The Nightmare of Low Interest Rates Continues

Interest rates on US treasury bonds continue to decline. Contrary to conventional wisdom, low interest rates hurt the economy. 

Here of some highlights of an article I wrote 18 months ago. US 10-year Treasury yield was 2.4% at the time of article. Currently, the same rate is 1.7% 

"Financial markets live in terror of the day the Federal Reserve raises interest rates. However, we should fear exactly the opposite: a persistent nightmare of low interest rates. Chronically low interest rates signal trouble, and they inflict financial pain. Ominously, a recent economic poll (interpreted correctly) suggests that interest rates are going to fall, not rise. ...

And the bad news is that U.S. interest rates are likely headed lower. This spring, 100 percent of surveyed economists predicted rising rates. And if 100 percent of economists believe anything, they are almost surely wrong."

Click on the image of this homeless senior citizen to read the full article. 

Federal Reserve Policy is Punishing Senior Citizens