The Austrian Solution: Austria Issues 100 Year Sovereign Bond (100 Years at 2%?)

Sadly, Congress has absolutely no controls on the willingness to spend money and promise entitlements to borrowers. Spending is a runaway trend in Washington DC.

1-Federal-Spending-and-Revenues-Fiscal-Doomsday

Much of this spending is entitlement spending, such as Medicaid and Medicare.

3-Federal-Spending-on-Health-Care

The explosion of Federal spending and entitlements will eventually recover an Austrian solution: 100 year debt. Until recently, Austria already led nations with the longest sovereign debt maturity of 70 years. Most other countries are at 50, 40 and 30 year maturities.

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The deal — which was priced at a yield of 2.112 per cent — is the eurozone’s first syndicated century bond. Belgium and Ireland each raised €100m in century bonds last year but those deals were private placements rather than open market offerings. Their issuance is part of a wider trend: governments around the world sold a record $63.5bn of debt with ultra-long maturities in 2016, according to figures from data provider Dealogic.

Does America issue 100 year Treasury bonds? No, how about 120 year bonds?

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