I’ve been waiting for the Fed to raise interest rates for awhile now, but you say they’re not going to raise rates by any more than a marginal amount. Why is this and what can I invest in instead?

They just can’t. Raising interest rates means raising their interest rate payments. They implemented a zero interest rate policy (ZERP) because they can’t afford this additional burden. Raising rates back to historical norms of 5% would occupy a third of the U.S. budget — about $1 trillion. Raising them even 1% is an annual expenditure of $176 million, and they’re talking about getting rates back to 2% by the end of 2015. When you look at this in conjunction with our national debt — $17.6 trillion, and about $130 trillion in unfunded liabilities and future payments — suddenly the idea of raising rates by any significant degree seems not only impractical, but impossible. There are still opportunities to generate income — particularly through owning dividend-paying stocks and a strategy known as put selling — which one of our editors, Chad Shoop, reveals in his service Pure Income.