To quote Dean Martin, “Ain’t that a kick in the head.”
Real interest rates (nominal interest rates less the inflation rate) are more negative than anytime since 1975.
The REAL effective Fed Funds rate (on the short end) is the lowest since 1975.
The real 10-year Treasury Note yield is also the lowest since 1975.
1975 is notable for a high inflation rate and President Gerald Ford’s infamous song (penned by The Music Man’s Meredith Wilson) “Whip inflation now!”
Win! Win! Win!
We’ll win together,
Win together, That’s, the true American way, today.
Who needs inflation?
Not this nation.
Who’s going to pass it by?
You are, and so am I
If you can win, so can I.
It is no longer on the internet, but there used to be a video of Meredith Willson plunking this tune on a piano. A truly embarrassing moment.