I have a question
Is it really true that the Fed is buying upwards of half of all new net Treasury issues? That is to say, are they "funding" over half of the deficit?
I ask rather than assert because the evidence that I've found is not exactly authoritative. You can check my sources here, here, and here.
If this is so, how can serious people be saying that we should expand borrowing to finance more stimulus because markets are telling us there is a huge demand for more safe assets like Treasuries?
The last link above claims the Fed's share of new issues is rising and consequently private markets' share is falling.
If that is true, is it accurate to say that the low interest rate on Treasuries reflects high demand and justifies further expansion of debt?