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Paul: I read this and, while not understanding
it completely, was reminded somewhat of the north carolina deal.
There is no way the US will raise interest rates whilst the economy is in the toilet. Low interest rates drive more and more cash from their own citizens into treasuries. As Japan has shown, you can do this for over a decade and still kick the can further and further down the road.
Amen. Nobody will stop war, Nobody will provide sound money, and Nobody will provide stable law. Nobody also will fix infrastructure, voucherize education, and fund research and exploration. Furthermore, Nobody will save the safety net.
VOTE NOBODY FOR PRESIDENT, AND ELECT NOBODY TO CONGRESS AS WELL.
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-Willa Sibert Cather~ I like trees because they seem more resigned to the way they have to live than other things do.
Brad Maaske, a real estate guy / radio show personality in Fresno, California, has proposed that mortgages on overpriced properties owned by Fannie, Freddie, FHA, VA, and USDA be reset to a 1% interest rate for the first $100,000, 2% on the second 100,000 and 3% on any principal above that, while keeping the principal the same, rather than execute foreclosures. The loans would not be assumable except by immediate family members. This would stabilize a lot of government owned loans and free up a lot of money to homeowners. Of course he estimated that the gov't would get about $140 billion a year less. But then that's not a bad thing...
Excellent article, this is by far my favourite conservative mag.
Amazing article, Ms. Gelinas. Particularly your concluding sentences. Thanks for making some of the unintelligible sensible.
If interest rates rise, the amount of interest the federal government pays for its debt also rises. It would then be in a bind - raise taxes, and makes conditions worse, or keep interest rates low, and continue to borrow.
Obviously, now that the "debt crisis" is 'over' the government has decided to keep interest rates low - so it is now in a bind that year by year strangles growth. In the meantime, it can't say word one about China's insistence on keeping its currency low, which allows China to be the most competitive nation in the world when it comes to exports. So, since the economy can't grow, and those in charge have zero courage or character, the feds keep taking on more debt. The point will eventually be reached that the debt burden will be unaffordable at even low interest rates.
It boggles the mind that our leaders can be so irresponsible...but there you have it. They even maintain (on the advice of 'economists') that if the government were to stop its out of control spending it would be a "shock" to the economy that would affect the 'fragile' recovery.
They must think we're stupid. Where were all these economists prior to the crisis in 2008? None are worth anything - to take advice from these people is to maintain the fallacy that economists have anything of value to say.
Far afield maybe, but it's how this whole thing got started. When will people learn?
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