The Idea Markets Can Take Control of U.S. Interest Rates is a Myth
Posted by Michael A. Kamperman on February 24, 2013
A myth can be defined as a false collective belief used to justify social policy. The idea that one day the markets will turn against the U.S. Treasury market and drive interest rates to an unsustainable level forcing drastic cuts on the U.S. budget is a false collective belief: a myth. Like all countries that are able to issue debt in their own currencies the U.S. federal government has an agency that is charged with controlling interest rates, the Federal Reserve. In Britain they have the Bank of England and in Japan they have the Bank of Japan and so on and so forth for all sovereign debt issuers. The markets do not control the direction of interest rates over any extended period of time. In the U.S. the Federal Reserve controls both short and long term interest rates. Short term interest rates have historically been kept on a very short leash. Long term interest rates are normally kept on a long leash and allowed to roam within an acceptable range. But the Federal Reserve can take control of long term interest rates when it desires to do so. Right now quantitative easing is designed to lower long term interest rates. If necessary, the Federal Reserve could purchase every Treasury Bond offered for sale to bend long term rates to its will. In the early 1980′s the Volcker led Fed took short term rates to 20% to force longer term rates higher in-order to slow down inflation. The simple point is the Federal Reserve is the ultimate arbiter of what rates will be and not the markets.
The myth that markets can take control of U.S. interest rates is the current justification for the U.S. to implement austerity policies. Despite recent evidence austerity is not working on either an economic level or a budget level calls remain to implement austerity based on this false collective belief. More and more people are coming to understand that the U.S. cannot default because it owes everyone dollars, which it can print. But almost no one is pointing out the obvious, it is the Federal Reserve that controls our interest rates and not the markets. The reason rates in Japan are even lower than rates in the U.S., despite a debt to GDP ratio approaching almost triple the U.S. debt to GDP ratio, is the Bank of Japan controls their rates and not markets.
Before the U.S. can create a political climate that will allow the federal government to enact stimulus policies to end massive understated unemployment, the false collective belief that the markets will one day punish the U.S. with sky high interest rates must be exposed for what it is: a myth. Unfortunately, the political conversation surrounding the spending cuts in the sequester are creating an environment whereby harmful cuts to the U.S. economy will not be averted. The President’s call for a “balanced approach” that includes new revenue is a good talking point to prevent additional cuts beyond the sequester. But they are terrible talking points in attempting to avoid the sequester. There is no political support amongst Republicans to raise more tax revenue and insisting tax increases be included in any deal to replace the sequester guarantees there will be no deal. The President should talk about how there is not an imminent threat to the U.S. fiscal position and that high unemployment is a much bigger threat to our nation. He should offer to drop calls for new revenue in exchange for a reduction in spending cuts. After all, the U.S. does not need additional tax revenues because the deficit and the debt are not problems. Unemployment on the other hand is a huge problem.
konto osobiste said,
Same exact evening payments financial products are generally a form of cash advance loans given for that calendar month span within disaster circumstances.
That they don’t want that proof of situations’ urgent,
not they might require surety, credit ranking nor other stuff.
You could prepare a secondary, several essential buys or even
just take care of your online business obligations – Comparable
morning sequel financial loans will let you in a instances.
Nowadays these types of funds are accessible via the internet.
My blog konto osobiste
louis vuitton wallet sale said,
But wanna state that this is very useful , Thanks for taking your time to write this.
louis vuitton wallet sale http://www.louisvuittonoutletnewyorks.com/
hermes belt said,
I dugg some of you post as I cogitated they were very helpful very helpful
hermes belt http://www.hermesbeltukuk.com/
sac louis vuitton said,
I really appreciate this post. I’ve been looking everywhere for this! Thank goodness I found it on Bing. You have made my day! Thx again!
sac louis vuitton http://www.saclouisvuittonbelgique.com/
kidshow said,
great submit, very informative. I ponder why the other experts of this sector do not notice this. You must continue your writing. I’m sure, you have a huge readers’ base already!
buy clomid no prescription said,
vCrtU8 Very good article post.Much thanks again. Will read on…
social bookmarks said,
lC3hWn Muchos Gracias for your blog article. Awesome.
