[sourcery]

You have a case to make. Make it.

I said that interest rates are a function of inflationary expectations, credit risk and supply/demand of lendable capital. The Federal Reserve report I referenced says exactly the same. If a Federal Reserve report does not suffice, I'll add the following: The US government can borrow money at a lower interest rate than any other borrower, because the credit risk is perceived to be lower. Conversely, companies in economic trouble have to pay rates considerably higher than the Microsofts of the world do. And the spread between the rates that good risks and bad risks have to pay varies independently of inflation. You should know that. Case closed.

[Phaedrus]

Yes, interest to individual borrowers will vary with credit risk. Some can't borrow. Our discussion revolves around interest rates to those who pay their debts timely, however. Would you agree with this?

[Phaedrus]

I am growing somewhat tired of this discussion, sourcery. Suffice it to say that you are no position to educate me.

[mac_truck]

The US government can borrow money at a lower interest rate than any other borrower, because the credit risk is perceived to be lower.

What event(s) are you suggesting is going to change this favorable situation for the United States, and which economy will replace ours as the safest place in the world to invest?