How is Uncle Sam's credit these days?
According to the free market, U.S. Treasury securities are one of the safest investments on the entire planet—in other words, it's about as good as it gets. Uncle Sam is able to sell U.S. Treasury securities in return for U.S. dollars at near-zero interest rates.
But that begs an important question: SO WHAT?? A world-class credit ranking doesn't necessarily mean the U.S. government should borrow money.
No, it doesn't. Just because we can do it doesn't mean we should do it without a good reason. And this is where we can get some valuable guidance from our past. George Washington, Thomas Jefferson, Ronald Reagan, and our Constitution have told us and showed us when to borrow against our credit.
Hint: it's all about the defense budget and national security. For the details, see my latest article at American.com, the online magazine of the American Enterprise Institute:
Peace—and Prosperity—Through Strength