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Federal Government Should Be Borrowing More Right Now

Stan Collender:

Federal Government Should Be Borrowing More Right Now | Stan Collender's Capital Gains and Games: [A] good story by Binyamin Appelbaum about how low interest rates are significantly driving down the government's borrowing costs…. Appelbaum's piece… misses the real story. As Jesse Eisinger of ProPublica wrote about a months or so ago in The Times and I posted about here, there are three important budget implications of this situation.

First, as any business and many individuals would be doing in a similar very low interest rate environment, this is the time the federal government should be borrowing more rather than less, especially if the funds were used to pay for capital projects.

Second, it demonstrates that, to the extent possible, the government should be doing whatever it can to lock-in these low/negative interest rates by borrowing as much long- rather than short-term….

Third… the real question is why government borrowing has been and continues to be such a political issue….

The answer, and something that a pure business/financial reporter such as Appelbaum isn't likely to discuss, is that the whole issue of federal debt has nothing to do with facts…

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