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[quote=Anonymous][quote=Anonymous][quote=Anonymous]

And most households don’t have bonds that every international investor usually wants to hold. If households could borrow a lot of cheap money, they probably would. The problem is that Trump is scaring everyone off and the investors want higher interest rates. [/quote]

This is another way the analogy breaks down.  Carried interest doesn't work for the US government.  EG if we have a low interest loan, we can't invest in a high return investment and make money.  EG we can't use excess from student loans or thirty-year mortgages to take out high yield CDs or put it in a 401K and make money on the cheap loans.  There is no net benefit to cheap loans for the government.  It's just throwing money down the drain.[/quote]

The arguement from the borrow cheap money crowd is that the government can invest in things that build productivity - education, infrastructure etc.. of course Congress is not disciplined and you just end up with more spending on everything.

But a huge reason we have $37 trillion in debt is tied to the very low interest rates we’ve enjoyed because of safety US securities.  [/quote]

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