The irony of the flight to U.S. "safety" and its risks

Carmen Reinhart of the University of Maryland and Vincent Reinhart of AEI add support to my comments from three weeks ago about the irony of the international flight to safety in U.S. securities in their post today on VoxEU.org. They start out with this question:

"Why are investors rushing to purchase US government securities when the US is the epicentre of the financial crisis?"

Their answer is similar to mine. The U.S. still holds the position of the international economic superpower of the world, but the sustainability of that position depends on what policies we implement going forward.