There is $150 billion per month being created out of thin air by the BOJ and the ECB that indirectly makes its way to the US to buy Treasury bonds. This keeps the yield of T-bonds about 1% lower than it otherwise would. If this flow of money stops, then the US would immediately fall into a recession:
"I would venture a guess that without QE from the ECB and BOJ that 10-year U.S. Treasuries would rather quickly rise to 3.5% and the U.S. economy would sink into recession."
Thanks Japan and Europe, for subsidizing our economy. Thankfully, this situation will continue forever!
There is no need to worry about deficits because we can always issue more bonds. And they will be purchased with money created out of thin air. It's alchemy! We have discovered a way to create unlimited wealth. Step 1, have the government spend it on whatever they want. Step 2, issue bonds to cover the deficit. Step 3, the BOJ will create more money to buy the bonds. The only problem is that the government does not spend enough, We need moar!