social bookmarks said,
gpN4Er Awesome blog.Much thanks again. Want more.
social bookmarking service said,
2ZWtti Really appreciate you sharing this blog post. Want more.
social bookmarks said,
IFd8vO Thanks for the blog post.Really looking forward to read more. Really Great.
social bookmarks said,
OmsvGH Thanks-a-mundo for the article post.Really thank you! Really Cool.
social bookmarks said,
Jx3HF8 I truly appreciate this article post.Thanks Again. Awesome.
click here said,
aPbAhf Wow, great article.Really thank you! Really Great.
viagra said,
NsFwuk Major thanks for the blog article.Really looking forward to read more.
buy viagra online said,
MFOHwq I truly appreciate this blog.Thanks Again. Much obliged.
buy viagra said,
ZQ1qx7 Appreciate you sharing, great post.Much thanks again. Want more.
buy viagra online said,
ULCPNw Thanks again for the blog post.Really thank you! Really Cool.
buy viagra said,
JX56q4 wow, awesome article.Much thanks again. Want more.
viagra said,
6ba7xE Major thanks for the blog article.Really looking forward to read more.
buy viagra online said,
hRi0pP Enjoyed every bit of your blog article.Really thank you! Want more.
viagra said,
pWLeNv Very good blog. Awesome.
http://1buyviagrahere.com/ said,
Trt92w Im thankful for the post. Want more.
click here said,
gdfAkc Thanks so much for the post.Thanks Again. Will read on…
buy viagra online said,
S9Ndcp Thank you for your post.Thanks Again. Will read on…
http://1buyviagrahere.com/ said,
WURZLQ Very informative article post.Really looking forward to read more. Want more.
http://1buyviagrahere.com/ said,
ecrzvS I truly appreciate this blog article. Keep writing.
viagra said,
XL0uWQ Major thankies for the post.Really looking forward to read more. Keep writing.
buy viagra online said,
Y5A3Bd I really enjoy the article post.Really looking forward to read more. Want more.
viagra said,
SvLEuN Great post.Really looking forward to read more. Fantastic.
buy viagra online said,
k2bwBR Very good blog.Much thanks again. Will read on…
click here said,
7PyB7G Really enjoyed this blog.Much thanks again. Want more.
viagra said,
qoHzEf Enjoyed every bit of your post.Really looking forward to read more. Keep writing.
viagra online said,
dfPVl3 Thank you ever so for you blog.Really looking forward to read more. Want more.
buy viagra online said,
8vw37c Thanks for sharing, this is a fantastic article post.Much thanks again. Want more.
click here said,
Zlcw5Q wow, awesome blog.Really looking forward to read more.
buy viagra online said,
b7VLZj Thanks so much for the article.Thanks Again.
http://1buyviagrahere.com/ said,
w6UdMJ Thanks a lot for the article.Really thank you! Awesome.
buy viagra online said,
pgspof Looking forward to reading more. Great blog. Great.
http://1buyviagrahere.com/ said,
x91QoM Thanks-a-mundo for the blog.
buy viagra online said,
5JgxzJ Really informative blog post.Really looking forward to read more. Awesome.
buy viagra online said,
Xc2NVi Thanks for sharing, this is a fantastic post.Really thank you! Want more.
click here said,
zDlqc3 Great blog post.Thanks Again. Fantastic.
buy viagra online said,
ROy4F3 I loved your blog.Really thank you! Awesome.
viagra said,
Ra5Red I really liked your post.Really thank you! Really Cool.
buy discount viagra said,
UaDgYk Say, you got a nice blog. Want more.
buy discount viagra said,
UMDpPW Thanks for the article.Much thanks again. Cool.
buy discount viagra online said,
tI7xML Thanks for the article post. Want more.
buy viagra online said,
8e7iKJ Awesome post.Really thank you! Really Cool.
buy viagra online said,
Ij0O7H Major thanks for the article.Much thanks again. Really Great.
viagra online said,
NNYnI9 Im obliged for the article.Really thank you! Great.
buy discount viagra said,
B8NI43 Looking forward to reading more. Great blog post.Really thank you! Keep writing.
buy discount viagra online said,
URs8xG Thank you ever so for you blog.Really thank you! Cool.
