Subject: Re: Reported U.S. Inflation
"Have investors thought through the implications?"
Keeping rates near zero will be an expensive proposition.
To do that, the treasury will have to sell bonds- lots of them, in a market where nobody wants them because interest rates will be low, so who will buy them? Why of course! The government! Quantitative easing 2.0!
But the hamster on the hamster wheel will have to run faster and faster in pursuit of lower interest rates, but will never catch the carrot, because fewer and fewer people will want to buy bonds and more and more people will be selling these increasingly worthless bits of paper…… bits of paper whose value cannot accurately be determined because governments increasingly obscure the measures of inflation.