We have become a mining economy

As expected, today the Fed cut rates. Bryce recaps the Fed’s policy stance, takeaways from the meeting and how the market reacted. Steve uncovers a relationship between the energy market and bonds: the more the US has become a net exporter of energy, the more downward bias on the term premium of long-duration bonds.

Our Treasury curve is not something generated by a complex industrial economy.  This market analyst just confirms the fact.  We have low productivity, we are constrained by the imbalances of a generation. If nothing is done we will become another Russian economy, and be dependent upon Chinese technology. Our fate, and our boomer entitlements were all assuming our complex manufacturing economy would continue.