In an emergency, the U.S. Federal Reserve is prepared to buy unlimited amounts of U.S. government bonds. The Americans are stunned that the Europeans have decided not to use this weapon.
The sum is gigantic: The U.S. has $15 trillion in debt. But this does not seem to bother anyone. Undeterred, investors shovel their money into America. For a ten-year government bond, the USA has to pay only 1.9 percent interest. That is not only little, but less than nothing. That’s because inflation is at 3.53 percent. So investors actually make a loss when they invest their money in the USA.
Even more astonishing: Even turbulent U.S. politics cannot shake investors. Calmly, they took note on Monday that Congress could not agree on an austerity program. As if nothing had happened, yields on US government bonds remained sensationally low.