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Stimulus Spending doesn’t crash bond market

Peter Prime, 12 political pundit, political sci graduate of Drexel university (Paul Krugman Proven Right on Stimulus Bill and Anti-Austerity Theories; http://www.policymic.com/articles/8616/paul-krugman-proven-right-on-stimulus-bill-and-anti-austerity-theories)

 

Many economists argue that a stimulus would be the surefire way to ensure that the economy would regain its footing. Paul Krugman was an early and prominent advocate for a stimulus. He forcefully argued for a big stimulus. Other economists, particularly those of the conservative persuasion, criticized the idea of a big stimulus because they said that it would lead to inflation, hinder rather than facilitate economic recovery, and would spook the bond market, thereby making it more expensive for the U.S. to borrow money. They favored austerity as the best remedy for the ailing economy. Three years later, the verdict is in: Krugman, the Nobel Prize-winning economist, has been vindicated and the critics of the stimulus have been wronged, as none of their predictions had come to fruition

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First, the Federal Reserve has flooded the economy with stimulus — no disad to Fed action or stimulus is unique. 
Thimons 11/1 — Josh Thimons, Executive Vice President and Portfolio Manager focusing on interest rate derivatives in the Newport Beach office of PIMCO—one of the world’s largest investment firms, former managing director for the Royal Bank of Scotland, holds an MBA from the Wharton School of the University of Pennsylvania, 2012 (“What Happens at the Fed Under a Romney Presidency?,†Institutional Investor, November 1st, Available Online at http://www.institutionalinvestor.com/Article/3111896/What-Happens-at-the-Fed-Under-a-Romney-Presidency.html?ArticleId=3111896&p=1, Accessed 11-05-2012)
Regardless of the election outcome, … the next Fed chairman extremely consequential.

Second, the Fed’s bond-buying is unprecedented and will continue indefinitely. 
Reuters 1/30 — Reuters, 2013 (“Fed keeps stimulus in place as U.S. economy "paused",†Byline Alister Bull and Pedro da Costa, January 30th, Available Online at http://articles.chicagotribune.com/2013-01-30/business/sns-rt-us-usa-fedbre90t0tf-20130130_1_dual-mandate-policy-accommodation-monetary-policy, Accessed 02-04-2013)
The Federal Reserve on Wednesday left in place its monthly … keeping it on track for further bond buying.

 

 

Those are just off the wiki. I'd use them to prove how non-unique the DA is 

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There was a debate on the wiki that had the first card.

 

Also, jobs turn.

 

I would invest in finding some econ down now....so your turns are unique.

 

There is a book coming out called the Coming Bond Collapse.  There is probably an answer in there:

http://moneymorning.com/2013/05/03/bond-market-crash-will-strike-by-2016-expert-predicts/

 

Probably has evidence both ways.

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Its public spending--generally spending by the federal government.  I believe its something based on perhaps increasing interest rates--due to increased borrowing.  Not entirely sure.

 

Or its perception of spending = perception the risk of interest rate increase.  Its a perception based DA for sure.  Most are--perhaps save an on budget tradeoff.  Even then, there

are components which are perception based.

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