Posted on 02/04/2015 7:24:27 AM PST by Citizen Zed
Complicating the debt-management outlook is possible political wrangling over the debt ceiling after its suspension ends in mid-March. That will require the Treasury to use so- called extraordinary measures to avoid going over the limit until Congress raises it.
The department today said it will give clarity at a later date on how long it can go after March 15 before the limit is breached.
"Extraordinary measures will allow the government to continue to meet its obligations for a period of time after March 15," Seth Carpenter, acting assistant secretary for financial markets, said in a statement today.
"That said, it is impossible to provide a precise forecast as to how long the extraordinary measures will last."
The Treasury's total borrowing needs this quarter will be the lowest for the period since 2007. It plans to issue US$155 billion in net marketable debt in the first three months of this year, about US$54 billion less than projected three months ago, according to a Treasury statement earlier this week.
The department plans to pay down US$7 billion in debt during the April-June period, as the tax-filing deadline leads to a surge in revenue.
(Excerpt) Read more at businesstimes.com.sg ...
The Federal Reserve will print out a bunch of fiat currency and buy them if they don’t sell.
Post-it notes? With written IOUs on them?
What good is it to buy them if they have no future value?
What for? The total debt is over $18 trillion.
Only if someone will buy them..................
“What for? The total debt is over $18 trillion.”
That’s like me throwing an extra PENNY to the Principle on my farm debt.
*Rolleyes* We’re so screwed. AND NO ONE SEEMS TO CARE!
I believe the Federal Reserve buys most Treasury bonds and notes.
Xactly... In commoner terms, it equates to only paying $7 in two months on an $18,000 debt!
In addition over that 2 month period the amount of interest increased your debt $30. (that is only at 1% interest, even at 1/2 of 1% it is $15 and you only paid 7).
Great point!
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