Posted on 01/31/2007 8:07:14 PM PST by NormsRevenge
WASHINGTON - The government, helped by a flood of revenue in recent years, said Wednesday it is considering scaling back its borrowing operations by possibly eliminating sale of three-year Treasury notes.
Anthony Ryan, Treasury's assistant secretary for financial markets, said that the government was considering various options with regard to the three-year note, ranging from changing the number of times it is auctioned each year to eliminating it altogether.
Ryan said in a statement that any announcement on changes to the three-year note would come in May and would take effect after the auction of three-year notes that month. Three-year notes are auctioned quarterly.
The change is being contemplated because the federal budget deficit, after hitting an all-time high in dollar terms of $413 billion, has been declining as the government has benefited from a rebounding economy. Those declines have reduced the government's need to borrow to finance government operations.
For 2006, the deficit fell to $247.7 billion, the lowest in four years.
The statement on the three-year notes came as the government provided details of how it will meet $141 billion in borrowing needs for the current quarter.
Those plans include auctions next week of $16 billion in three-year notes on Tuesday, $13 billion in 10-year notes on Wednesday and $9 billion in 30-year bonds the following day.
The rest of the borrowing needs will be met by other auctions through the period including the regular weekly auctions.
What are the Chinese going to do with all of the dollars they take in?
This is good news, now if we could only eliminate the rest of the borrowing....
Oh.....Bush's fault.
They'll start buying American companies, and before you know it we'll be in the 80s again with "The Japanese (now Chinese) are gonna own everything!" bleats.
exactly
and then japan crashed hard
fear is irrational
fear of the chinese is irrational and counter to past history
communism will no sooner overtake the american economy as global warming
When you see the double digit profit increases by Alcoa, HP and too many others to mention, the tax income to finish 2006 is going to be off the charts. Add to that the income and investment growth of the 401K world and you have another round of tax income that will shock everyone - except Milton Friedman based economists.
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