David Leonhard in NYT: > Yet Mr. Bernanke and other economists usually add another point. Any > additional spending now, they say, should be paired with future > deficit reduction. Otherwise, the long-term deficit will continue to > rise, and nervous investors may eventually demand that the federal > government pay higher interest rates.
This is what QE2 is about. QE2 is Fed lending to the Treasury in disguise and at very low interest rates: the Fed sends 85% of the interest payments back to the Treasury. The Fed can send all of it back, if it so chooses. Best, Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
