The solar industry is dead in Nevada, and Solar City moved out. Nevada Power refuses to subsidize solar anymore.

We can't afford to fix our infrastructure with growth this slow. I think the Fed could finance it through base money, though.

I agree with 2 in that there is massive demand for bonds. Mises just doesn't get that this demand exists. In fact, there is no doubt too much demand for long bonds.

But as to number 1, there is so much US debt as collateral these days that if the government went to short term instruments only, the collateral of treasury long bonds would soar so much in price that it could cause problems for derivatives clearinghouses. Also, the Fed may not be able to raise rates in an inflationary scenario, or at least not be able to raise IOR in an inflationary scenario. Fed researcher, Christopher Phelan says that could result in a massive run on the Fed and thinking about it, it could cause government debt payments to soar as well.

Goldman's top line net earnings dropped 59 percent.

The Fed must stop forcing the government to borrow its own money. The Fed must start financing real economy infrastructure through base money, interest free. It could easily be done.

Unfortunately, the Fed cannot use just base money unless bonds could be banned as collateral for derivatives trades. US treasury bonds have become gold when used as collateral. But that process is hurting main street badly. It creates some wealth, but not for workers. The Fed will always force the government to borrow most of its money. I would just like to see infrastructure paid for by money not borrowed.

The financial system asks, why do you need gold when you can turn debt into gold? Schiff has never answered that. Gold as collateral is a big source of wealth creation, the financial system says.

Peter was right about the housing bubble in 2006. But many of us knew about it in 2005. Peter has been a gold bull but demand for treasuries has only increased as time goes on. Treasuries are the new gold. Yes, gold can now be considered top tier collateral but the gold market is huge. Treasuries are getting more and more scarce, yet they are allowed by the central banking system to be used as collateral in the derivatives markets.

So far, Peter has said some things that people don't want to refute because they are not certain he isn't right. But it has been a long time since he has been right.

Negative interest rates are potentially a disaster for many parts of the economy. But we have been saying that for quite awhile.

Yes, the Fed blew it in 2008, making the housing crash into a full fledged near depression. None of us like the Fed.

But it isn't part of the money supply. It is base money. Inflation would have to be monitored, but we hardly have that now. The Fed could finally do something for the nation without the treasury paying out interest to get all this fixed. Hasn't the Fed taken enough in the protection of the banks? Isn't it possible it could give back? How about a infrastructure wealth fund of base money that would have to be deposited back into the banking system at some designated date?

Perhaps a close up student of the Fed could comment on this Moon.

I don't think long bonds will react much to little rate hikes. The demand for long bonds is insatiable.

After listening to Donald Trump for all these months after you posted this article, I long for Paris Hilton, Mark.