loosecannon
Senior Member
- May 7, 2007
- 4,888
- 269
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The government can't possibly be selling enough new bonds to cover a 1.4trillion deficit two years running since the Chinese and Japanese stopped buying our bonds and the oil rich states have been hampered by low oil prices.
Only the Fed can cover the gap, hence the use of the term "monetizing the debt". The debt service is still cheap due to low interest rates for 9 years. But the new debt is off the charts.
Only the Fed can cover the gap, hence the use of the term "monetizing the debt". The debt service is still cheap due to low interest rates for 9 years. But the new debt is off the charts.