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Treasury needed to pay off debt, but only issued staggering NEW debt

By Catholic Online (NEWS CONSORTIUM)
October 8th, 2013
Catholic Online (www.catholic.org)

They were SUPPOSED to make a dent in the already existing maturing $7 trillion-plus debt. Instead, the U.S. Treasury added to the approximately $7,546,726,000,000 in maturing debt by around $777 billion, making the total debt $8.3 trillion. Adding insult to injury, the Treasury turned around and issued another $8,323,949,000,000 in new Treasury securities.

LOS ANGELES, CA (Catholic Online) - The spread between the old debt held by the public that matured and was paid off during the fiscal year. The new debt that was sold to cover government spending over and above tax revenues.

The Treasury had needed to redeem only $6,804,956,000,000 in Treasury securities in 2012. The treasury needed to turn around and issue $7,924,651,000,000 in new securities, increasing the net debt held by the public by $1.119695 trillion.

The debt did not increase as much as it had in fiscal 2012, due to a large portion of the debt is composed of shorter-term Treasury bills and notes. The government is able to pay a lower interest rate than it would need to pay on longer term Treasury bonds.

Treasury bills have maturities of anywhere from a few days to 52 weeks. Treasury notes have maturities of between two years and 10 years whereas treasury bonds have maturities of 30 years. And the Treasury also sells Treasury-Inflation Protected Securities (TIPS), which have terms of 5, 10 or 30 years.

As of the end of fiscal 2013, the U.S. government's marketable debt held by the public was approximately $11,577,400,000,000. That included approximately $7,750,336,000,000 in medium-term Treasury notes, $1,527,909,000,000 in short-term Treasury bills-and only approximately $1,363,114,000,000 in 30-year Treasury bonds.

The table below, in millions of dollars, are the figures for the value of the debt held by public that Treasury redeemed and issued in each fiscal year since 2006, and also the net annual increase in that debt:

Redeemed / Issued / Increase

2013        7,546,726    8,323,949    777,223

2012        6,804,956    7,924,651    1,119,695

2011        7,026,617    8,078,266    1,051,649

2010        7,206,965    8,649,171    1,442,206

2009        7,306,512    9,027,399    1,720,887

2008        4,898,607    5,580,644    682,037

2007        4,402,395    4,532,698    130,303

2006        4,297,869    4,459,341    161,472

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