tag:blogger.com,1999:blog-6399730406480392183.post3660384858751291805..comments2024-03-27T11:18:34.222-03:00Comments on Viable Opposition: The Looming Bond BubbleA Political Junkiehttp://www.blogger.com/profile/03342345936277964422noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6399730406480392183.post-21972964194521380932014-01-10T17:33:05.892-04:002014-01-10T17:33:05.892-04:00What I'm seeing develop is an "almost sur...What I'm seeing develop is an "almost surreal" feeling of indifference towards reality. Companies have already ushered saving from interest paid on debt into the earning column and a major reason inflation remains low is they are sitting on a hoard of cash this has lowered the velocity of money. We must remember the artificially low FED controlled interest rates are a massive one-off or onetime tailwind that is mainly behind us. When they stop going lower or reverse the positive effect will ebb and become a major headwind. With massive government debt in many countries and the economy still weak this headwind has the potential to become devastating. Below is a post that goes into the fatal flaw in current monetary policy and how we have been lulled into complacency as to the risk involved.<br /><br />http://brucewilds.blogspot.com/2014/01/have-we-been-lulled-into-complacency.html Bruce Wildshttps://www.blogger.com/profile/10181323607060607040noreply@blogger.com