The U.S. Treasury is about to flood the market with debt to fund a $1 trillion deficit. Here’s why that is a worry

MarketWatch/Joy Wiltermuth

Image of young John Maynard Keynes reading paper, black and white“The coming deluge of Treasury issuance has stoked worries on Wall Street about whether there is enough liquidity in the system in the short term to meet the supply without pushing up short-term borrowing costs and inverting the yield curve even further.”

USAGOLD note: Significant annual addtions to the national debt have been a continuous feature of the American political and economic landscape since 1971. The United States departed the gold standard that year and laid the groundwork for deficit spending as means to financing federal expenditures. At the time President Richard Nixon declared: “We are all Keynsians now.”  We are Keynsians still and perhaps in a way that not even John Maynard Keynes would have approved.


Repost from 8-16-2019
Image: A youthful John Maynard Keynes

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