Treasury Sec Mnuchin said the he’s reviewing the specter of issuing 50 and 100 year duration bonds, joining the likes of the fucking leaves in Canada, the drunkards in Ireland and the illegals in Mexico.
Most people that I know are sanguin on national debt. They view it as something that never has to be paid off, especially since the largest holder of US debt is our own Federal Reserve. Isn’t that wonderful? The Fed creates magic money and buys government debt with it, drawing an interest rate from the people — based off what again? The minutia of the Fed’s gambits sometimes escapes me.
“I think it’s something we should seriously look at. I’ve already begun to talk to the staff about looking at that. We’ll reach out to the market, investors, different people, but I think it’s something that is a very serious issue of whether we should explore whether we can raise 50- or 100-year money at a very slight premium. That’s something that makes sense for Treasury to look at,” said Mnuchin.
“We’re not ready to make any formal announcement on whether we’re going to have a 50-year or 100-year,” said Mnuchin.
I can see it now. Trump will issue $1t in 100yr bonds, yielding 3.5% to fund his infrastructure projects and people will sop up that juicy high yielding debt for the trust funds of their children, providing them with a steady flow of income for life.
How generous of the treasury. Can’t wait.
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yes, issue 100 year debt, then rates rise and your facked as the bond holder.
It would challenge markets to price a C. Wealth destruction on the radar.