My brain is racing. I have too much on my mind. Money, money, money. No, not my own money, which I spend so fast it’s like a fast breeder reactor. Except that those reactors somehow make more fuel and I don’t. Well, that metaphor won’t work. Let’s try another. No, not my money, which is my usual shame because my mother would die if she saw how fast I spent it, like a drunken sailor coming off a nuclear submarine. (There is that nuclear analogy.) But the nation’s money. That’s what I am worried about.
The Fed Chair, Dr. Yellen, has advised that she plans to see the short term Fed borrowing rate rise from .25 percent to 2.5 percent within about two years. This would mark the end of a fantastically long period of the Fed keeping interest rates at essentially zero.
My mind goes back to the great economist, Edward F. Denison, of the Committee for Economic Development. Dr. Denison wisely told my Pop that if an interest rate goes from one percent to two percent, that’s not a rise of one percent. That’s a rise of 100%.