2010 Unlikely to Make Treasury Holders Smile - Current Yield - Randall W. Forsyth - Barrons.com

2010 Unlikely to Make Treasury Holders Smile - Current Yield - Randall W. Forsyth - Barrons.com:

"I keep wondering about the concept of 'crowding out' with all this government borrowing.

Eventually the money tap has to run dry. I recall in the early 80's the worry that Federal borrowing was roughly equal to the total savings of the country at the time and that little money was left for car loans, mortgages, etc.

I haven't looked at the comparable numbers today; but, globally, socially minded democracies are borrowing like crazy to keep government employees well paid and benefit programs full (except for Ireland, which recently cut some salaries; but including Greece which says it will cut its deficit while spending with abandon, hmmm - oh yeah, we believe them).

We aren't increasing production - at least domestically - because the economics don't work. But, we are trying to goose consumption.

Somehow all the rosey projections don't quite add up!"