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It's very simple: People are still willing to lend money to the US government at very low rates because the other areas for investment (i.e. the stock market) a
by d2viant 16y ago
It's very simple: People are still willing to lend money to the US government at very low rates because the other areas for investment (i.e. the stock market) are viewed as too risky.
Additional government stimulus has little to do with it at this point, that will only come into play when inflation actually hits. When things change and people become more tolerant of risk and less tolerant of low returns, all the government deficits that have been accumulated will become a huge issue. When lenders to the US government start demanding 5%+ on their money, the interest payments on our debt will skyrocket.