Monday, October 19, 2009
Treasuries Show No Lost Appetite With Dollar Declines
They still don't get it. The media is baffled as are many analysts and economists as to why Treasury demand remains so robust. They don't understand that the money to buy Treasuries comes from Government spending itself. There is no "lending" per se. As long as the Gov't is deficit spending and the Fed is maintaining zero-percent rates, there is going to be plenty of money to buy Treasuries.
They have it all wrong, but refuse to even try to understand the true dynamic of what is happening. And if you try to explain it to them, they will argue vociferously as to how you are wrong.
Here are some of the mainstream's "explanations"...