WASHINGTON, Nov 3 (Reuters) - Facing the need to borrow up to a staggering
$2.1 trillion in the current fiscal year to fund economic rescue programs,
the U.S. Treasury is expected to significantly expand its debt securities
arsenal.
I have been thinking about this today after I read about the borrowing we
will be doing over the next few years. Where will that money come from?
Japan, Great Britain, China and the oil countries have been loaning us money
in recent years but each has problems of their own. In order to attract the
money it will be necessary for the US to raise interest rates which could
revive the carry trade. But what it will do is force us unto massive tax
increases.
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