It doesn't quite work like that. At least in Treasuries. There's very little deviation in the "size" of each auction. Don't confuse deficit creation with debt service. Rollovers, that is maturing debt, occur weekly. T-Bill (3m,6m,52 wks) issuance dwarfs note issuance. It matters little what the current Treasury's needs are, what is of paramount expense is the borrowing costs when part of that 7 trillion comes a knocking each Monday. So regardless if the 3mo T-Bill rate is 1.25 or 3.25 there's still going to be an auction for 20 billion or so. The Treasury is balancing it's borrowing more and more with the re-issuance of 30's. This link will explain a bit of all this. http://www.treas.gov/offices/domestic-finance/debt-management/qrc/2005/2005-q4-charts.pdf
Greenspan really is master of his game. Plus, he looks like woody allen. <img src="http://nocturno.nsk.pt/otherpages/funny/images/Humor/woody%20allen.jpg"height = 100 width=100></img>
I'm not. You assert that if rates were higher, deficits would be higher. That is only the case if you assume that government fiscal policy is unresponsive to borrowing costs. Martin
Woody Allen raped his own adopted daughter and married her. All without the knowledge of his ex-wife. The guy should be in prison for statutory rape. Alan Greenspan loves bubbles. And is a deft politician. He also loved using the inflation fear a bit too much for his own ego and his own self interests at the cost of the collective - a la Ayn Randism.