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View Diary: The Volker deficits, the Clinton recovery and funding Bush's disasters (5 comments)

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  •  An interesting point about the current ... (0+ / 0-)

    ... interest rate environment is that the Treasury has an incentive to keep interest rates low so that they can 'refinance' the high-interest rate debt that had been issued thirty years ago and is now coming due.

    The importance of this point is that the Treasury has a disincentive to promote growth which would raise interest rates.  So stimulus will not be forthcoming until thirty years worth of high-interest rate debt has been converted to low-interest rate debt.

    Please do not be alarmed. We are about to engage... the nozzle.

    by Terrapin on Wed May 22, 2013 at 09:57:37 AM PDT

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