FSD, I’d say there’s a good chance that rates will be higher in ’10-’11. We’ll be in the middle of a depression, but with our big socialist state, interventionalist political class, whining Baby Boomers, etc., on top of our huge debt, the Feds will have to pay top dollar (interest rates) to get more suckers to buy T-bills/notes/bonds to finance government ‘services.’
This depression will be different from the depression of the ’30s, given that governments have already borrowed to the hilt. This feels more like a collapse of the dollar depression, not the ‘nobody wants to spend their few gold-backed dollars depression.’
