The US is looking for more ways to finance their shenanigans and a 50-year bond might be the answer. The announcement comes a day after President Trump made a remark suggesting that we should refinance our $22.5 trillion debt load which recently caused our deficit to surpass $1 trillion. This recent scandal between Trump and The Fed has a lot of people wondering how it will end up playing out, especially after the ECB just cut rates to devalue the euro against our dollar which is not good for exports.
Do you think we should issue these extended bonds?
https://www.cnbc.com/2019/09/12/mnuchin-says-the-treasury-is-seriously-considering-issuing-a-50-year-bond-next-year.html
I think that issuing longterm bonds would help in the short run, as it would increase the government's money supply. That being said, if we only issue the bonds, instead of addressing the issue of debt and continued deficits, deficits and debt will still be problems at the end of the fifty year period. It seems like another way of passing one generations debt and poor planning onto the next generation, without searching for a real solution to the problem.
ReplyDeleteI agree with Julia...It will most likely only be effective in the short term. Our damage is already done and no matter what, at the end of 50 years there will still be problems.
ReplyDeleteI agree with the two comments above. The 50 year bond will absolutely help in the short run, that being said it will just add to the ridiculous amount of debt we have in the long run.
ReplyDeleteIt would be interesting to see this play out. When looking at over countries who have adapted long term bonds and their success with it I feel like this could possible help.
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