Treasury Bills have a maturity of one year or less. They also don't pay interest directly; instead, they are sold at a discount to their par value. Treasury Bills are practically like cash, unlike the longer notes and bonds, which are more like securities.
The total Treasury Bills outstanding as of 9/30/19 is $2,376,370 million. That is $2.3 trillion. I think it would be useful to see how this increases.
The 8/31/19 report shows this number as 2,331,300 million.
And the 7/31/19 report shows this as 2,205,307 million. So it is up almost 8% in only 2 months.
=========================
Update: I think that any treasuries that mature in more than one year are really a Ponzi scheme. So you wait forever to get your cash and when it finally matures, you just get handed another 30-year bond or whatever. Well you (which probably means a pension fund or insurance company) might get your cash, but as a whole, the funds just roll over. There should be a higher premium paid to investors to lock up their funds for that long, because of the inflation risk.
My point really is, again, that debt longer than one year can be ignored. Look at the short run. This really is inflation running wild. The system is melting up in real time now. The only reason we don't see it is because it is offset by deflationary pressures by the bubbles popping left and right.
No comments:
Post a Comment