January 6, 2012

WHEN IDEOLOGY CONFRONTS REALITY:

U.S. 10-Year Treasury Note Near 2% - Low Interest Rates Continue for U.S. Government (JOSEPH LAZZARO, January 6, 2012, IB Times)

With every month there's a "warning" from conservatives, supply-side economics advocates, and inflation hawks alike that both inflation and interest rates are about to vault higher, due to the U.S. Federal Reserve's quantitative easing program and Congress' prior fiscal stimulus to avert a depression.

But with each month, the problem does not appear. Take interest rates, for example.

Have you seen what's happened to the interest rate on the 10-year U.S. Treasury bond in the past year?

A year ago, in February 2011, investors charged the U.S. government 4 percent to borrow money for 10 years. Today? The U.S. government can borrow money for 10 years at 1.97 percent and there's talk the interest rate may drop even more.

Posted by at January 6, 2012 6:42 PM
  

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