What will the Bond Vigilantes do? They’re coming to get America because of the DEBT!!!! BE AFRAID!!!!
Ron Paul: Profoundly wrong all the time… The yield on treasuries goes negative!
(Reuters) – The U.S. government may ask investors to pay for the privilege and safety of holding short-term debt issued by its Treasury Department.
In response to clamor from investors, the Treasury said on Wednesday it was looking closely at allowing negative-yield auctions. This would mean bidders who want the security of U.S. government debt in the face of global insecurity, might have to pay a premium for it.
Doing so would allow the U.S. government to benefit from something that is already occurring on the secondary market, where investors have accepted negative yields in recent months to protect their cash from financial strains.
Remarkably, Wall Street is asking to be able to pay a premium for U.S. debt even after the United States lost its prized AAA rating last year and as the government heads for a fourth straight year with $1 trillion-plus budget deficit.
Investors would have to pay America to park their money in T-Bills. So much for the power of the debt & deficit idiots.