>a glut of new bonds appeared on the market as the U.S. government sold some $78 billion of 10- and 30-year debt last week.
But this isn't slowing down any time soon, so the problem will keep recurring. Deficit's are rising, and foreign purchases of treasury debt has plateaued the past few years.
This, some say, is the real problem: banks are forced to purchase this debt and so the funding needs of the US government are crowding out domestic banking sector. If continues, this means the Fed will effectively be monetizing US deficits.
Luke Gromen has covered this in various podcast interviews[0] and on twitter: @LukeGromen.
But this isn't slowing down any time soon, so the problem will keep recurring. Deficit's are rising, and foreign purchases of treasury debt has plateaued the past few years.
This, some say, is the real problem: banks are forced to purchase this debt and so the funding needs of the US government are crowding out domestic banking sector. If continues, this means the Fed will effectively be monetizing US deficits.
Luke Gromen has covered this in various podcast interviews[0] and on twitter: @LukeGromen.
[0] https://www.macrovoices.com/podcasts-collection/macrovoices-...