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Economics

The Sorrow and the Pity of Another Liquidity Trap: Brad DeLong

July 5 (Bloomberg) -- There is only one real law of economics: the law of supply and demand. If the quantity supplied goes up, the price goes down.

Back in the third quarter of 2008, the public held about $5.3 trillion of U.S. Treasury bills, notes and bonds. As the recession hit, tax revenue plummeted, and government spending rose, that total reached $9.4 trillion by mid-2011.