The Great Unrotation In US GDP

While most argue that the Fed has its foot on the throat of the bond market – and thus they do not reflect ‘economic reality’, it is hard to argue with the following chart of 30 years of Fed-intervened rates markets and the consequent GDP growth. Hope remains high for 2013 and beyond yet as very recent macro data shows, things are not going quite according to the economists’ linear extrapolations. Maybe bonds do know something after all?



Chart: Citi


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