Good news, at last, from the US economy: the government deficit is reducing. This is mostly due to increased employment, growth, higher taxes, and also investors buying interest-free bonds, that is they are giving the US government a free loan! An interest-free loan is amazing, but as this report says "people still need a safe place to put money in this turbulent world".
Our Swiftly Melting Deficit, Or How the U.S. is Killing It - The Daily Beast
A few funny things happened this spring as the U.S. hurtled along the road to fiscal degeneracy. The annual deficit shrunk by nearly a third, the size of the debt owned by investors began to shrink, and the government borrowed money for free.
Yes, the Golden Age of Deficit Reduction has begun.
The official April Treasury Monthly Statement comes out on Friday. But the Congressional Budget Office’s monthly review for April, released earlier this week, bears good news. The deficit was $489 billion through the first seven months of fiscal 2013, compared with $720 billion in the first seven months of fiscal 2012, a decline of $230 billion, or 32 percent. Meanwhile, the government collected so much money in April that it paid down about $50 billion of the debt it owes to investors around the world.
Now, the Irish economic climate is not the same as the USA's, and per capita its debt is much bigger, but could the same events trigger a similar result for Ireland? Or what could? And when?