"..... inflation is probably the most important single factor in that vicious circle wherein one kind of government action makes more and more government control necessary. For this reason all those who wish to stop the drift toward increasing government control should concentrate their effort on monetary policy."
F.A. Hayek - The Constitution of Liberty (pages 338-339)
On July 11, 2011, Doug Short put treasury yields into perspective (that is, yields that have been affected by the zero interest rate policy of the Fed) and summarized:
"A week after the end of QE2, the yield on the 10-year note has dropped 15 basis points to 3.03%. The most recent Consumer Price Index (the June reading for May) stands at 3.57%, which gives us a real 10-year yield of -0.54%."