The Atlantic : If Our Debt Is So Dangerous, Why Are People Begging for More? - By Jordan Weissmann - Treasury yields are actually negative for five, seven, and ten-year bonds. In other words, investors are essentially paying the government to take their money

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These dynamics will not be around in perpetuity :

The Republican Politics and Policies of not letting the U. S. Government borrow money from Investors is Absurd and against Jobs Creation.

"It's an ideal time to borrow and spend to put Americans back to work, while passing a deficit reduction bill that takes effect in a couple years".

"All year long, investors have been desperate to buy U.S. debt. We should let them before it's too late".

The Atlantic
If Our Debt Is So Dangerous, Why Are People Begging for More?
By Jordan Weissmann
December 27 2011


If Our Debt Is So Dangerous, Why Are People Begging for More?

Some excerpts :

How cheap? According to Bloomberg, during an auction of short-term bonds last week, the Treasury received nine-times as many bids as it needed to sell off all its $30 billion worth of debt. The interest rate it offered: 0%.

Let me repeat that: The U.S. government can sell its debt without paying any interest at all. Zilch.

At Wonkblog, Ezra Klein says there's an obvious policy response in this situation: borrow more. He points out that once inflation is taken into account, Treasury yields are actually negative for five, seven, and ten-year bonds. In other words, investors are essentially paying the government to take their money. It's an ideal time to borrow and spend to put Americans back to work, while passing a deficit reduction bill that takes effect in a couple years.

And it's not clear the government will have a chance like this again any time in the near future. Treasuries have been buoyed by two powerful, but temporary, forces. First, Europe tumbled into crisis, which left U.S. government debt was as one of the last safe investments on the market.

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