Great post from Joe Weisenthal at Business Insider: "The Most Ridiculous Thing You Will Read About Interest Rates Today" (via Credit Writedowns). Here are key points he makes, but read the whole post.
It's the period when the Fed HASN'T been buying Treasuries, that rates have fallen. It's this error made by McKinnon that was also made by bond guru Bill Gross, causing him to perform so badly this year.
In other words, just like with that long-term chart we showed earlier, larger deficits have been associated with lower interest rates, both over a 30-year time frame, and also just in the cycles during Bush.
Another read for today is "How Big Is the Long-Term Debt Problem?" by James Kwak at Baseline Scenario.