>After borrowing $1T last quarter, the US Government can now borrow for free

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Take a look at this.  The yield on the 3-month Treasury bill, an instrument the US Government uses for short-term borrowing, has dropped to zero, or a couple of hundredths of a percent away from zero.

Who are the people willing to lend the US Government money for three months and want nothing in return other than a guarantee they’ll get their money back? 

The only thing I could think of is if my currency is decreasing in value fast, like Zimbabwe.  I can’t think of any reason I’d lend my money to someone for free considering it’s already in US dollars.

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About perkinsms

I'm an engineer and father interested in transit, parking and economics.
This entry was posted in budget, economics, government, inflation. Bookmark the permalink.

One Response to >After borrowing $1T last quarter, the US Government can now borrow for free

  1. Anonymous says:

    >”Who are the people willing to lend the US Government money for three months and want nothing in return other than a guarantee they’ll get their money back?”You mean like the millions of people who overpay taxes yet still get excited when they get a tax refund!? Actually, this year, I get a big one, because I made (taxable) 40k in the spring and (taxable) ~0k in the fall…

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