Explain This, GOP

Mitt and the GOP keep scaring people by saying that we are like Greece.  If that’s true, why is it that the U. S. can borrow for ten years for less than 1.75%.  Greece can’t borrow at all except from bailout funds and some very high-flying hedge funds.  Meanwhile, Spain is paying more than 6% to borrow for ten years, and Italy is paying 5.6%.

The rest of the world has much more confidence in us than our own Republican party.  Yet they say Obama is “un-American.”

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2 comments on “Explain This, GOP

  1. Why do you believe that the 10-year yield has anything to do with the viability of the bonds? After all, the yields for the debt offered by major financial corporations pre-2008 were very low as well, lower than Greece’s and lower than their historical averages. Perhaps the yield has little to say about the future, but everything to say about the past? Indeed, perhaps the U.S. is not like Greece, but the argument presented here is similar to saying “the Yankees are a great team because they play baseball;” it’s a true statement, in a sense, but the first does not neccessarily follow the second.

    • But the rates become a self-fulfilling prophecy. If we can continue to borrow at low rates, because other countries have confidence in us and our own people have confidence in us, we will be in better financial shape that if we had to borrow at much higher rates. Spain and Italy are in worse shape because of the high interest rates that show a lack of confidence in the future. It’s the interest payments that are killing them. I believe the low yield does have much to say about our future. This is where people want to come, and this is where people want to put their money.
      It is irresponsible of the GOP to fear monger by comparing us to Greece when the comparison is absurd (we have a central bank, we have our own currency, we can print money). It is especially irresponsible when the GOP doesn’t really care about the annual deficits/national debt, as shown by their determination to cut taxes even more on the rich and to increase defense spending.
      The Yankees are a great team! And it’s not like saying the Yankees are a great team because they play baseball. It’s like saying the Yankees are a great team because they are a very rich team in a big, prosperous market with a large fan base able to generate huge revenues, with ownership committed to spend what it takes to keep them playing in October.

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