As of today, the Federal government can borrow money for 10 years for FREE. Why don’t we?

How extraordinary. The “real” interest rate on the 10 year bond is precisely zero. The nominal rate is slightly over 2%, precisely matching inflation. In other words, the market believes the probability that the U.S. will default on its long-term debt is zero. No chance at all. Zilch.

Here’s Professor Brad DeLong:

10-Year Real Treasury Rate at Zero

Daily Treasury Real Yield Curve Rates

Time for everybody who has publicly worried about “crowding out” or about the deficit raising U.S. interest rates to make their Apology to the Emperor, and be quiet for llife.


About Guy N. Texas

Guy N. Texas is the pen name of a lawyer living in Dallas, who is now a liberal. He was once conservative, but this word has so morphed in meaning that he can no longer call himself that in good conscience. Guy has no political aspirations. He speaks only for himself.
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