Wednesday, April 23rd11.8°C
19345

Low Interest Rates and Jelly Doughnuts

Your thoughts on environment issues and economic issues.

Moderators: Jo, ferri, Merry, Triple 6

Low Interest Rates and Jelly Doughnuts

Postby hobbyguy » Nov 14th, 2012, 10:04 am

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.
“Science is what we have learned about how to keep from fooling ourselves.”
― Richard P. Feynman
hobbyguy
Übergod
 
Posts: 1965
Likes: 57 posts
Liked in: 325 posts
Joined: Jan 20th, 2011, 9:10 pm

Re: Low Interest Rates and Jelly Doughnuts

Postby Glacier » Nov 14th, 2012, 5:09 pm

I've been saying this for years now, so ya, I agree too.
What's the difference between ignorance and apathy? ... I don't know, and I don't care.
User avatar
Glacier
Buddha of the Board
 
Posts: 15237
Likes: 202 posts
Liked in: 648 posts
Joined: Jul 6th, 2008, 10:41 pm

Re: Low Interest Rates and Jelly Doughnuts

Postby Sn0man » Nov 14th, 2012, 6:10 pm

What would happen to the US debt given a rise in interest rates by just 1%? They'd probably go bankrupt overnight.
Sunshine tax rebate recipient
User avatar
Sn0man
Generalissimo Postalot
 
Posts: 864
Likes: 29 posts
Liked in: 25 posts
Joined: May 6th, 2010, 1:05 pm
Location: Alberta

Re: Low Interest Rates and Jelly Doughnuts

Postby hobbyguy » Nov 15th, 2012, 11:30 pm

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.
“Science is what we have learned about how to keep from fooling ourselves.”
― Richard P. Feynman
hobbyguy
Übergod
 
Posts: 1965
Likes: 57 posts
Liked in: 325 posts
Joined: Jan 20th, 2011, 9:10 pm


Return to Environmental & Economic Concerns

Who is online

Users browsing this forum: No registered users and 1 guest