Why are bond yields still so low when everyone warns about inflation and the dangers of default?
Deficits represent an obligation to pay interest to the bondholders. We have to pay the interest, out of our own pockets. Look at the Greek tragedy. Our standard of living will continue heading down.
Taxes and regulations are increasing. People are not hired. Income growth is the lowest of the past expansions. We just cannot afford higher bond yields or higher inflation. It would drive the country into a total collapse.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
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