[sickoflibs]

RE :” The Fed pledges to keep short-term rates near zero. But as John C. Michaelson of Imperium Partners Group of New York City detailed recently in an excellent Wall Street Journal op-ed, the Fed's strategy has “pernicious consequences,” as recent history proves. Low rates depress investment returns, so companies must divert money for operating expenses to meet their pension obligations; that leads to job losses and pay cuts that reduce consumer spending. Governments that increase payments to their pension funds to make up for lost investment income exacerbate their budget crises; those that carry these losses as unfunded liabilities worsen future crises.

Banks are discouraged from lending to job-producing companies because they can invest their near-zero-interest loans in zero-risk government bonds. Low rates also failed to produce the promised spike in consumer spending because shell-shocked Americans are deathly afraid the recession may deepen and the government's response will make things even worse. This same fear and loathing has companies, even those making record profits, sitting on their cash reserves, now estimated at nearly $2 trillion. “

Sounds like Peter Schiff

Super Low interest rates boost the stock market and some sales like home and cars but has long term consequences that are bad, as well as those above.

Why the F#$%%$ does the federal government pay more interest on bonds than the federal reserve is charging for the money?? Is it long term vs short term?

[Toddsterpatriot]

Why the F#$%%$ does the federal government pay more interest on bonds than the federal reserve is charging for the money??

They don't, until you get to 3 year and longer Treasuries.

[ding_dong_daddy_from_dumas]

Does it seem to you that Republicans and Dems are both hoping that the other party will be in power when interest rates go up?