Wednesday, January 2, 2013

Business Insider: Climbing Interest Rates Are a Good Sign

Treasury interest rates have been pushed lower since the start of the financial crisis as investors flocked to T-bills and T-bonds for their perceived safety. Now, as the Bernanke money pump is manipulating stocks, bonds and commodities higher, interest rates on Treasury securities are starting to climb.

Joe Weisenthal at BI gets some of this, he writes:
It's just that this [fiscal cliff] deal averts some concerns for the economy, and that means that safe-haven buying of US Treasuries goes away.
The safe-haven buying of Treasury securities is going away, but it has more to do with Bernanke than Boehner. That said, Weisenthal says this about the uptick in interest rates:
It's a good sign.
Well. it is a good sign if you like a Bernanke manipulated economy and huge government deficits. The deficits and price inflation as a result of the Bernanke printing are going to send interest rates on a multi-year ride higher. In a year, Weisenthal will be writing about the dangers of climbing interest rates that all started here on 01-02-13.

I have scheduled Weisenthal's quote to pop up in my email box on 12-31-13. Let's see if he is going to be talking about climbing interest rates as a "good thing" at the end of the year.

The Fed should get out of the interest manipulation game completely, which would mean some climb in rates. If this were the reason for a climb in rates, it would be a good thing, but rates are going to be headed much higher for evil reasons: the Fed creating price inflation and the bloated Federal debt getting way out of control. And that ain't good.

1 comment:

  1. When those rates pop we are not in for a good time. I'm sure the elite will assure there will be another crisis to keep people scared to get them to run to safety which keeps the rates down on that big hunk of the $16.33 T that is churning daily.

    Leadership by crisis is how the evil operate.