"Free Money" by Paul Krugman at the NY Times

Free Money

by Paul Krugman at the NY Times

http://krugman.blogs.nytimes.com/2012/07/23/free-money-2/

"SNIP.....................................

That’s right: for every maturity of bonds under 20 years, investors are paying the feds to take their money — and in the case of maturities of 10 years and under, paying a lot.

What’s going on? Investor pessimism about prospects for the real economy, which makes the perceived safe haven of US debt attractive even at very low yields. And pretty obviously investors do consider US debt safe — there is no hint here of worries about the level of debt and deficits.

Now, you might think that there would be a consensus that, even leaving Keynesian things aside, this is a really good time for the government to invest in infrastructure and stuff: money is free, the workers would otherwise be unemployed.

........................................SNIP"