20 October 2009

Blame China For Low U.S. Interest Rates.

HUFFINGTON POST/DEAN BAKER
Are you sick and tired of your bank's miserable CD rates?
Yesterday, JP Morgan/Chase was still offering a 24-month CD...for 2% APY!
Remember money market accounts. Forget them!
Is it all the Fed's fault? Much of the blame belongs to...China.

Economist Dean Baker explains that "we absolutely do not need the Chinese government to keep buying U.S. debt and would almost certainly be better off if it stopped tomorrow. Citigroup and the other big banks do need the Chinese government to keep the money flowing if they are to have a chance of getting back on their feet."