Sunday, June 5, 2011

Debt Problem?

Suppose you could borrow money for ten years at a real interest rate of less than one percent? Even better, suppose you could borrow money for five years at an interest rate of less than zero? In other words, someone will pay you for you to borrow their money?

You'd probably think about borrowing that money and investing it in measures to improve your future wealth.

Strange as it seems, the US Treasury's real interest rate paid on inflation-protected securities is less than one percent for ten years and less than zero percent for five years. So why not borrow more at those rates and use the funds to stimulate jobs and reinvigorate the economy?

Ask the Republicans.

Is this what they mean by running the government like a business?

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