viagra online said,
uFZpPK I am so grateful for your article.Really thank you!
buy viagra online said,
hWiNZl Thanks-a-mundo for the article.Really thank you! Really Great.
buy discount viagra said,
8knmgR I really like and appreciate your blog post.
buy discount viagra said,
lgPpVz Major thanks for the article.Really thank you! Cool.
http://1buyviagrahere.com/ said,
1iJXTu Beneficial document helps make frequent advance, appreciate it write about, this pile-up connected with expertise is usually to hold finding out, focus is usually the beginning of money.
buy discount viagra said,
9BhcUH Great blog article.Really thank you! Fantastic.
viagra online said,
i4dvpI I value the blog article.Really looking forward to read more. Fantastic.
amazing site said,
lWre0A Hey, thanks for the article post.Really looking forward to read more. Will read on…
click here said,
wrxZJL Im thankful for the blog.Really looking forward to read more. Keep writing.
buy discount viagra said,
QM9nGj I am so grateful for your article.Really thank you! Much obliged.
http://1buyviagrahere.com/ said,
w8NrTH Wow, great blog post. Want more.
buy discount viagra said,
sznMBB Looking forward to reading more. Great article post. Keep writing.
buy discount viagra online said,
lTedhV Very informative blog post.Thanks Again. Fantastic.
click here said,
QQuNbz Thanks a lot for the blog article.Thanks Again. Really Great.
buy discount viagra online said,
rReUYw Really enjoyed this article post.Much thanks again. Will read on…
buy discount viagra online said,
IPhX7K I think this is a real great article post.Thanks Again. Fantastic.
amazing site said,
LwUdzu I loved your article. Cool.
buy discount viagra said,
orQrpj Hey, thanks for the blog article.Really looking forward to read more.
buy viagra online said,
WXm7tH Very good article. Keep writing.
amazing site said,
ODcYwe Thanks so much for the blog.Much thanks again. Cool.
buy discount viagra said,
L5BG8O Say, you got a nice blog. Want more.
click here said,
gvGuTv I really enjoy the blog article.Much thanks again. Keep writing.
http://1buyviagrahere.com/ said,
YJPOdc Thank you ever so for you article.Really looking forward to read more.
buy discount viagra said,
YamLcS Say, you got a nice blog post.Really looking forward to read more. Fantastic.
http://1buyviagrahere.com/ said,
3kP2jU Thank you for your blog article. Will read on…
buy discount viagra online said,
xLOQDT Thanks so much for the blog.Much thanks again. Fantastic.
buy discount viagra said,
8gCxtt Fantastic article post.Thanks Again. Really Cool.
http://1buyviagrahere.com/ said,
dMsIUW Very good blog.Thanks Again. Much obliged.
buy discount viagra said,
1w7Y6v I really liked your article.Thanks Again. Really Cool.
buy discount viagra online said,
xBROdo A big thank you for your blog.Much thanks again.
buy discount viagra online said,
RHM73y I appreciate you sharing this article.Thanks Again. Awesome.
buy discount viagra online said,
eIbRO9 A big thank you for your blog article.Much thanks again. Keep writing.
click here said,
vLy3aI Looking forward to reading more. Great post. Cool.
http://1buyviagrahere.com/ said,
BydHCR Really informative article post.Really looking forward to read more. Want more.
buy viagra online said,
Appreciate you sharing, great blog post.Much thanks again. Will read on…
click here said,
9tHlXo Thanks-a-mundo for the blog.Much thanks again. Cool.
buy viagra online said,
Awesome article post.Really thank you! Cool.
click here said,
wFDAYd I really enjoy the article post.Much thanks again. Awesome.
buy discount viagra online said,
pX8TeK Awesome blog article.Thanks Again. Awesome.
buy discount viagra said,
Im grateful for the blog article.Really thank you!
buy viagra online said,
ZUuQja Thanks for sharing, this is a fantastic article post.Much thanks again. Much obliged.
http://1buyviagrahere.com/ said,
OaOsWv Major thankies for the article. Awesome.
buy viagra online said,
Gmki2D Say, you got a nice blog article.Really thank you! Really Cool.
buy discount viagra online said,
VDArTo Really informative article post.Much thanks again. Fantastic.
