Over $9T of Federal Debt Will Mature in the Next Four Years
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Over $9T of Federal Debt Will Mature in the Next Four Years
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Re: Over $9T of Federal Debt Will Mature in the Next Four Years
#2Am I wrong in thinking that this doesn't bode well for the value of the dollar over time, and will likely cause hyperinflation?
Re: Over $9T of Federal Debt Will Mature in the Next Four Years
#3Feels like Wile E. Coyote who has sped off the cliff but will keep going until he inevitably looks downward.
Re: Over $9T of Federal Debt Will Mature in the Next Four Years
#4Can someone ELI5 what this means?
Re: Over $9T of Federal Debt Will Mature in the Next Four Years
#5Am I wrong in thinking that this doesn't bode well for the value of the dollar over time, and will likely cause hyperinflation?
I think though the question is how does it bode for the dollar... relative to every other currency.
I'm not saying it won't have any impact but the dollar has been attractive for all the usual reasons for a long time, and over the course of a lot of events that folks predicted would make it less attractive.
Re: Over $9T of Federal Debt Will Mature in the Next Four Years
#6Can someone ELI5 what this means?
Interest rates will go up.
Re: Over $9T of Federal Debt Will Mature in the Next Four Years
#7Am I wrong in thinking that this doesn't bode well for the value of the dollar over time, and will likely cause hyperinflation?
Yes, you are wrong that it will likely cause hyperinflation. Even if the Fed simply monetized that debt (which it won’t do) you might get some inflation, but nothing close to HYPERinflation. What’s more likely, as the article states, is that more investor money will go to the government rather than mortgages or commercial loans, which will slow the economy, drive up interest rates, and potentially cause deflation.
Re: Over $9T of Federal Debt Will Mature in the Next Four Years
#8Re: Over $9T of Federal Debt Will Mature in the Next Four Years
#9Can someone ELI5 what this means?
The US Government spends more money than it takes in taxes. In order to finance the difference it takes out loans (in many ways just like you might take out a loan to buy something). These loans take the form of government bonds.
Various people/organizations buy these bonds and give the US government money. Later on these bonds "mature" and those people get their money back plus some interest.
This post is saying that about 9 trillion dollars worth of these bonds will mature in the next 4 years so the US government will need to come up with that much money to pay the bondholders. The way the government does this (for the most part) is by "rolling over" the debt. This means the government will issue new bonds that pay out at some point in the future.
In some ways this is actually great for the government because interest rates are at very low levels right now, which means the new bonds will (in most cases) have a lower interest rate than the old ones.