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It will simply be refinanced, like all other debt with sizeable balloon payments. The underlying problem is not the so much the maturity, which can create liqui
by antr 7y ago
It will simply be refinanced, like all other debt with sizeable balloon payments. The underlying problem is not the so much the maturity, which can create liquidity issues, but the continued use of debt to finance government deficits.
- vkou 7y agoThis is not a problem as long as the RoI on spending is possible, or as long as the dollar value of the economy is expected to grow, through population growth, productivity gains, or inflation. A government budget is not a household budget, and the same rules don't apply to it.