patrick.net

http://www.talkmarkets.com/content/bonds/economic-theory-is-dead-new-normal-means-no-recovery?post=108622&uid=4798

This Keynesian statement is no longer valid:

"When interest rates are low, the opportunity cost of holding money is low, and the expectation is that rates will rise, decreasing the price of bonds. So people hold larger money balances when rates are low. Overall, then, money demand and interest rates are inversely related."

Now, bonds are being hoarded, when rates are LOW! This destroys monetary theory, and in the New Normal, the economy cannot grow under those circumstances.