Paul Solman Now Understands the Obvious

Krugman posts an article by Paul Solman who has come to the same conclusion that he came to a long time ago. The US Treasury can borrow at the lowest rates in its history. This suggests the investors do not fear inflation, since that wold make cause the bonds to lose value, and that they do not worry about the risk of default. It also tells us what they do worry about. They worry that austerity measures will slow down economic growth in the US and make other investments, such as equities less attractive.

This leads Solman to ask the obvious question. How come this is not reflected in the media? Most of what we find in the media is about the risk associated with budget deficits and the risk of inflation because of actions taken by the Fed.