As the situation in Europe deteriorates, global investors are fleeing to the dollar and to the safety of U.S. Treasurys -- the debt instruments of our federal government. With so much demand for Treasurys, our government is able to borrow money and pay virtually nothing in the way of interest. Today, if you buy a 10-year Treasury note, you will receive a little over 1.5 percent a year in interest, which is less than the rate of inflation.
The fact that our government can borrow money on such generous terms has some profound public policy implications. It means that in the short to medium term, Americans don't face the austerity measures that are being forced on the Greeks and the Irish. It means that our government can continue to incur enormous deficits. We are going to get enough rope to hang ourselves.
3 hours ago.
The US should not be able to borrow money on such generous terms. It is bs. Why are the Greeks suffering but not Americans? Its bs. America has no right to the reserve. They are ripping us all off.