Today's Tweet of the Day comes from David Wessel (@davidmwessel), the Wall Street Journal's economics editor. It speaks for itself. But it doesn't necessarily tell the whole story. The U.S. government may be financing 36% of its spending. But how much is that financing costing?
The yield on the 10-year treasury has been falling for quite some time, recently dipping below 2 percent before recovering, but still hovering well below 3 percent. In other words, the government can borrow as much as it wants for practically nothing.
When you have to finance 36 cents on every dollar you spend, this is a position you want to be in. Worldwide, people still think the USA is safe place to stash their cash.