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The -- the price where they go from here.
Here to weigh in as a man who knows everything about the treasury market Robert Kessler CEO of the investment arm the caps for companies here privacy as always.
Since you noted in we have a chart of this that the yield on the ten year treasury for a period of about 35 years from the mid twenties -- into the late sixties.
With under 4% it was too and even two and a half three at some point you can take a look at that -- highlighted part.
Why would move yields so low then and do you think that's what -- -- in store for for years to come here now.
There there are certain comparisons that are kind of interest you we're so used to talking about that prior.
35 years where we had this inflationary spiral and then we had rates coming down.
But during that period of time after that depression especially.
Where you had very high unemployment.
And wages coming down.
You had a lot of excess capacity there are similarities to today so it's kind of silly to look at the treasury and think -- -- never be in the air.
Or this is too high.
The fact of the matter is that treasury hit 17.
As -- yield.
For a long period of time so low interest rates are nothing new for this country and periods of time.
Have been there for a long period of time as well.
That's interesting -- bring that chart back up please because you know again and and I and I like your perspective on this because if you brought up we -- -- a thirty year chart right we might and so we bring up a thirty year chart.
And we today we could say without honesty.
That and I wanted to make up the number but to get the point then you know that the -- interest rate over thirty years been 6%.
And we're three and a half but we're gonna revert to the mean and we've got so in other -- rates are gonna climb.
Spent time now but with -- whatever it is hundred year chart looks a little different well and -- mean -- -- -- a first a look at.
-- not exactly but first -- the deflation.
Has been much more prevalent in this country than inflation believe it -- not I -- -- free enterprise capitalistic country so competition.
Kinda competition is.
Something that we level it.
And now you have a whole global marketplace.
With a tremendous amount of excess capacity.
The first thing people say is we're kind of in a bubble in the treasury market.
Something which truly isn't true because in -- in the treasury market you couldn't go down but you really can only go down to about.
Zero so which is pretty much where we're looking at.
Is the difference though between the period we were looking out on the chart and today is back then were investors and Americans more risk of -- And were they willing to -- their money into treasuries went today.
Are we going to have the willingness to suck up the supply of treasuries that are coming down -- The United States American consumers have been good -- Up until the ninety's we were always saving and close to double digit numbers.
Into the ninety's that include housing and -- and and that includes house because that's the big enough we -- we never saved outside of our home -- look we don't have any real cash.
We got a house.
We have and we and we have houses now in fact we encourage people to buy even more houses.
But the fact of the matter is savings are part of the heritage of the United States and savings mean investment in the end.
So as you see savings increasing.
That deficit that we're so concerned about that one point 401 point whatever it may be.
Should be covered in terms of treasury purchases.
By the American people as it's covered by the Japanese people that being the case then a lot of these hold discussions go away.
And the price of the treasury stays low in -- because in fact will be funding it ourselves.
Patent and not a difficult thing to -- -- by the way.
Roberts good thing thank you thank you so much and -- Robert Kessler.
The -- the companies with comeback as you fly back must put in effect that I haven't been.
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