General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe US needs to borrow almost $300 billion this week
Uncle Sam needs to borrow a ton of money this week in the middle of a fight with its biggest creditor.
Federal revenue is declining because of President Trump's tax cuts, so the government needs to borrow more to make ends meet. At the same time, Washington's borrowing costs have climbed rapidly in recent months.
"The amount of debt coming on the market this week is extremely large," said Rick Rieder, global chief investment officer of fixed income at BlackRock, the world's largest asset manager.
The government is auctioning all this short- and longer-term debt at an awkward time. Last week, Trump vowed to impose wide-ranging tariffs on China, which owns of more Treasury bonds than any foreign country.
http://money.cnn.com/2018/03/27/investing/us-debt-sale-record-treasury/index.html
Wounded Bear
(58,648 posts)spanone
(135,831 posts)they learned NOTHING from looting the treasury last time
Wounded Bear
(58,648 posts)they don't mind and we don't matter.
gratuitous
(82,849 posts)My guess is buying up the debt the U.S. will be selling. It's a guaranteed investment, they'll get paid back and the Treasury won't have any money to waste on schools or roads or public health. In fact, maybe it's time to cut "entitlements" a little more?
greatauntoftriplets
(175,733 posts)That way Spanky will be even more in debt to them.
former9thward
(32,000 posts)That China won't buy U.S. debt? They will continue to do so because our economy is far more stable than theirs and our government is far more stable than theirs.
blake2012
(1,294 posts)When the US Treasury has to raise so much money and interest rates are rising, treasury yields will have to rise with them.
This means the US cost of capital is rising at the same time the US need to raise buckets more money as tax cuts and revenue decline starts occurring in 2018.