The View That the U.S. Government Is on the Verge of Reaching Its Debt Capacity and Cracking the Treasury Bond's Status as Safe Asset in the World Economy Is...

...surprisingly widely held, especially inside the Federal Reserve, but simply insane.

Paul Krugman:

The Invisible Bond Vigilantes Continue Their Invisible Attack: Ten-year bond rate now down to 3.05 percent. Clearly, we must slash spending immediately to satisfy the market’s demands...