Saturday, July 9, 2011

The Kroog Versus The Current Narrative

Via Steve Benen, Paul Krugman has a point:

After the release of the June job numbers, there were plenty of worthwhile charts and graphs making the rounds, but this one from Paul Krugman was especially helpful.

If the bond markets truly thought we had a debt problem, the 10-year would be at double-digit yields. Instead it's at historic lows. We can afford to borrow the money to fix the unemployment problem. It's right there in the numbers. We can do it. US debt is a good investment according to the people who put their money where their mouths are.

Why we're not doing so is pure politics.

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