Trillions added to our national debt; can’t let interest rates return to natural rate—ever. @DavidBahnsen
David Bahnsen, CIO, Bahnsen Group, in re: The Fed will “do whatever it takes” to . . . stabilize the economy. Same as what he’s been saying. A put option/safety valve for risk. Keep interest rates at zero till 2022. After 2017, ’twas almost 2017 before they raised interest rates. You can’t just unwind; a society grows addicted to low interest rates. Problem is we added several trillions to our national debt; thus cannot let interest rates return to natural interest rate—ever. Case in point: Japan for the last 30 years. Academic economists make mistakes all the time; that’s all right except they pretend they're infallible. The May jobs number was about employees’s being laid off, not fired; academic economists were wrong. The PPP program has been underrated for its efficacy. My guess is that we’ll have less unemployment than 9.5%.