|We had mixed signals on the economy this morning, plus news on evermore debt creation. As I went to dig up old information on when rising debt-to-GDP fails to be sustainable, I learned that the rules of thumb on this subject may now be obsolete. While I am cautious about the idea, it is interesting to observe that the positive signs in our economy do support arguments for even lower interest rates. Should that happen, would it not allow the Fed and other government agencies to refinance existing debt, or take on more at a lower cost? If so, would not one or both be further stimulating? Then, should not the same be available to consumers? |
In pointing out these things and raising the questions I do, I also have to ask who does not want a better economy for the US? There are more than a few powerful interests who do not - use your imagination.
Here is some interesting reading along the above lines.
Added thought - If people are spending more on personal technology at every lower prices, can not that show up as something of a negative within GDP even as people are seemingly buying more stuff?