0% Interest Paid on U.S. Bonds

This information is simply quite amazing.  In spite of the fact that the USA is on an unsustainable spending track....the world is still clamoring to loan us money!!  So much so that at the recent U.S. bond auction there were people lined up to borrow our money even though we WON'T PAY THEM ANY INTEREST!!!

This morning, Bloomberg reported that investors' demand for Treasury bonds was the highest it's been since 1995. For taxpayers, the timing could not be better. The more banks, pension funds, and foreign countries clamor for Treasuries, the lower the interest rate our government has to pay. So in this age of gargantuan budget deficits, we're getting dirt-cheap loans to keep the lights on in Capitol Hill.

How cheap? According to Bloomberg, during an auction of short-term bonds last week, the Treasury received nine-times as many bids as it needed to sell off all its $30 billion worth of debt. The interest rate it offered: 0%.

Let me repeat that: The U.S. government can sell its debt without paying any interest at all. Zilch.

At Wonkblog, Ezra Klein says there's an obvious policy response in this situation: borrow more. He points out that once inflation is taken into account, Treasury yields are actually negative for five, seven, and ten-year bonds. In other words, investors are essentially paying the government to take their money. It's an ideal time to borrow and spend to put Americans back to work, while passing a deficit reduction bill that takes effect in a couple years.

And it's not clear the government will have a chance like this again any time in the near future. Treasuries have been buoyed by two powerful, but temporary, forces. First, Europe tumbled into crisis, which left U.S. government debt was as one of the last safe investments on the market. Meanwhile, the Federal Reserve went on a buying binge, snapping up $600 billion worth of Treasuries in order to try and push investors into other kinds of assets. The Fed's purchases made American debt even more scarce, meaning private investors were willing to accept comically low interest rates in return for a safe harbor to dock their money.

Here;  http://www.theatlantic.com/business/archive/2011/12/if-our-debt-is-so-dangerous-why-are-people-begging-for-more/250550/?google_editors_picks=true

What's amazing is that for the past few years we have been looking at the USA financial condition and saying, "What happens when no one show up at our auctions because they don't want anymore USA paper debt?"....and in reality the USA is getting a HUGE BENEFIT from being perceived as the LEAST WORST place to park your "safe money"....and people are still flooding to our auctions snapping up every IOU that we print!!

Could this be God's sustaining hand for us?

Could this be the final LAST DAYS MONEY TRAP that pours $trillions of global investor's money into the USA and when the rapture happens the USA will collapse leaving the globe's investors unable to collect on our IOU's?

Something strange is going on.  This condition IS NOT NORMAL.   To me this is simply more evidence that a very dangerous bubble is building.  The world is so desperate for safety and guarantees that they will PAY SOMEONE to simply hold their money....and that "someone" is the US Treasury.

Now maybe I am dead wrong.  Maybe the world's investors are correct in believing that the USA is such an incredible country and they are so positive that she will ALWAYS be here to pay her IOU's....that we should lighten up on all the doom and gloom news coming for America.  Maybe America's brightest days are ahead of her and everyone else realizes this...EXCEPT US!!!

Could be.  But let's remember to take a look at legalized abortion, lawlessness, divorce, broken families, porn addictions, falling away from the Gospel, extreme weather, strange signs in the skies, outbreaks of paranormal activity, the news focused on Israel, the enemies gathering against Israel, Israel being isolated, coalitions building, earthquakes, wars and rumors of war....and then remember that the USA is not mentioned anywhere in biblical prophecy.

I guess we all need to make up our own minds in these VERY confusing times.  Pray that the Lord Jesus will guide our hearts and minds during these strange times that he has blessed us to live in.