Treasury interest rates are hitting a 16-year high. After decades of low rates, that change will have consequences for the federal budget. Those effects are more complicated than they may seem at first, however. In fact, there is reason to believe the long-term result will be positive for both the government budget and the economy as a whole.
Kerry, there will still be speculators, but they won't be subsidized in the same way, as they will then have to pay some real cost on average for their borrowing.
"When the cost of borrowing becomes positive, private investment turns more toward assets that on average are more productive and produce positive real returns for the economy." As opposed to financing speculation, I assume.
Kerry, there will still be speculators, but they won't be subsidized in the same way, as they will then have to pay some real cost on average for their borrowing.
"When the cost of borrowing becomes positive, private investment turns more toward assets that on average are more productive and produce positive real returns for the economy." As opposed to financing speculation, I assume.