Because, surprise surprise surprise, people don’t want to buy US debt right now:
US long-term interest rates rose to the highest level of the year on Wednesday, threatening the “green shoots” of recovery, after the latest sale of 10-year government debt met with a tepid response from inflation-wary investors.
Concerns about the growth of government borrowing forced the US Treasury to give investors in an auction of $19bn in 10-year notes a yield of 3.99 per cent – 4 basis points higher than the yield available before the auction. That constituted the biggest yield markup since a 10-year auction in May 2003, said Morgan Stanley. Yields on the 10-year note, the benchmark rate for US mortgages, hit a high of 4 per cent during the day, up from 3.6 per cent a week ago.
We can’t borrow our way to prosperity, nor can we print money and think we’re rich – only if we earn money will be be able to get out of this hole, and in order to earn we’re going to have to create actual, tangible wealth. This means we have to make, mine and grow things – take our sweat equity and turn it into wealth…and then use the wealth to pay off the massive debt we’ve wracked up. This does mean, liberals, that your grand plans for a socialist America are going to have to be put on hold. Or, you can keep up with Obamunism, bankrupt the country entirely and shove us into a 10-20 year long economic depression.
Your choice – we on our side will deal with it just fine, either way.
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