Ten Year Real Yield Curve Hits Zero

[Charles Albert]

Uh...not exactly.....there is something called The Paradox of Thrift.....


love,
cfa

On Sun, Sep 4, 2011 at 3:32 PM, alice wellintown
<alicewellintown at gmail.com>wrote:

> 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.
>
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