Part 3/8:
To manage the $7 trillion in maturing debt, the government will look to refinance, which means borrowing additional funds to repay the debts that are coming due. This approach is reflective of a much broader fiscal strategy, where borrowed funds exceed tax revenues, continuously escalating the national debt. The current reliance on short-term T-bills—debt instruments maturing within a year—compounds the issue. Over recent years, the government has drawn heavily from the Federal Reserve's reverse repo facility, leading to thinner reserves and creating complications for refinancing.