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There's another way of looking at it. Debt can be an investment. Compare the rates of inflation vs. the interest rates on bonds. Please let me know if I'm wrong
by error_logic 11y ago
There's another way of looking at it. Debt can be an investment. Compare the rates of inflation vs. the interest rates on bonds. Please let me know if I'm wrong, but... isn't the government making money with them at this point?
- logfromblammo 11y agoToday, maybe. Don't presume that the government is necessarily using the sale of lower-interest bonds to pay off the principal on its higher-interest debts. https://www.washingtonpost.com/news/wonk/wp/2013/03/05/john-cochrane-thinks-treasury-can-get-a-free-lunch-treasury-disagrees/ https://www.washingtonpost.com/news/wonk/wp/2013/03/05/john-... As long as the principal on the bond cannot be repaid out of actual revenues, every bond you sell at a negative yield is one that may have to be refinanced at a positive yield later.