On Oct 15, 2011, at 2:51 PM, Carrol Cox wrote:
> A query. State Farm has attacked the low interest rate policy of the Fed on the grounds that it would force Life Insurance companies into riskier investment in order to get the return they need to make good their obligations to policy holders. Could you comment on this.
That's probably true, but on balance, low interest rates are essential now to avoid a deflationary collapse. It might not work, but it's certain that higher interest rates would provoke one.
Doug