Regardless of the (false) concerns over our debt and annual deficits, as you can see here, there’s still a whole heckuva lot of confidence in America’s ability to repay its debts.
People want us to hold on to their money because they know that when the debt comes due, America will pay up. Here’s another graph I like to point to…
That’s the interest rate over the past ten years for 20 year U.S. Treasury Bonds. Right now interest rates stands at 2.4% — low by any historic measure. That’s a good thing.
So if people want to lend to us and we can borrow for real cheap, maybe the conversation should be about how we can leverage cheap money to invest in education, infrastructure and innovation, instead of drastic cuts and tax increases.