Jimmy chen here,
so if rates go up not so good for my gold /silver in my humble noodle man opinion but if dhey do, I will allocate some capital to interest producing short term stuff, and use de resulting interest to buy a new tramporine as de old one is getting a bit soft in de middle rike wife number 4. you see wit 6 wives and 7 days in de week, dhere is a day when dhey complete for rove room time and so every sunday morning before church, all de wives have 2 minutes each to jump on our backyard tramporine, de one who impress me most get to spend night in de rove room wit jimmy. oh it such good time, but usually make sunday acrimonious day amongst de women…. dhey all so possessive.
The reason why rates are so low, especially in the U.S. is that they would otherwise have fallen into the negative, were it not for huge support from the treasury, and pumping of the money markets everywhere else.
For example, policy rates of 1% in Canada means Canada is throwing billions daily at the money markets to prop things up. Same with Euro sector money markets.
How much are we talking? The short term money market is $13 trillion in the U.S. ON A DAILY BASIS. Do you get the extent now?
Any swaps and repos that fail as a result of failures to deliver are being bailed out the world over, and it isn’t even mentioned on the press because people are navel gazing over the mortgage mess. The more clueless are ranting about inflation, and the public are cozy with ‘recovery.’ The fraud here is beyond compare.
Look at rates on the 5-year TIPS, they’re negative:
an agreeable proposal, but “somethin’ tells me” that settin’ the rate ain’t up to Bernanke, (or Geithner, or even Obama)
it’s “in the cards”, “just one of those things that happens”, …
Its like nobody sees how negative interest rates are implied in the markets, OR we will see negative interest rates soon enough. Even James Grant doesn’t have a handle on it!!
Poor Josh. He thinks the Fed actually cares about the economy and jobs.
Typical conservative nit wit.
Figures he has it all figured when in fact he has nothing figured NOTHING.
But you got to hand it to them, they are loud.
he misses a big glaring hole in his plan ,
debt repayments go up 4X if they raise from 0.25% to 1%
as i hear paying the debt off is imposssible, rasing rates now just speeds up the race to default,
usa needs more time for space aliens; that shit gold bars, to arrive and solve all their problems
Wake me up when rates are 8%
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