Eli5: what are implications on US dollar, for the fact that $7+ trillion in interest-bearing US public debt will mature this year, approx. 30% of all outstanding US govt debt.
In: Economics
This is normal. It has been this way for decades. Government debt is usually short term. Every month the US government take up over $2T in debt, almost all of it with a maturity less then a year, some even as short as a month. Most of this debt is used to pay off old debt. So the $7T in debt that will mature this year will get paid down using new debt, and even most of this will be paid off with even newer debt by the end of the year. So this is not sensational in any way and just how government debts are being managed.
It’s like having a huge credit card bill due. If not managed well, it could potentially weaken the US dollar’s value.
Nothing really. Government debts mature all the time. As per standard procedure the US government will pay off the old bonds that mature by issuing new bonds and Bob’s your uncle. US government debt remains popular enough, and with good reason, that there should not be any issues with this.
Latest Answers