Financing the US Debt

Discussion in 'Economics' started by TGregg, Aug 27, 2009.

  1. TGregg

    TGregg

    Several years ago, the feds started financing most of the US debt with bills instead of bonds and/or notes. Is that still the approach? How can we tell if/when that changes?
     
  2. Daal

    Daal

    IIRC the average maturity of US debt is the lowest ever now(Dont remember the source). US is setting up for a funding crisis down the road
     
  3. It's not just the US, either. Most of the European sovereigns are affected similarly, although not quite to the same extent.
     
  4. morganist

    morganist Guest

    agreed any idea on a solution?
     
  5. promagma

    promagma

    Don't spend more than you have?
     
  6. morganist

    morganist Guest

    a little bit late for that. isn't it?
     
  7. Daal

    Daal

    They could run surpluses after the recovery. But we know that is not going to happen
     
  8. TGregg

    TGregg

    Nobody knows how to tell the current maturity rate of US debt?
     
  9. Daal

    Daal

    "The average maturity of the debt has already fallen from a range of 60 to 70 months which existed from the mid 1980's until 2002 to a level of 48 months more recently."
    http://www.ustreas.gov/press/releases/tg10.htm
     
  10. TGregg

    TGregg

    Thanks Daal.
     
    #10     Aug 27, 2009