amazing site said,
EiieNJ Thanks a lot for the blog article.Thanks Again. Fantastic.
amazing site said,
nKpNYQ Thanks-a-mundo for the blog.Much thanks again. Fantastic.
amazing site said,
WiiXiq wow, awesome article post.Really looking forward to read more. Much obliged.
buy viagra online said,
Ed4NP9 wow, awesome blog post.Much thanks again. Cool.
http://1buyviagrahere.com/ said,
5vX20Z Very good blog post.Really thank you! Cool.
http://1buyviagrahere.com/ said,
koa8qr I truly appreciate this post.Really looking forward to read more. Really Cool.
buy discount viagra said,
QEP1Jo Great blog article.Really looking forward to read more. Really Great.
click here said,
QY43Uh Muchos Gracias for your blog.Really looking forward to read more. Great.
http://1buyviagrahere.com/ said,
FiHU81 Thank you ever so for you article post.Really looking forward to read more. Awesome.
buy discount viagra said,
Wf0b24 Thank you ever so for you blog. Great.
buy viagra online said,
4CHVU3 Say, you got a nice post.Much thanks again. Keep writing.
buy viagra online said,
2MO9po Im grateful for the blog article. Will read on…
click here said,
sr2fQI Thanks-a-mundo for the article post.Much thanks again. Awesome.
amazing site said,
lY8Dte Really appreciate you sharing this blog post. Much obliged.
buy discount viagra online said,
QmjNb2 Great, thanks for sharing this article post. Cool.
amazing site said,
OwChZX Im grateful for the article.
amazing site said,
5ttD9R I am so grateful for your blog.Really looking forward to read more. Really Cool.
amazing site said,
YZHpTr Thanks a lot for the article post.Thanks Again. Keep writing.
buy discount viagra said,
lXIXBF Thanks again for the article post.Really thank you! Cool.
amazing site said,
fs6PlX Thank you for your article post.Thanks Again. Fantastic.
buy viagra online said,
CBKgcU Muchos Gracias for your article. Keep writing.
click here said,
1LwUdz Looking forward to reading more. Great post. Really Great.
buy viagra online said,
qG0mgr Fantastic article post.Really thank you! Much obliged.
buy discount viagra online said,
gTL36O Thank you ever so for you blog article.Thanks Again. Want more.
click here said,
tZBqXU Thank you ever so for you blog article.Much thanks again. Great.
buy discount viagra online said,
MQsmrB A round of applause for your article.Really thank you! Cool.
buy discount viagra said,
T5sJwP Awesome post.Really looking forward to read more. Really Great.
buy discount viagra said,
a4bZZj A big thank you for your article post.Really looking forward to read more. Will read on…
buy discount viagra said,
42Cyg8 Enjoyed every bit of your blog.Really thank you!
buy discount viagra said,
XzeSW0 Major thankies for the blog post.Thanks Again. Keep writing.
buy discount viagra online said,
8fVNjA Awesome blog.Really thank you! Cool.
buy discount viagra said,
ICAf4a Wow, great article post.Much thanks again. Want more.
buy discount viagra online said,
YdDRqt Very good article post.Much thanks again.
buy discount viagra online said,
7yQyhJ Hey, thanks for the blog post.Thanks Again. Really Cool.
amazing site said,
g0G78f Very neat blog post. Much obliged.
http://1buyviagrahere.com/ said,
zveFiN Thank you for your post.Really looking forward to read more. Want more.
buy discount viagra online said,
wkJqg2 Thanks so much for the article.Much thanks again. Fantastic.
buy discount viagra said,
ep2TVi I loved your blog post.Really thank you! Really Cool.
buy discount viagra online said,
rpD1uC Thanks for the article post.Really thank you! Fantastic.
buy discount viagra online said,
Wz4ehG I truly appreciate this blog.Really looking forward to read more. Will read on…
buy discount viagra online said,
PpyIIf Really enjoyed this article post.Much thanks again. Will read on…
buy discount viagra said,
FKoFWw A big thank you for your blog post.Really looking forward to read more. Much obliged.
click here said,
stcNQE I value the article post.Really thank you! Keep writing.
