Something else we want to look at.
Interest rates and debt.
As snake eating its own tail, the FED creates paper and buys it up later in order to keep rates low. This is working fine as long as you can create 10 units and you only needs 2 units to reach this goal.
And nobody starts to do foolish things.
The rise of ProShares UltraShort Lehman 20+ Year Treasury ETF (ticker: TBT) shows that the price of paper is declining. And that means that long term rates are rising.
Interest rates and debt.
As snake eating its own tail, the FED creates paper and buys it up later in order to keep rates low. This is working fine as long as you can create 10 units and you only needs 2 units to reach this goal.
And nobody starts to do foolish things.
The rise of ProShares UltraShort Lehman 20+ Year Treasury ETF (ticker: TBT) shows that the price of paper is declining. And that means that long term rates are rising.
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