kyle Bass recently said: “Zimbabwe’s stock market was the best performer this decade - but your entire portfolio now buys you 3 eggs.”