Idiocy continues when it comes to the finances of the United States.
The Federal Reserve is puzzled by the steepening of the yield curve. This refers to the fact that longer term rates are increasing while short term rates remain basically unchanged. While this is mentioned as an option, it’s gotta be nothing short of obvious to anyone with half a brain…
The borrowers are concerned about being paid back with a devalued currency. Can you say inflation? Of course, it’s no wonder the Fed is puzzled, as they are worried about 2.7% inflation! Talking about burying your head in the sand.
And then we have Treasury Secretary Timothy Geithner over in China attempting to reassure the Chinese government that we’re going to pay back our debt.
Treasury Secretary Timothy Geithner arrived in Beijing with a pledge that the Obama administration will control its borrowing as he sought to reassure China its holdings of U.S. government debt are safe.
LOL!
