- Mar 3, 2006
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And then.... there's paying for the larger "Sugar High" "growth."
A Tax Cut less needed than I've seen.
Obama left with 4.6% unemployment.. and dropping.
And it's kind of a double/triple whammy as the fed is cutting back it's balance sheet, while the Treasury has to borrow more... at higher interest rates.
Treasury Plans to Boost Borrowing as Trillion-Dollar Deficits Loom
Move could boost the cost of credit, rippling through the economy
By Josh Zumbrun and Daniel Kruger
Aug. 1, 2018
Treasury Plans to Boost Borrowing as Trillion-Dollar Deficits Loom
Looming trillion-dollar federal budget deficits are boosting the U.S. Treasury’s borrowing and could Restrain a fast-growing economy as the Cost of credit also rises.
On a day the yield of the 10-year Treasury note climbed above 3% for the first time since June, the Treasury Department announced Wednesday it would boost auctions of U.S. debt by an additional $30 billion over the next three months, in part by adding an additional $1 billion each month to its auctions of two-year, three-year and five-year notes.
Over the remainder of the year, the Treasury plans to borrow $329 billion from July through September—up $56 billion from the agency’s April estimate—and $440 billion in October through December. The figures are 63% higher than what the Treasury borrowed during the same six-month period last year.
...
The government is likely to run trillion-dollar deficits— the amount by which spending will outpace revenue—for the next four years, according to Office of Management and Budget projections released last month.
[chart]
Deficits are rising in part because spending has been ramped up and in part because corporate and individual tax rates were cut last year. White House officials say the tax cuts are spurring economic growth, which could push tax revenue higher, but for now the rate reductions are reducing collections from individuals and businesses because less is generated for each dollar of income.
"Everyone thinks we won’t have a problem financing trillion-dollar deficits until we have one,” said Brian Edmonds, head of Treasury trading at Cantor Fitzgerald LP....
[.....]
A Tax Cut less needed than I've seen.
Obama left with 4.6% unemployment.. and dropping.
And it's kind of a double/triple whammy as the fed is cutting back it's balance sheet, while the Treasury has to borrow more... at higher interest rates.
Treasury Plans to Boost Borrowing as Trillion-Dollar Deficits Loom
Move could boost the cost of credit, rippling through the economy
By Josh Zumbrun and Daniel Kruger
Aug. 1, 2018
Treasury Plans to Boost Borrowing as Trillion-Dollar Deficits Loom
Looming trillion-dollar federal budget deficits are boosting the U.S. Treasury’s borrowing and could Restrain a fast-growing economy as the Cost of credit also rises.
On a day the yield of the 10-year Treasury note climbed above 3% for the first time since June, the Treasury Department announced Wednesday it would boost auctions of U.S. debt by an additional $30 billion over the next three months, in part by adding an additional $1 billion each month to its auctions of two-year, three-year and five-year notes.
Over the remainder of the year, the Treasury plans to borrow $329 billion from July through September—up $56 billion from the agency’s April estimate—and $440 billion in October through December. The figures are 63% higher than what the Treasury borrowed during the same six-month period last year.
...
The government is likely to run trillion-dollar deficits— the amount by which spending will outpace revenue—for the next four years, according to Office of Management and Budget projections released last month.
[chart]
Deficits are rising in part because spending has been ramped up and in part because corporate and individual tax rates were cut last year. White House officials say the tax cuts are spurring economic growth, which could push tax revenue higher, but for now the rate reductions are reducing collections from individuals and businesses because less is generated for each dollar of income.
"Everyone thinks we won’t have a problem financing trillion-dollar deficits until we have one,” said Brian Edmonds, head of Treasury trading at Cantor Fitzgerald LP....
[.....]
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