CFA related - US gov't considers issuing Floating Rate Notes

Regarding the ZeroHedge piece:

http://www.zerohedge.com/news/if-1951-accord-any-indication-treasurys-imminent-launch-floaters-will-be-signal-get-out-dodge

Towards the beginning of the piece it reads, “We have extensively covered the issue of collateral scarcity and encumbrance previously (read: “Encumbrance 101, Or Why Europe Is Running Out Of Assets”, “No Record Profits For Old Assets: Jim Montier On Unsustainable Parabolic Margin Expansion For Dummies”, “A Few Quick Reminders Why NOTHING Has Been Fixed In Europe (And Why LTRO 3 Is Not Coming)”, “How The Fed’s Visible Hand Is Forcing Corporate Cash Mismanagement”) so the paper’s conclusion should not come as a surprise: until cash is used to replenish a diminishing, cash-poor asset base, nothing can change. Unfortunately, in the ultimate Catch 22, under central planning companies are disincentivized from investing cash into CapEx and organic growth, and instead are spending it on M&A and dividends, the two worst decisions management can take over the long run.”

At the moment I am having a tough time reconciling why in the current condition companies are disincentivized from investing cash into CapEx and growth related projects as opposed to M&A and dividens. I realize that borrowing at such low rates is a great option. Still, any thoughts?