It’s one of those numbers that’s so unbelievable you have to actually think about it for a while… Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that’s not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That’s an amount equal to nearly 30% of our entire GDP. And we’re the world’s biggest economy. Where will the money come from?
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Porter Stansberry - The bankruptcy of the United States is now certain (via financegeek) Fractional Reserve Lending + Kiting = Smooth Sailing? Rolling debt in the near future shouldn’t be much of a problem. Many dollars that come out of treasuries will go back into treasuries. |
