Posted by: The Elephant Owner in Economics on July 30th, 2009

The treasury is finding it harder to find buyers for all our debt.

The U.S. Treasury sold $39 billion in five-year debt Wednesday in an auction that drew poor demand, raising worries over the cost of financing the government’s burgeoning budget deficit.

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If this continues, the interest rate will have to be raised. This will cause the economy to slow.

The stimulus was meant to increase economic activity. In the long run, all it will accomplish is extending the recession and moving our economy from the private sector to the public sector.

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