Obviously the key here is the "the U.S. [may]avoid the day of reckoning for a while". It's coming, our number just hasn't been called yet.
Perhaps, as the article intimates, the resolution of this puzzle is akin to the old joke about two friends who see an angry bear approaching their camp site. One starts to put on his running shoes. The other says, “Are you crazy, you can’t outrun a bear.” To which the first replies, “I know, but I only have to outrun you.”
As bad as policy is in the U.S., it is worse in most other countries. That may help the U.S. avoid the day of reckoning for a while.
Tuesday, June 29, 2010
Why Are Treasury Rates Falling?
Harvard economist Jeffrey Miron tries to explain, given that the Federal deficit is about to explode (along with state and local deficits) :
at 5:49:00 PM