Mike Conaway: “U.S. taxpayers have benefited from artificially low interest rates because when the world's economy went bad, a bunch of…”

“U.S. taxpayers have benefited from artificially low interest rates because when the world's economy went bad, a bunch of the money that was out there fled. It was a flight to safety. That money fled into U.S. Treasuries. And we have basically been warehousing that money for folks all over the world at pretty near zero interest rates because they knew they would get it back from the American taxpayer. What's happening now, with these increased deficits, is not only are we having to issue debt to pay off maturing debt, but we also have to issue new debt to fund these trillion-dollar deficits out there every year. Normally, you would expect that an increasing demand would cause the price of whatever it is you are demanding to get more of to go up. And that hasn't happened because the rest of the world, like I said, has fled into U.S. Treasuries. Now, as the gentleman said, economies around the world are beginning to rebound.”