What Did You Buy Today?

[Otter]

(03-18-2020, 12:06 PM)fenders53 Wrote: I hope Powell has the guts to ease the rates backup when appropriate.  Hard to do your job when your boss is threatening to fire you publically.  The relationship is very distorted from how it's supposed to work.

I suspect that the U.S. will be in a lower rate environment for a very long time. Debt is unsustainable at historically normal rates, unless and until massive growth and corresponding (manageable) levels of inflation bring the debt burden down in real dollar terms. The Fed will just create money to buy bonds to cancel debt and maintain rates as needed. 

https://www.forbes.com/sites/nathanlewis/2019/02/21/the-problem-with-modern-monetary-theory-is-that-its-true