Right-Wing Claims That the Bond Market Is Crazy and Doesn't Understand the Seriousness of the U.S. Debt: For the Virtual Green Room
Francisco Franco Is Still Dead. Quite Possibly Jiang Zemin as Well

Right-Wing Claims That QE II Was Masking the Unpleasant "Real" Financial Market Equilibrium: For the Virtual Green Room

Rebutted by Paul Krugman:

World, Not Ended: QE2 — “quantitative easing 2″, the Fed’s program of buying long-term bonds — ended last week. For a program that arguably did very little, QE2 attracted an amazing amount of vitriol. On one side, it was accused of fomenting “currency wars”, driving up inflation and/or exchange rates in developing countries. On the other, it was claimed that the program was masking the true effects of the US budget deficit, and that interest rates would soar after it ended....

Strange to say, the world as we knew it has not ended.... As of this morning, the 10-year rate was 3.09%. And Brazil’s real is still hitting records.

Needless to say, nobody will ever admit that they were wrong.

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