buy discount viagra said,
hRC2cc Thanks for sharing, this is a fantastic post.Really thank you! Will read on…
buy discount viagra said,
d5UujX Thanks for sharing, this is a fantastic blog post.Really thank you!
buy discount viagra online said,
kN37zH Thanks for sharing, this is a fantastic blog post.Really looking forward to read more.
http://1buyviagrahere.com/ said,
HfV11z Wow, great article post.Really looking forward to read more. Will read on…
buy discount viagra said,
Ve0bZx Great post.Much thanks again. Want more.
viagra online said,
WhL83I Really informative blog.Thanks Again. Really Cool.
amazing site said,
4sF3dE Wow, great blog post.Really looking forward to read more. Cool.
amazing site said,
M5f6pd Thanks so much for the article post.Much thanks again. Want more.
viagra online said,
i4J3rF wow, awesome blog post.Thanks Again. Cool.
buy viagra online said,
CNu9Yr Thanks for the article post. Really Cool.
click here said,
Bmdbz6 Thank you ever so for you blog.Really looking forward to read more. Awesome.
viagra online said,
nq9FEg Really enjoyed this blog.Thanks Again. Awesome.
viagra online said,
fce242 Thanks again for the blog post.Really thank you! Great.
buy discount viagra online said,
SmFxq1 Thanks for sharing, this is a fantastic blog post.Really looking forward to read more.
buy discount viagra online said,
Keo8em Say, you got a nice blog post.Really looking forward to read more. Much obliged.
buy viagra online said,
GBJaar I truly appreciate this blog post.Really thank you! Much obliged.
buy viagra online said,
BN8I1v Great, thanks for sharing this article post. Keep writing.
click here said,
gaPtZd Really appreciate you sharing this blog post.Thanks Again. Cool.
buy discount viagra said,
jjqTO6 Thank you ever so for you article post.Much thanks again. Great.
buy discount viagra online said,
jVwmnU Very informative blog post.Thanks Again. Fantastic.
buy discount viagra online said,
iSrl4x Im thankful for the post.Really thank you! Want more.
viagra online said,
g46X8y I value the article.Really thank you! Awesome.
buy discount viagra online said,
Dv4Zwn Say, you got a nice article.Much thanks again. Really Cool.
buy discount viagra online said,
LKeClw Very informative post.Much thanks again. Will read on…
viagra online said,
q2ZZxw Hey, thanks for the article. Great.
buy discount viagra online said,
DN5Mrg Say, you got a nice blog.Really looking forward to read more. Will read on…
buy discount viagra said,
rKyWBf I really liked your article.Thanks Again. Really Cool.
buy viagra online said,
84KosB Looking forward to reading more. Great blog article. Awesome.
buy discount viagra online said,
DdOnQd Fantastic blog post.Much thanks again. Fantastic.
buy discount viagra said,
dHxguN Enjoyed every bit of your post.Much thanks again. Much obliged.
http://1buyviagrahere.com/ said,
jdRhZ2 I cannot thank you enough for the blog article.Much thanks again. Want more.
buy discount viagra said,
pCB2mn Great, thanks for sharing this blog post.Much thanks again. Much obliged.
buy discount viagra said,
ygv06H Really appreciate you sharing this blog post.Much thanks again. Will read on…
buy discount viagra online said,
Kid1Rn I really liked your blog.Really looking forward to read more. Really Cool.
buy discount viagra said,
eWc0Gy Really appreciate you sharing this blog. Will read on…
amazing site said,
z6BJRj Very good article post.Thanks Again. Awesome.
buy discount viagra online said,
zsNoGo I really liked your article post. Really Cool.
viagra online said,
GHSrko I really like and appreciate your article.Really thank you! Will read on…
buy discount viagra online said,
sEntPI Really appreciate you sharing this blog post.Really looking forward to read more. Great.
buy discount viagra online said,
Zd3pbj I appreciate you sharing this article post.Really thank you! Will read on…
click here said,
wXJ8Qn I am so grateful for your blog article.Really thank you! Cool.
buy discount viagra said,
E8kBIa Fantastic blog.Really thank you! Great.
amazing site said,
qa80Ww Really appreciate you sharing this blog.Really looking forward to read more. Want more.
