The US has a $6 trillion refinancing problem over the next twelve months
Posted by freedomforall 2 months, 3 weeks ago to Economics
Excerpt:
"Over the next twelve months, more than $6 trillion in existing US government debt is set to mature… and will need to be paid back somehow.
So, to give you an example, back in 2014, the federal government issued $264 billion in 10-year Treasury notes.
Well, it’s now 2024, i.e. ten years later. Meaning that $264 billion worth of 10-year notes issued in 2014 will become due and payable this year.
In 2017, they issued $368.8 billion worth of 7-year notes. And those 7-year notes issued in 2017 are due and payable this year.
You get the idea. The point is that the total sum of Treasury Bonds, Notes, and Bills outstanding that will become due and payable this year exceeds $6 trillion.
So, in ADDITION to the $1 trillion in NEW debt that they’re forecasting just in the first six months of 2024, the Treasury Department is also going to have to pay back $6 trillion of existing debt.
Naturally the Treasury Department doesn’t have $6 trillion lying around to pay back its bondholders. So instead of paying anyone back, they just borrow new money to repay the old money.
Now, this doesn’t actually increase the national debt. If they borrow $6 trillion in new bonds, but then pay back $6 trillion in old bonds, the net change to the debt is ZERO.
So, what’s the problem?
The problem is that interest rates are MUCH higher than they were 2, 3, 5, 7, and 10 years ago when those old bonds were first issued.
In 2021, for example, the Treasury Department issued almost $1 trillion in 3-year bonds back when interest rates were nearly 0%.
But since those 3-year bonds from 2021 are due and payable this year, the Treasury Department will have to borrow new money at today’s interest rates… which are hovering around FOUR percent.
And higher interest rates mean that the government’s annual interest bill will soar."
"Over the next twelve months, more than $6 trillion in existing US government debt is set to mature… and will need to be paid back somehow.
So, to give you an example, back in 2014, the federal government issued $264 billion in 10-year Treasury notes.
Well, it’s now 2024, i.e. ten years later. Meaning that $264 billion worth of 10-year notes issued in 2014 will become due and payable this year.
In 2017, they issued $368.8 billion worth of 7-year notes. And those 7-year notes issued in 2017 are due and payable this year.
You get the idea. The point is that the total sum of Treasury Bonds, Notes, and Bills outstanding that will become due and payable this year exceeds $6 trillion.
So, in ADDITION to the $1 trillion in NEW debt that they’re forecasting just in the first six months of 2024, the Treasury Department is also going to have to pay back $6 trillion of existing debt.
Naturally the Treasury Department doesn’t have $6 trillion lying around to pay back its bondholders. So instead of paying anyone back, they just borrow new money to repay the old money.
Now, this doesn’t actually increase the national debt. If they borrow $6 trillion in new bonds, but then pay back $6 trillion in old bonds, the net change to the debt is ZERO.
So, what’s the problem?
The problem is that interest rates are MUCH higher than they were 2, 3, 5, 7, and 10 years ago when those old bonds were first issued.
In 2021, for example, the Treasury Department issued almost $1 trillion in 3-year bonds back when interest rates were nearly 0%.
But since those 3-year bonds from 2021 are due and payable this year, the Treasury Department will have to borrow new money at today’s interest rates… which are hovering around FOUR percent.
And higher interest rates mean that the government’s annual interest bill will soar."
I say horse shit. The Powers That Be know full well what is being orchestrated and they have complete control.
This is an engineered financial Armageddon.
Never let a crisis go to waste -- in particular, if that crisis was designed, built, shipped and marketed.
As the sea-walls of the financial edifice crumble, changes will be implemented at the margins.
Watch for Federal outlays to SS, SSI, SSDI come in the form of Federal Digital Debit Cards.
The transition will be made as smoothly and quietly as when your regional bank gets taken over by a larger bank -- you get an email, physical mail and all the verbiage indicating that this transition is for the greater good and how you will benefit as the result of the change. There is quite a bit of fine-print in the agreement that you will digitally sign, but it will be no different than the TOS (Terms Of Service) 80+ page document that you agree to with each iPhone upgrade.
None of this happens overnight. These things take time. All of the ingredients are in place; the cake is being baked.
Nothing will be nuked from orbit.
There will be no Day of the Rope.
There will be no show of force with pitchforks.
Donald James Tiberius Trump will not save you.
Secure what you can of your sovereignty.
Become the gray man -- hide in plain sight -- disconnect as much as possible from The System -- build and fortify all that is good in your world.
Bankrupt American, turn the Middle class, Lower Class and Working Class into Government Dependent slaves.
Centralize the physical currency into programable digital crap, to give your masters absolute control over you.
All you have to do, is do nothing.
Your choice.
easy to pay back this with worthless paper
just a theory
(peoples) debt will still exist after banksters have seized all the funds of customers
as allowed under the laws the corrupt con-gress passed to save the corrupt bankster
system at the expense of the people (debt slaves. )
You will own nothing and be slaves, unhappy slaves.
funny how all the laws seem to go one way....
(not really funny, can we borrow some guillotines from France?)
Let's borrow money for granite countertops to replace the functional ones. Great investment.