Step right up, Treasury to issue $129 billion next week and Romer speaks to the grandkids

Our government continues to plow our grandchildren under more tonnage of debt; the Treasury announced today that they will sell $129 billion in notes and bonds next week.

They will auction $44 billion in 2 year notes, $42 billion in 5 year notes, $32 billion in 7 year notes and $11 billion in 5 year Treasury Inflation Protected Securities (TIPS).

In addition, the Treasury will auction $24 billion in 3 month bills and $25 billion in 6 month bills. Grand total of $178 billion next week.

Let’s check in with Christina “Aunt Bee” Romer.
Grandpa: Welcome to the Vigilant Grandpa Aunt Bee
Aunt Bee: It is my pleasure grandpa and thank you for the invitation
Grandpa: As you can see, the grandchildren in our audience have been looking forward to seeing you
Aunt Bee: Hi kids
Grandpa: Given the mounting debt load placed on these grandchildren, what steps are you and the administration taking to eliminate placing additional burden on their shoulders?
Aunt Bee: Well grandpa and children, I have my Ph.D. from MIT which makes me a very smart grown up. Since I am near genius, this is not the proper time to talk about steps however I will share my top 3 thoughts about our current debt and your future burden:

"Immediate fiscal contraction would inevitably nip the nascent economic recovery in the bud -- just as fiscal and monetary contraction in 1936 and 1937 led to a second severe recession before the recovery from the Great Depression was complete".

“Clamping down on spending now to cut the gaping U.S. budget deficit would be pound-foolish and derail the economic recovery”.

“It would be penny-wise but pound-foolish to deal with our long-run problem by tightening fiscal policy immediately or foregoing additional emergency spending to reduce unemployment.”

Time for you to leave Ms. Romer