http://economicedge.blogspot.com/200...ry-trends.html
nathan's economic edge is an excellent blog with some very interesting charts. in part:
Note that following each recession and each lowering of rates there is a rebound that requires rates to rise, but in the past 30 years, never as high as they were before. In the 2000 to 2003 recession rates were lowered by Greenspan to just 1% - almost zero but not quite. And he did not have to resort to open printing. The next cycle rates hit zero AND they had to print.
Let me ask you this, what happens on the next cycle? People seem to want to argue with that chart, but zero is zero. There are only two possible paths of motion, sideways or up – OR self destruction. Trust me on this, zero is NOT any more normal than 20%!
We are at the end of an era, the era of leverage. We are now staring down the end of a loaded gun with our own finger on the trigger. We can choose to normalize interest rates and suck up the fact that debts don’t grow forever, OR we can pull the trigger and continue to print and to run up debts that we cannot service. The latter is fiscal and governmental suicide. The latter will lead to a loss of confidence in government and the demise of the dollar. That is NOT INFLATION!! That is a LOSS OF CONFIDENCE in a fiat money system, two different things – they are not just a matter of degree.
And thus CHANGE is COMING.
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