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To: blam

For a while now (since at least 2008), the primary objective of Fed policy has been to keep the deficit “managable”. It is doing this by keeping interest rates near zero as to minimize interest payments on the deficit. There are a lot of consequences to this, including the hoarding of $$ by corporations and banks. In addition, it is a huge (stealth) tax on savers.

If the 10Y treasury every goes above 5%, its game over.


4 posted on 02/01/2012 6:18:30 AM PST by rbg81
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To: rbg81

Absolutely.


20 posted on 02/01/2012 6:36:33 AM PST by TheWriterTX (All in now for Newt Gingrich)
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To: rbg81

keeping interest rates near zero as to minimize interest payments on the deficit

Neither the debt nor the deficit are getting any smaller.


24 posted on 02/01/2012 6:42:00 AM PST by wita
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To: rbg81
Worth repeating:

If the 10Y treasury ever goes above 5%, it's game over

39 posted on 02/01/2012 6:56:25 AM PST by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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