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View Diary: Paul Krugman: "Cheating Our Children" (51 comments)

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  •  "Interest rates remain stubbornly low" (1+ / 0-)
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    The Federal Reserve is buying about $80 billion/month of federal debt and housing agency debt.

    The Federal Reserve doesn't have to give a rat's ass about the interest rates paid to it because the Federal Reserve gets to create money.

    The federal government can do what it wants with interest rates.

    However, the federal government can't force foreigners to continue to accept dollars for payment for Chinese made goodies and foreign oil for American-driven SUVs.

    Saddam refused to accept dollars for oil until he was removed by American military power.

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