Low Interest Rates and Jelly Doughnuts

[hobbyguy]

http://www.economist.com/blogs/buttonwood/2012/11/monetary-policy-1

Interesting to see an opposing voice to Bernanke's low interest rate policy coming from a hedge fund manager, and he is not alone. The jelly doughnut analogy is good, eating one will perk you up with a sugar rush, but eat too many and you become sick. He argues that the low interest rate policy has long past that point.

I agree with him.

[Glacier]

I've been saying this for years now, so ya, I agree too.

[Sn0man]

What would happen to the US debt given a rise in interest rates by just 1%? They'd probably go bankrupt overnight.

[hobbyguy]

I suspect not much as Bernanke can manipulate the bond rates - just as he has been doing right now.

Perhaps though, it might be a good thing as the prospect of higher rates might put a fire under the politicians to work something out instead of just posturing and finger pointing.