Who wants free money?

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    Aug 30, 2011 9:26 PM GMT
    Anybody in the right minds would want some, but apparently not the current US government.

    http://www.washingtonpost.com/blogs/ezra-klein/post/an-opportunity-we-cant-afford-to-miss/2011/08/25/gIQAHtWPpJ_blog.html#pagebreak
    This is going to be the most boring sentence I have ever included in a column, but it might also be the most important: The real yield on Treasury debt has, in recent months, turned negative. Sound impenetrably dull? Sure. But here’s what it means: free money!

    real%20yield%20treasuries.jpg?uuid=LQn3A
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    Aug 30, 2011 9:30 PM GMT
    q1w2e3 saidWho wants free money?
    What's the catch? There's always a catch. Do I have to sign up on a stupid mailing list?
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    Aug 30, 2011 9:36 PM GMT
    paulflexes said
    q1w2e3 saidWho wants free money?
    What's the catch? There's always a catch. Do I have to sign up on a stupid mailing list?


    The catch is we have to fix the future repayment of our loans in stone, and not leave it up to the winds of politics to jeopardize our credit rating.
    And we have to spend the money usefully, like in building infrastructure rather than bombing some far away country for nothing.

    OPHere’s what this means: If we can think of any investments we can make over the next seven years that have a return of zero percent — yes, you read that right — or more, it would be foolish not to borrow this money and make them.

    The case is even stronger with investments we know we will need to make over the next decade. The economy will get better, and as it gets better, the cost of borrowing will rise. The longer we wait, in other words, the more expensive those investments will become
    .