Richard Bernstein on the US

Current monetary policy will have to end soon

Few things are certain in this world, but interest rates have been going down steadily in the US since 1981. Despite the Federal Reserve’s pursuit to keep rates artificially low in an attempt to fend off broad-based deflation, current monetary policy will have to end sooner or later. When you consider foreign demand for US Treasury debt may be waning as the US general government debt approaches 100% of GDP, we remain ever mindful yields have potential to reverse their 29-year course. For years, the private market has encouraged deficit financing by loaning its capital to OECD countrie...