You really don’t understand what is going on do you?? We are a net debtor nation who is dependant on influx of foreign credit to fund the deficit spending. Bernanke doesn’t really control the interest rates, at least not directly. He can only influence them. Ultimately, it is the market for debt that will control them in the long term and their appetite for risk and a weak currency policy that pays them back in weaker dollars.
I guess I need my eyes checked. I could have sworn that rates were higher last year and FFR were over 300 points higher. Man, I really don’t understand what it means when the fed lower FFR by over 300 points. I guess the discount rate they control have no meaning either, silly me.
If you think that the fed under the control of BB will raise rate in the face of recession/depression, then the last several months must have been a dream.
