Wednesday, March 10, 2010

Let us rephrase a question put forward by Zero Hedge

Tyler asks why this happens:
As Budget Deficit Hits Record High, Interest On US Public Debt Hits Record Low
He goes into the monetization of debt by the Fed.

My question is: If government stimulative spending has a multiplier, then why are economic yields going down as we spend more?



I stole this chart from Carpe Diem for the answer.

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