Ten Year Real Yield Curve Hits Zero

[alice wellintown]

Like I said, where is RR when we need some voo-doo-doo economics. Cut
taxes and Fund five fucking wars. Run the deficit up to the moon ans
watch the markets fly to mars. Unemployment will be wiped out as
businesses, now stuffed with cash, invest and hire, people get money
and confidence and spend and off we go.

Sounds like Vooo-Dooo!

The answer is, we need to cut the deficit because when deficits grow
too large, say, as a percentage of GDP, even when rates are low, or
even when real rates (rate minus inflation) are low or negative, the
cost of these deficits drain money away from investment in productive
and constructive endeavors.