The absurdity of it all

A stream-of-consciousness-like rebuttal to the “Weimar”-criers and austerity terrorists:

“This morning, fully four years into our crisis, and many many months into the printing of money and run-up in borrowing, the US Treasury went to the well once more. It borrowed $21 billion worth of ten year debt. Was it punished? Was the rest punitive? Were creditors vexed, concerned, worried silly, or otherwise upset over the government’s need to issue more debt? Nope. On the contrary. The rate was a record low. A smidgeon below 1.5%. Yes, read that again. The US can borrow at 1.5%. Given that inflation is above 2.0%, this means people are parking their cash with the US and are willing to lose. In effect they are paying us to take their money. Not only this, but for every dollar issued this morning we could have sold 3.5 as much. The deal was oversubscribed. Heavily oversubscribed. And the crisis? The apocalypse? Nowhere to be found.”

 Real World Economic Review — The Absurdity of it all

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This entry was posted in austerity, deficit spending, economic policy, hyperinflation. Bookmark the permalink.

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