The use of the Fed to peg nominal interest rates at artificially low levels, fine tune the yield curve, incentivize risk taking, monetize government debt, and inflate selected asset prices by allocating credit are deviations from sound money and free markets.

FORBES: The Fed's Incredible Rate Forecasting Hubris

So much for the idea of a flattening yield curve bringing investors to the risk table.

FORBES: Barclays Sees Global Econ Heading On "Treacherous Path"

If we prefer to have our central bank do our defaulting on our behalf, then eventually inflation risk premiums will reveal themselves throughout the yield curve.

FORBES: Why Interest Rates Tell Lies About Inflation, Growth And Just About Everything Else

Some intermediate funds extend maturities well past the intermediate part of the yield curve to time the market or boost returns, adding market risk.

FORBES: Put Intermediate Muni Funds In Your Portfolio's Rotation

Normally the yield curve is positive because investors demand higher yields to compensate for the risk that inflation might pick up.

ECONOMIST: Bond bombshell

As the muni yield curve steepens investors will start interpreting that steepening as a reflection of increased risk.

FORBES: Move Over Treasuries, Muni Bonds Are The New Bellwether

Armour take on no credit risk, but rising interest rates from the Federal Reserve or a flatter yield curve will pressure earnings and dividends.

FORBES: 5 Monthly Paying Dividend Stocks With Attractive Yields

For now, the historical euro risk-averse sanctuary remains at the very short-end of the German yield curve.

FORBES: Eurozone Depositors Can Run But Where Will the EURO Hide?

Pegging the federal funds rate close to zero for another three years and twisting the yield curve to lower longer-term rates will continue to misprice credit, penalize saving, and encourage risk.

FORBES: The Limits Of Monetary Policy Call For Moral, Sound Money