Really, no matter how completely I contemplate it, no matter how deeply I delve into it, I simply cannot wrap my Vulcan mind around the chart below (courtesy of Mish’s blog, found here: http://globaleconomicanalysis.blogspot.com/2011/09/2-year-10-year-treasury-yields-
For, I was screaming:
“This can’t go on!!!”
…thirty years ago, when Uncle Thug’s total debt reached one measly trillion dollars…and interest rate on T-bills hit 16% in 1980.
Well, fast-forward to today, and despite the fact that Uncle has now run up FIFTEEN TRILLION dollars of debt (and rapidly adding to that number), the chart below shows Treasury yields crashing to near-zero. Again. For the second time in three years.
Never, ever, in a million-jillion years would I EVER have believed this would have been possible thirty years ago.
But here we are.
(Spock Conclusion): I give up. I’m even more stupider than I previously thought…or my many detractors have accused me of being. Nothing makes sense any more. Treasury yields collapse, The Fed does swaps with ChocoZone banks, supplying them with supposedly “worthless” U.S. digi dollars, stock markets sky, then crash, then re-sky, then re-crash, Uncle (and the entire world) run up infinite amounts of debt, but pay FAR less in interest than three decades ago, yet out on the streets of the average American city, life goes on as if there were no problems anywhere, at all.
I swear, sometimes I feel like a visitor from another planet…wait a minute, I AM a visitor from another planet…LOL