Financing the US Debt

[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?

 

[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

 

[Martinghoul]

It's not just the US, either. Most of the European sovereigns are affected similarly, although not quite to the same extent.

 

[morganist]

Quote from 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

agreed any idea on a solution?

 

[promagma]

Quote from morganist:

agreed any idea on a solution?

Don't spend more than you have?

 

[morganist]

Quote from promagma:

Don't spend more than you have?

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

 

[Daal]

Quote from morganist:

agreed any idea on a solution?

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

 

[TGregg]

Quote from 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?

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

 

[Daal]

Quote from TGregg:

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

"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

 

[TGregg]

Quote from 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

Thanks Daal.