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| I guess I’m somewhere in the middle camp, John. I can see the fed tightening up liquidity and keeping the interest rates firm to modestly higher when everyone else is betting lower. Because of the size of our debt, I don’t think we need Volcker type interest rates to shake things up. Modesty higher will probably do the job. I’m guessing that is why they picked Warsh as the nominee. Sending a message that rates aren’t going back to zero. I don’t understand why those in power would want to risk an entire new system when the current one seems to be working pretty well for them. | |
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Reversing the debt based death spiral
