All countries have central banks, and interest rates the world over are set through central planning.
http://www.federalreserve.gov/boarddocs/press/monetary/2007/20070628/default.htm
http://en.wikipedia.org/wiki/Federal_funds_rate
If you think the market is setting rates, do you also think that inflation is in the 2-3% range (which would imply long rates in the 5% range is OK). The 2 concepts are inconsistent.
Really? What did the Fed set the 30 year mortgage at this week? Any chance you'll share that rate sheet with the rest of us?
If you think the market is setting rates, do you also think that inflation is in the 2-3% range
Yes.
Hmmmm.....You'd think centrally set rates would be a lot smoother. You know, rates shall be 5% would show zero movement up and down, until the next rate setting announcement.