Monday, December 5, 2016

Real Interest rates are falling despite the Feds nominal increases


If we are going to have larger deficits its impossible to finance them, unless the Federal Reserve does it. So we are going to have to do even more quantitative easing (QE). The Fed is going to have to reverse and cut interest rates, and it's not going to create economic growth, but it is going to put pressure on inflation that is already now above what the Fed supposedly says is its supposed target.

He [Trump] doesn't want to tackle, for political reasons, the real problems that are underlying the economy. 



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