USA is paying ~0.75% higher interest rates than Canada on it’s debt.
So yeah, it’s good for the USA that people are buying up the debt and suppoting the dollar but you can’t gloss over the fact that people are only buying it because the yields are good.
For a lot of countries if they can sell some 10 year bonds of their own currency for 3.4 and then buy 10 year bonds from the USA at 4.15 it’s like an infinite money glitch as long as USA inflation is less than or equal to their own inflation over the next 10 years?
I guess it’s not risk free but it’s hard to imagine the USA economy fails without taking Canada down with it so they might as well.
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USA is paying ~0.75% higher interest rates than Canada on it’s debt.
So yeah, it’s good for the USA that people are buying up the debt and suppoting the dollar but you can’t gloss over the fact that people are only buying it because the yields are good.
For a lot of countries if they can sell some 10 year bonds of their own currency for 3.4 and then buy 10 year bonds from the USA at 4.15 it’s like an infinite money glitch as long as USA inflation is less than or equal to their own inflation over the next 10 years?
I guess it’s not risk free but it’s hard to imagine the USA economy fails without taking Canada down with it so they might as well.