Let's let James Galbraith answer that: What is the nature of the danger? The only possible answer is that this larger deficit would cause a rise in the interes

Let's let James Galbraith answer that: What is the nature of the danger? The only possible answer is that this larger deficit would cause a rise in the interest rate. Well, if the markets thought that was a serious risk, the rate on 20-year treasury bonds wouldn't be 4 percent and change now. If the markets thought that the interest rate would be forced up by funding difficulties 10 year from now, it would show up in the 20-year rate. That rate has actually been coming down in the wake of the European crisis. If there's a better place to keep wealth than US Treasury securities, nobody seems to know what it is.