Zero Hedge reports:
What is wrong with this picture: the MTS just announced that the February budget deficit was $220.9 billion, after receipts of just $107.5 billion with vastly surpassed by outlays of $328.4 billion. This is a record. Yet the interest on the public debt was a mere $16.9 billion (page 13 of the MTS report). The reason for this is because as TreasuryDirect points out, in February the interest on public marketable debt (actual cash outlays), which as of Monday stood at $8.061 trillion, hit an all time low of 2.548%. How is it possible that unprecedented debt accumulation can result in ever declining interest rates, and Treasury auctions, such as today’s 10 Year reopening, in which the Bid To Cover hit an all time high?
One answer: The Federal Reserve, which through complete domination of the entire capital market courtesy of ZIRP and QE has now turned market logic upside down by 180 degrees. In a normal world, the more money you borrow, the greater the associated risk, and the greater the interest payments on this debt. Not in America though. So can we assume that the Fed can forever keep rates on debt at record low levels? No. Which begs the question: what happens when interest rates do finally start going up?
Its clear that Lord God Bernanke has everything under control. In the world of Keynesian Economics, up means down, left means right, and war equals peace.
Without the Christ Savior Bernanke to guide our interest rates and manipulate the supply of fraudulent fiat ponzi currency, we would all be living like Mad Max beyond thunderdome.
Its clear that I would have a metal beast 1980s armored mustang convertible with a heavy machine gun mounted on a turret, being forced to spend my days shooting women and children for their oil and food.
We wouldn’t want that would we?
Of course not.
So lets get back to reality here and start talking about how all that money the Lord has created for us will benefit society.