Charles examines the disconnect between Treasury bond rates and GDP growth and points his finger at the Fed. And guess what, he says, the US budget deficit isn't really contracting.

"If negative, the difference between long bond rates and the economic growth rate is effectively a subsidy paid by the saver to the government. In short, this difference measures the amount of financial repression taking place in an economy. The fact that it is not paid to the Treasury does not mean it doesn't exist. It is a tax paid by a nation’s savers—e.g., pensioners in Peoria."