The Mandibles: A Family, 2029–2047. Lionel Shriver

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      “In that I don’t know what you’re referring to, probably not.”

      “The bond auction this afternoon.”

      “This is France again?”

      “No, US Treasury. Look, I don’t think it’s a big deal. But the bid-to-cover ratio was weirdly poor. Roachbar, in fact: 1.1. And the yield on a ten-year note went to 8.2 percent.”

      “That sounds high.”

      “High? It doubled. Still, all I see is an accidental confluence of arbitrary forces.”

      “Karmic clumping.”

      “Yeah. You’ve got France unable to completely roll over a tranche of maturing debt—but Germany and the ECB swept in right away, so it’s not as if they’re about to close the Eiffel Tower for lack of funds. Messed with some heads, that’s all. As for Barclay’s in the UK, the official word is that Ed Balls’s government can’t bail them out this time, but that’s a strategic pose. I bet they find enough ten-P pieces tucked into the crevices of Downing Street sofas to keep the bank from going to the wall. Then yesterday a couple of skittish hedge funds in Zurich and Brussels reduced their dollar positions to basically zero and moved into gold. Let them. They’ll be using shiny rocks for paperweights when gold drops right back down.”

      “It’s up?”

      “For now! You know gold. It’s always ping-ponging all over the place. Unless you’re really canny about playing the highs and lows, it’s a ludicrous investment.”

      “Why do I get the nagging impression that you’re not having this conversation with me? You keep arguing, one hand clapping. I’m not arguing back.”

      “Sorry. I did get into an argument, with that boomerpoop Vandermire. Because, okay, the bond auction today, it’s—unfortunate. At the moment, foreign demand for US debt is low—but there are completely unrelated reasons for backing off US debt instruments in a variety of different countries that just happen to be coinciding. Here, the market is hopping; investors can find higher yields in the Dow than in dumpy Treasury securities. Interest rates aren’t likely to stay anywhere near 8.2 percent and this is probably a one-time spike. Jesus, in the 1980s, Treasury bond interest careened to over 15 percent. Bonds paid over 8 percent as recently as 1991—”

      “That’s not very recent.”

      “My point is, there’s no reason to get hysterical!”

      “Then don’t say that hysterically.”

      “It’s the panic over the interest-rate spike that’s the problem. Imbeciles like Vandermire—oh, and guess where he was headed when I ran into him in the department? MSNBC. He’d lined up back-to-back interviews on all the main stations—Fox, Asia Central, RT, LatAmerica …”

      “You jealous?”

      “Hell, no. Those shows are a pain in the butt. With hyper-res, they slather on the makeup an inch thick. They can’t wipe it off completely, and it stains our pillowcases. Besides, you never know whether under pressure you’ll misremember a statistic and never live it down.”

      “But you’re great at it.”

      His posture straightened on the sofa: compliment received. “The fear Vandermire will have peddled all night—it becomes self-fulfilling. Though he hardly sounds afraid. He’s having the time of his life. It’s like what you always say, right? This apocalyptic set—”

      “I don’t ‘always’ say anything. We had that one conversation—”

      “Don’t get your back up when I’m trying to agree with you. It’s just, these people forecasting the end of the world, they never seem upset by the prospect, do they? Invoking ruin, heartache, and devastation, they can barely disguise their delight. What do they think actual collapse is like, a kid’s birthday party where everyone dances in a circle singing, ‘Ashes! Ashes! We all fall down’? And they seem to assume that they themselves will be immune, sunning by the pool while cities burn on the horizon. They’re would-be voyeurs. They regard the fate of millions if not billions of real people as entertainment.”

      Lowell had that look on his face of wanting to write that down.

      “Florence and I are worried that Jarred’s going down a similar route. I think he’s more into eco-horror, but same idea. Although to be fair I’d hardly characterize Jarred as delighted. He’s been pretty morose.”

      “Well, Vandermire is ecstatic. He loves the attention, and he’s on a high of having been supposedly right all along. ‘Unsustainable! The national debt is unsustainable!’ If I heard him say the word unsustainable one more time this afternoon I’d have punched him in the nose. The functional definition of unsustainable is that-which-is-not-sustained. If you can’t keep something up, you don’t. After all that noise twenty years ago about the deficit, the melodramatic shutdowns of government over raising the debt ceiling, and what’s happened? Nothing. At 180 percent of GDP—which Japan proved was entirely doable—the debt has been sustained. It is therefore, ipso facto, sustainable.”

      “Don’t let Vandermire get to you, then. If he’s off the beam, he’ll soon look as dumb as you think he is.”

      “His sort of loose, inflammatory talk is dangerous. It undermines confidence.”

      “Confidence, shmonfidence. What’s it matter if a few rich investors get edgy?”

      “Money is emotional,” Lowell pronounced. “Because all value is subjective, money is worth what people feel it’s worth. They accept it in exchange for goods and services because they have faith in it. Economics is closer to religion than science. Without millions of individual citizens believing in a currency, money is colored paper. Likewise, creditors have to believe that if they extend a loan to the US government they’ll get their money back or they don’t make the loan in the first place. So confidence isn’t a side issue. It’s the only issue.”

      The trouble with being a professor is that when you pontificate for a living it’s hard to cut the crap once you get back home. Avery was used to it, though she didn’t find Lowell’s rants quite as enchanting as when they first got married.

      “You know, most of the other doom mongers like Vandermire are also gold bugs,” Lowell resumed. “Honestly, hanging on to a decorative metal as the answer to all our prayers, it’s medieval—”

      “Don’t start.”

      “I’m not starting. But I don’t know why Georgetown hired that jackass. He’s meant to be a token of the faculty’s ideological ‘breadth,’ but that’s like claiming, ‘We have academic breadth because some of our professors are smart and the others are nitwits.’ The gold standard was put to rest sixty years ago, and nobody’s missed it. It was clunky, it constrained the tools available to central banks to fine-tune the economy, and it artificially limited the monetary base. It’s antiquated, superstitious, and sentimental. What the gold bugs never concede? Now that the metal has almost no real utility in and of itself, it’s therefore just as artificial a store of value as fiat currencies, or cowrie shells.”

      Avery studied her husband. Maybe he’d refrained from turning on the news because he was afraid of encountering his bête noire Mark Vandermire. Or maybe СКАЧАТЬ