Sure, there's a slight uptick in borrowing cost, but that's going to be very small. Other than that...?
Read the end when I put forward new suggestions on aggregate demand control. That is the reason I wrote the book because I knew there would be a liquidity trap. The only think tank that was interested at the time was a Eurosceptic so I had to spin it around that. In the end I published it myself because the other think tank that became interested wanted me to change it too much. You will like the end. I think. I have a lot more. That is just a few ideas and suggests some limitations to the paths taken so far. Like QE and interest changes.
Well any amount on two and an half trillion is scary. But when countries get downgraded it happens more than once. It is the start of a downward path.
There was going to be a Fed meeting on Tuesday, no? I am too young to know, but does Fed go about changing dates of meetings and announcements in times of crises?
Well our external debt is 6x what Japan has. We already saw what a few small nations like Greek did to the European Union, and how that affected the world.
There are so many financial models that will have to be reprogrammed now. The assumption that treasuries are the safe haven of havens will soon be impossible to maintain even for the dim of dim witted. All the asset swaps and what nots used in repoes etc... Treasury colleteral... what a mess...
That's more what I'm asking about, Frost. There are a ton of buried assumptions re: Us treasury debt worthiness. Are we now going to see mass transfer to eg Canadian and Australian sovereign debt? Those countries don't have anywhere near enough debt outstanding to cover a flodd of demand like that. What a mess...
http://www.federalreserve.gov/newsevents/press/bcreg/20110805a.htm I guess this clears up some of the mess for the moment. Treasury and other us agency assets will still be good for now.