"The worry is that over time, the more the government borrows, the more demands the government places on a limited pool of savings, the more it will potentially crowd out some private, productive investments," Joshua Feinman, chief economist at Deutsche Bank, told the Washington Examiner.
Already, the U.S. Treasury's outstanding public debt of $14.2 trillion at the end of September accounted for a big portion of the $40.3 trillion bond market and dwarfed some $8.7 billion in corporate debt.
The Treasury is likely to have to increase the interest rate to attract buyers to the bonds it must issue to cover $1.5 trillion more debt created by the tax cuts Congress passed in December and a further $320 billion due to a spending agreement this month.
The so-called rolloff began with a cap of $10 billion a month that will eventually rise to $50 billion.
Chris Krueger of the Cowen Washington Research Group put it more bluntly: "Trump's budget delivers the final death nail into the former GOP deficit-hawk mantra," he wrote in a report.
The agreement, which raised spending caps by $300 billion over the next two years and suspended the debt limit, prompted Bank of America to raise its deficit forecast by 4.4 percent to $825 billion in 2018 alone.
Treasury borrowing will probably be $441 billion in the first three months of this year, double the average over the past five years, and $176 billion in the second quarter, which is far more than the $8 billion which is typically borrowed as tax revenues roll in as taxpayers complete their returns in the run-up to the April 15 filing deadline.
http://www.washingtonexaminer.com/budget-bloat-and-big-borrowing-bother-business/article/2649211
Already, the U.S. Treasury's outstanding public debt of $14.2 trillion at the end of September accounted for a big portion of the $40.3 trillion bond market and dwarfed some $8.7 billion in corporate debt.
The Treasury is likely to have to increase the interest rate to attract buyers to the bonds it must issue to cover $1.5 trillion more debt created by the tax cuts Congress passed in December and a further $320 billion due to a spending agreement this month.
The so-called rolloff began with a cap of $10 billion a month that will eventually rise to $50 billion.
Chris Krueger of the Cowen Washington Research Group put it more bluntly: "Trump's budget delivers the final death nail into the former GOP deficit-hawk mantra," he wrote in a report.
The agreement, which raised spending caps by $300 billion over the next two years and suspended the debt limit, prompted Bank of America to raise its deficit forecast by 4.4 percent to $825 billion in 2018 alone.
Treasury borrowing will probably be $441 billion in the first three months of this year, double the average over the past five years, and $176 billion in the second quarter, which is far more than the $8 billion which is typically borrowed as tax revenues roll in as taxpayers complete their returns in the run-up to the April 15 filing deadline.
http://www.washingtonexaminer.com/budget-bloat-and-big-borrowing-bother-business/article/2649211
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