Wednesday, March 9, 2011

We're not "broke" - Index of investor confidence in the US Treasury

Krugman: Investors, putting real money on the line, are willing to lend funds to the Feds long-term at an inflation-adjusted interest rate of only 1 percent. There is nothing in the markets or the cash flow requiring immediate austerity. Yes, there is a long-run problem* — but this requires long-run solutions.    (Go HERE for the 10-year index of interest rates on US Treasury securities - currently 1%, and about 3% at the height of the recession.)

*On both the federal and private market horizons, the "long-run problem" is primarily rising health care costs that drastically exceed & outpace every other industrialized country that has a modern, high-quality health care system AND universal coverage. Just saying...

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