Debt Limbo: The US Treasury's High Stakes Game of Financial Jenga The US government's reliance on short term debt has created a precarious financial situation, one that could collapse at any moment due to rising interest rates and dwindling investor demand.
Issuing trillions of dollars in short term securities may have provided temporary relief from the crushing burden of $39 trillion in national debt, but it only delays the inevitable.
A sharp rise in short dated yields is a significant risk facing the federal government, particularly if the Federal Reserve hikes interest rates by more than expected.