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He already has. Countries are dumping Treasuries and he's now buying up LT Treasuries to keep rates low. But yields on the T's are ever so slowly going up in spite of his efforts.
But yields on the T's are ever so slowly going up in spite of his efforts.
Considering the yield on 30 year treasury bonds is 3.22 (the yield on short term bonds isn't even worth discussing) they will have to do more than creep to before they will even crawl towards anything inflationary.
PS - why do some people think that inflation is by definition bad regardless of any economic indicators?
Considering the yield on 30 year treasury bonds is 3.22 (the yield on short term bonds isn't even worth discussing) they will have to do more than creep to before they will even crawl towards anything inflationary.
PS - why do some people think that inflation is by definition bad regardless of any economic indicators?
Because inflation is like running in place? You perform a lot of work (consume calories), but you don't get anywhere?
Considering the yield on 30 year treasury bonds is 3.22 (the yield on short term bonds isn't even worth discussing) they will have to do more than creep to before they will even crawl towards anything inflationary.
PS - why do some people think that inflation is by definition bad regardless of any economic indicators?
But those interest rates are a hit to the government who has to pay them.
We only have so much money. Bernanke has to keep the rates low so we are not hit with increasing interest payments. We already have to borrow to make those interest payments and that's rocky ground to play on.
I will admit though..Bernanke has done a good job of juggling all these and has made the quick moves to suppress increased rates.
But it does hurt the saver.
I wasn't implying inflation here but higher rates means the government has to pay out more in interest payments.
Considering the yield on 30 year treasury bonds is 3.22 (the yield on short term bonds isn't even worth discussing) they will have to do more than creep to before they will even crawl towards anything inflationary.
PS - why do some people think that inflation is by definition bad regardless of any economic indicators?
He already has. Countries are dumping Treasuries and he's now buying up LT Treasuries to keep rates low. But yields on the T's are ever so slowly going up in spite of his efforts.
PS - why do some people think that inflation is by definition bad regardless of any economic indicators?
Simple math. Any system expanded at a constant linear rate, even in small amounts, will end up with exponential growth and eventually collapse. It's math and can't be avoided.
Every central banker knows this. Every central banker knows that no fiat currency has lasted longer than 50-70 years and this is exactly the reason why.
On the OP's question, there is nothing else that Bernanke can do. He has dropped the cost of money to ~0%. When people have no way to pay back the debt that he creates they won't participate.
Our economy is moving slowly. He might tamper with interest rates and start another bubble to get things up and moving.
The housing bubble has not yet burst and foreclosed upon homes are being held off the market. Fannie/Freddie is a huge shoe that still has to be dropped.
The student loan bubble.........that is going to be a biggie!
As long as their is The FED and unsound monetary policies, there will be bubbles.
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Ben and Barney walk on Waters to some
