I hesitate to excerpt from this because it says it all so well and so briefly. But:
…the more taxes the US government collects, the more money it loses.
When the US government declines to sell a 10 year Treasury bill at a real rate interest rate of –0.57 percent it is agreeing to pay, to the bond market a fixed rate of 0.57 percent over the next ten years. …
Now you say, sure but interest rates can turn [on] you. And, they absolutely can. But, at minimum you must recognize that you are arguing that the US government enter into an interest rate swap with the Global Financial system because [
you that]your intuition about the path of interest rates is superior to that of the Global Bond Market. …
And, be aware, the Counterparty in this swap is folks like Goldman Sachs, JP Morgan, Morgan Stanley, and yes Barclay Capital.
Are you sure that you want to buy this swap?
Cross-posted at Asymptosis