Reply to What’s up with the explosion of federal debt in the last 4 months?

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Reply to "What’s up with the explosion of federal debt in the last 4 months?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]It’s not also that the cost of debt servicing went up and we are also funding those costs with debt?[/quote]

No, it’s not that because new rates only affect new debt.[/quote]

Most of the past debt is short term. It’s being refinanced at higher rates. Next year .. last years 2 trillion, this years 2 trillion and 10 trillion that matures is gonna be 5 plus percent rate plus the FED unwound a trillion this year at 5 and another trillion next year.. plus next years 2 trillion plus added in.[/quote]I did read recently where the majority of the Federal debt will have to be refinanced in the next few years.  That is astounding to me.  So when we went through all those years of really low rates.........no one thought to package this debt into 30 year Treasuries or even 10 year Treasuries.    Who is going to be the buyer of all this debt?  They need to show the bond market that 
 Government will tighten its belt or their refinancing costs will continue to climb.  [/quote]

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