Fly Like an Eagle

Plummet like a turd. Too strong? May be. Here's another attempt to explain the bond and interest rate problem.

Here's what the Right Wing used to say, this from the St. Louis Fed:

The cost of government borrowing is the "crowding out effect": Investment funds mobilized by the government cannot be used in the private sector.

Of course, now these morons want "risk free" interest to be higher, since the Masters of The World can't figure out how to turn fiduciary capital into real capital.

None of these folks address the obvious question: why are corps accumulating so much moolah, and demanding that the taxpayer send them more in interest? If they were really of Darwin, Smith, and Rand (sounds like a bad law firm?), they'd be happy that the opportunity cost (buying Treasuries instead) of building new real capital was so unprofitable. Low government interest rates, which are determined at auction by the way, should be the life-blood of a True Capitalist.

I guess not.