U.S. issued $7 trillion in debt for 2009 fiscal year

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U.S. issued $7 trillion in debt for 2009 fiscal year

Wednesday, September 30th, 2009 | Economics |

The federal fiscal year ends September 30. It’s now estimated the U.S. issued $7 trillion in debt in 2009.

The U.S. finances its debt by selling U.S. Treasuries, which are interest-bearing securities similar to bonds. U.S. Treasuries are available in 1 year notes, 2 year notes, and other terms, all the way up to 30 year bonds.

About $5.3 trillion was revolving debt. Each year the government has to pay off the 1 year notes they sold 1 year ago, the 2 year notes they sold 2 years ago, and so on. That’s the revolving debt.

When the government goes deeper into debt they sell more Treasuries. This year’s new issuance included around $1.7 trillion in new debt to finance this year’s deficit spending.

Tags: deficits

1 Comment to U.S. issued $7 trillion in debt for 2009 fiscal year

Inflation or deflation? The man with the dollar printing press says “inflation” | Les Jones
October 20, 2009

[...] purchases the U.S. would be at the mercy of domestic purchasers and foreign governments to buy the $7 trillion in debt we sold in fiscal 2009, which included $1.4 trillion in new debt. All is going according to [...]