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"There is international arbitrage going on in the bond market that is helping drive long-term Treasury yields lower,” Greenspan said"
No it's the end effect of the "modern monetary theory". when you create money out of thin air via issuing debt the debt becomes worthless.
No it's the end effect of the "modern monetary theory". when you create money out of thin air via issuing debt the debt becomes worthless.
....🙄🙄🙄 We have some real "geniuses" running our economy let me tell u. Added to that effect is the governments that issued that debt would rather not pay interest on that debt so they will not support a positive rate. In fact, they will intentionally push interest rates down
They will do this because of human nature. Why pay $600 billion in interest when you can make money with negative interest rates....At some point people will stop buying the worthless debt and governments will have to go back to raising taxes to pay for their spending.
During this time what any long term debt that still cares an interest rate will have to be paid off. This will cause a double whammy as governments are strapped for cash unable to increase spending as they have to raise taxes to met current needs. It will take decades to resolve.
