U.S. Debt burden tests global investments:Bond sales risk failure

The Washington Times reports:

A bond auction failed last week in Germany, which has comparatively little debt to finance, raising concerns about whether the United States faces similar problems on a much larger scale. Wall Street rating agencies Moody's and Standard & Poor's Corp. said they are closely watching the surge in debt and the willingness of foreign investors to finance it.

"Fiscal risk has noticeably increased," said S&P analyst Nikola G. Swann, while "the country's exposure to a change in international investors' willingness to add to their portfolio of U.S. dollar assets grows with each year."

No word from Keynesian economists on this one.