WIth $37 billion in cash currently they are bleeding money with negative real interest rates. It doesn't make much sense that Google is worried about inflation

WIth $37 billion in cash currently they are bleeding money with negative real interest rates. It doesn't make much sense that Google is worried about inflation here. Also, consider that Google has about $17 billion in cash overseas to avoid US taxes and may not be able to deploy the full amount of funds at home. Google may be altering their capital structure to include more debt which will do a few things, 1) lower to firms cost of funds and allow it to better operate in a lower interest rate environment. 2) Debt offers firms a tax shield, by putting out some debt,Google can lower its effective tax rate. With interest rates at historic lows it makes sense to borrow as much as you can. We have negative real interest rates currently. If you borrow at a big economy like Google, paying back the debt will be much easier in this environment and the lenders stand to loose on a purchasing power basis.