The Federal Debt Mess

I have been ragging on this for some time and I am not the only one.  The chorus is building.  We are heading toward a crisis.  It upsets me even more now that Trump has won because I don’t want to see his administration sabotaged by this mess that was dumped on him.  The amount of US debt being issued means there is less money for people to buy other debt, especially from companies that use it to finance important expansion projects or general growth.  It also stresses the companies that facilitate the debt auctions–the primary dealers in US debt, because they have to devote more of their capital to buying and holding that debt.  The number of potential untoward consequences just grows and grows.  And ultimately, there just won’t be enough buyers available, requiring even higher interest rates to get the debt sold.  Again, watch the auctions carefully over the next few months.  You can get see the upcoming auctions here (Auction Sched.)  and get results directly from the Treasury Department at (Auction Res.) .  And Zero Hedge and other sites routinely post commentary after each auction.  Here is the latest general piece from Zero Hedge.  (ZH Post)