buy discount viagra online said,
3YKAh3 Thanks again for the blog.Much thanks again. Fantastic.
buy discount viagra online said,
QQtDrF I really like and appreciate your article post.Much thanks again. Really Cool.
buy discount viagra said,
iDYUme Hey, thanks for the blog article.Much thanks again. Fantastic.
http://1buyviagrahere.com/ said,
dlBTgG Really informative blog post.Much thanks again. Much obliged.
http://1buyviagrahere.com/ said,
fgomyT I am so grateful for your article post.Really looking forward to read more. Awesome.
viagra online said,
20VYxX Hey, thanks for the article post.Really thank you! Keep writing.
buy discount viagra online said,
38ZVfe Really enjoyed this blog.Really looking forward to read more. Really Great.
amazing site said,
OkGIjA Really enjoyed this article.Much thanks again. Great.
buy discount viagra online said,
x6qloy A round of applause for your blog.Much thanks again. Fantastic.
buy discount viagra online said,
iFdJjY Thanks for the article.Thanks Again. Really Great.
buy discount viagra said,
6tE2RK Enjoyed every bit of your article post. Want more.
http://1buyviagrahere.com/ said,
8c6z8z Enjoyed every bit of your blog article. Will read on…
buy discount viagra said,
EAkNmR I really like and appreciate your blog.Really looking forward to read more.
viagra online said,
ZltqrD Major thanks for the article post.Much thanks again. Fantastic.
buy discount viagra online said,
y7ThZd A big thank you for your blog.Much thanks again.
viagra online said,
TYkDPO Thanks again for the blog.Thanks Again. Really Cool.
buy discount viagra said,
koMKbK I cannot thank you enough for the post.Much thanks again. Fantastic.
buy discount viagra said,
K45fzf I loved your article.Much thanks again. Cool.
viagra online said,
JoXBkV Thanks-a-mundo for the article post.Thanks Again. Great.
amazing site said,
ve8DQc Im grateful for the blog.Much thanks again. Cool.
click here said,
wsXgSJ I cannot thank you enough for the post. Keep writing.
buy discount viagra online said,
LayLSo I really enjoy the post. Awesome.
viagra online said,
DvudUm I loved your blog article.Thanks Again.
amazing site said,
1bOdkP Awesome article. Will read on…
buy viagra online said,
FDnBUg I appreciate you sharing this blog post.Thanks Again. Really Cool.
buy discount viagra online said,
Maq4Jn I truly appreciate this article post.Really thank you! Keep writing.
viagra online said,
f9fnTg I value the blog.Thanks Again. Really Great.
buy discount viagra online said,
aDNgaW Really informative blog article. Fantastic.
buy discount viagra said,
AQkeQu Really enjoyed this blog article.Really thank you! Cool.
buy discount viagra online said,
HiSu7k I truly appreciate this article.Really thank you! Keep writing.
buy viagra online said,
Qm5Zax Fantastic post. Much obliged.
buy discount viagra online said,
AxbMta I really enjoy the post.Thanks Again. Great.
buy viagra online said,
BMTty7 I truly appreciate this blog post.Really thank you! Great.
buy discount viagra online said,
9pAmft Very neat blog.Much thanks again. Really Great.
buy discount viagra online said,
FPt5fz I really liked your blog.Much thanks again. Great.
ルイヴィトン コピー ベルト said,
やっぱり神７とか言われてた頃のイメージが強い。
viagra online said,
I8uezj I truly appreciate this blog post.Much thanks again. Keep writing.
buy discount viagra said,
8ZIVLe Thank you ever so for you blog article. Great.
buy viagra online said,
CvFlfM I cannot thank you enough for the post.Really looking forward to read more. Want more.
buy discount viagra online said,
NWzMJX Thanks again for the article post.Much thanks again. Awesome.
buy discount viagra online said,
zFY3cE Great post. Want more.
buy discount viagra online said,
kXxVg1 Appreciate you sharing, great article post.Much thanks again. Cool.
buy discount viagra online said,
mWPf9k wow, awesome blog post. Much obliged.
buy viagra online said,
rst93i wow, awesome article.Thanks Again. Cool.
buy discount viagra online said,
AJkcaY Im obliged for the article post.Thanks Again. Awesome.