For almost 7 years, I have been preaching to our clients and arguing with industry professionals that the U.S. will be, to a large degree, mired in a LIQUIDITY TRAP for the foreseeable future. Fiscal tightening, constrained financial markets and lower U.S. productivity are all pointing to lower -real interest rates-than would be considered normal for a long time to come. The newly retired former FED Chairman Bernankes recent speech seems to cement my long held position. (see link) Vey simply, as a debtor nation a sharp and sustained rise in interest would have a devastating impact on debt service (and any anemic GDP growth) as a percentage of budget If allowed to rise within historical ranges could become the second largest line item in our budget after Social Security and Medicare. Please telephone us if you would more information on how this might impact your long term investment approach. 1-888-803-2216 finance.yahoo/news/big-ticket-dinners-blunt-bernanke-200233561.htm Page Not Found - Yahoo finance.yahoo
Posted on: Wed, 21 May 2014 11:18:47 +0000
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