Wayne,
1. Then I must confess I do not get what your point was in the initial post and would appreciate further explanations.
2. Wayne, from one engineer to another, if tuning your database makes your queries just as fast as tuning and praying, isn't praying superfluous? Bond yields are derived of future growth prospects. Focus on the thing that matters, real (as in inflation-adjusted) growth. You didn't say that growth doesn't matter, but you did say that it is one of the several factors, bond yields being another. That is superfluous, my friend. Adjusted for risk, junk bonds are just as attractive as blue chip ones. The market takes care of that.
As for doemstic savings and trade deficits, these are yet to be understood phenomena. I have combed through the academic literature of the 1980's and found that none could foresee the situation in the 1990's and there was no conclusive evidence that trade deficits have specific effects on the economy - positive or negative. Of course, popular economists are sure that trade deficits are bad, period. ;-)
3. Whatever. Central Banks often work with each other to reach policy goals. That is usually stated in their statement of direction. Nothing new there and hasn't been for centuries. Why is this a big deal?
-BGR. |
