ltlee:

~ Some academic support for the have the cake and eat it school.
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~ http://www.voxeu.org/index.php?q=node/4737
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~ --------------------------
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~ The long wave of government debt
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~ Andrew Scott
~ 11 March 2010
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~ Comment Republish

Demands for US IOU's ....

Based on latest stats, are very high. Especially lately, the
European PIIGS, scared the daylight out of world's investors
and they have been piling up on US debts. Interest rates are
historically low. Supplies are historically high.

There is not any whiff of a third rate power on the horizon.

Say world investors, "The US may very well be 2nd rate power
but there is nowhere for us to hide. The 2nd rate power will
do." With that, the former hyper power admonished its troops
not to waver, and order, "Charge ...."

".... it." ....

BTW: A barn-burner of an auction has just, completed. USD 40
billion worth of 30-year US IOU flew out of the window.
One large indirect buyer alone, who could not be named,
snapped up a jaw-dropping 30% of the entire batch.

Average yield came to be a bit over 4%. That's an A++++
performance.

Regards,

Albert K. Fung
Rancho del Canto, Paso Robles, California, USA.