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March 2011

Fiscal Plight of the U.S.

Simple math is often revealing.  That is why what follows is so scary.  It’s about the debt of the U.S. and the near impossibility to fix the federal budget almost no matter what steps are taken today.  Unfortunately, even the difficult steps that must be taken, and that are being avoided by the political process, won’t solve the basic issue. Let’s first look at the level of debt in the …Read More

The Bond Bubble – Sources of Pressures on U.S. Interest Rates

The conventional wisdom is that, after nearly 30 years of decline, U.S. interest rates have nowhere to go but up, and rising interest rates are bad news for bondholders, especially those who hold longer term maturities.  (As rates rise, bond prices fall with the severity of the fall directly related to time to maturity.)  This blog outlines existing upward and downward pressures on bond rates and outlines emerging issues which …Read More